|
|
|
|
|
|
|
|
 |
Wills, Trust Deeds, Living Together Agreements, Secured Family Loans Agreements Protect your family and your investment. We can arrange to advise on and prepare any of the following documents for a fixed price according to your requirements and circumstances. Simply ‘click’ on the contact me if you would like to proceed or ask for further advise. Will: the only way in which you can control what happens to your property and assets and control the choice of guardians for your children in the event of your death. Living Together Agreement: An agreement that can be as simple or detailed as you wish, recording the domestic financial arrangements between you and any other specific agreements that are important to you. Trust Deed: A legal document setting out the shares in which you own a property and the arrangements for valuing the property and sharing the proceeds should you need or wish to sell it in the future. Secured Family Loan Agreement: A legal document that would protect the funds lent as a deposit and would record any agreed terms such as payment of interest etc. It can also be used to protect any funds that have had to be paid out under a Mortgage Guarantor arrangement. The following contains a more detailed explanation and information on these documents and how they may affect you which may well be worth you considering. Introduction For most of us, buying a property will be the most expensive and important purchase in our lifetime. All of use would like to think that buying a property - either alone or together - will result in a happy ending. However, you could have a recipe for financial disaster and disagreement if you do not set things up properly from the beginning. As property law specialists we have put together this information to offer advice on ways to avoid unnecessary heartache and financial loss should there be a death or unexpected parting of the ways. The ideal time to consider these matters is while you are buying your property. Having your understanding of these issues recorded in writing now is much better than trying to establish what the intention was at a later date when your original intentions may be under dispute. Many couples, whether or not married, or in a civil partnership, find that having cleared these issues at the outset leads to greater harmony. The section above explains the legal documents we can offer that are frequently used to cover the various needs and circumstances set out below. These are particularly appropriate for:-
Owning Property Jointly Joint Tenants or Tenants in Common? If you are purchasing a property jointly with others - whether married, single or in a civil partnership - choosing the right type of joint ownership is crucial and is something that we must advise you on. First of all, you need to be aware that there are two options for joint ownership:
1. The property can be jointly owned so that you each have an equal interest in the property and so that if one of you died, the survivor would automatically own the whole property. This type of joint ownership is called "JOINT TENANCY". This type of joint ownership is rarely appropriate for unmarried couples or couples who have children from a previous partnership. OR 2. The property can be jointly owned so that you each own a specified share of the property (whether equal or unequal) and are each able to leave your own share by Will to whom you choose. This type of joint ownership is called a "TENANCY IN COMMON". This choice is particularly appropriate for:
It enables you to set out the shares in writing (in a Trust Deed see below) from the outset of the purchase, and additionally preserves each person's right to control what happens to his or her share on death, provided a Will (see below) is made. You must choose which option best suits you and you will be asked to confirm this during your purchase transaction. Wills A will is the only way of controlling what happens to your property and assets on your death. If you do not have a Will, the government decides who inherits your property. This means that your husband or wife might not inherit all of your property, and might have to share with your children or parents. It also almost certainly means that your partner may get nothing at all if you are unmarried or do not have a civil partnership. Choosing Guardians in your Will to look after young children is very important. If you do not do this, the authorities will do so on your behalf and this may not be the person you would have chosen. You can include provisions to minimise the amount of Inheritance Tax payable to the State on your death, to ensure the maximum is retained for the benefit of your family. Trust Deeds A Trust Deed is the legal document that records the shares in which Tenants in Common own their property. It would be referred to on any sale of the property or in the event of a dispute, as evidence of the parties' original intentions. It is always advisable to have a Trust Deed where one party has paid a larger sum towards the deposit and/or will be making greater contributions towards the mortgage or other outgoings. A Tenancy in Common is recorded by the Land Registry, but the shares and the content of the Trust Deed remain private. Living Together Agreements A Living Together Agreement is a common and straightforward document setting out the financial and other basis on which you have agreed to live together whether as two or more friends sharing a property or as a couple – such as:
Couples who are not married or who are not in a civil partnership have no legal right to each other’s money regardless of how long they have lived together. So, if they are committed but simply do not want to marry, a Living Together Agreement can be a very good solution. Living Together Agreements can prevent many potential problems during a relationship, and can save a great deal of heartache should the relationship end allowing couples to split up as amicably and fairly as possible should the worst happen. Parent and Family Loans and Gifts When it comes to low-cost loans with great repayment holiday offers, the Bank of Mum and Dad takes some beating. However, the easiest way to set up a family argument is to lend money to your relatives. If you are borrowing a house deposit from parents or family, or if you are the one who is making the loan, make sure that the ground rules are laid out clearly from the outset. What interest, if any will be paid? When will the money be paid back? Who is responsible for paying it back and how will this be done? It may be that instead of asking for the loan to be paid back in monthly instalments, parents are willing to have it back on the sale of the property. Also, if the house purchase is as a couple, or as friends, set down what will happen if there is a break-up or one decides to leave the property. Getting the details down on paper (in a Trust Deed or Secured Family Loan see below) and having all parties sign the agreement is a very good way of establishing exactly what the rules are. The Guarantor For parents who would like to lend a hand but feel uncomfortable about handing over a sum of cash, acting as a guarantor might be the answer. Guarantors extend a buyer’s borrowing power by promising to be responsible for the mortgage payments if they are not met. By doing so their finances will be taken into account, but they will not go on the property deeds. If the mortgage payments are not met, the guarantor is responsible for finding the cash to pay them. If the worst happens and you end up having to pay the mortgage as the guarantor, you will almost certainly want to be able to reclaim the money you have paid out of any profits on the sale of the property (by means of a Trust Deed or Secured Family Loan see above).
|
|
|
||
 |
 |
 |
