I have loaned my son £30,000 to start-up his business, and have agreed with my son to put a charge on his house. How would I procede from here!
Province/Country relating to question : UK
HiThanks for your question. A charge can be registered against the legal title to a property if agreed by respective parties by them executing the Land Registry CH1 form and then sending it for registration to the Land Registry with LR form AP1. If you are acting without solictors then you would both also have to execute ID1 forms with a local solicitor for a charge of £10.00. CH1 form:-http://www.landregistry.gov.uk/_media/downloads/forms/CH1.pdfCharges guidance:-http://www.landregistry.gov.uk/professional/guides/practice-guide-29LR Forms:-http://www.landregistry.gov.uk/professional/formsHowever, if you are to agree a repayment schedule and/or conditions of what should happen (eg. Interest etc) in the event of default then you should see a local solicitor to draw up a formal Charge in deed form to gve effect to this. Your son should also check with the lender to any mortgage he has to ensure that this is acceptable to them. Please remember to RATE my answer OK SERVICE, GOOD SERVICE OR EXCELLENT SERVICE or above if you are satisfied that you have received the correct legal advice (even if it is not the answer you wanted to hear), otherwise I do not receive any credit for answering your question. If you are not willing to rate my answer as OK SERVICE, GOOD SERVICE OR EXCELLENT SERVICE then allow me to assist further by replying asking what clarification you require rather than rating my answer at levels below.If you wish for me to provide you with further guidance on any question you may have in the future then please submit a further question to the board requesting me either by my profile or by marking your question. “FAO Tom”. Kind regards,Tom
BA (Hons), PgDip, Practising Solicitor
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