I would like to help a friend buy a property at around 250k by lending 50k and either a) setting this up as a loan with interest payable at, say, an average building society rate OR holding 20% of the property value. Which of these two options is easier to set up and make watertight? Or is there no easy way to do either?
Can I contribute to 1/5 of a property purchase and safeguard my investment?
Aug 29, 2003
4 Replies
Neither should present a problem. Just be aware of the danger that you might lose a friend by becoming their creditor.
society rate
set up and
Post/search on uk.legal. If you want the loan secured on the property you'll need to place a charge on the property -
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- Land Registry Online. Daytona
Ronald has a good point.
BTW - You can structure the deal so that you have a loan secured against the property and share in any appreciation. I can explain further if you like.
The basic pr>
property and share in any appreciation. I can explain further if you like.
agree assuming you stay within the law. Thsi sort of loan is common with commercial propreties in some places.
I'd appreciate some detail if you've time.
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