My wife and I had found a property we liked, we had planned to buy it the tradtional way, via cash savings + a repayment mortgage from a bank for 20 years.
Her parents have offered financial assistance, however, this is what they have proposed:
- They buy the property in full from savings and take ownership.
- We pay 25k towards the initial cost of buying the property.
- They gift us 40k off the initial cost of buying the property.
- A fixed price lump sum to be agreed including interest, this would then become the principle sum to be repaid..
- The agreed principle is repaid via monthly installments over 10 years, we can also reduce this term by over paying.
- Once we have repaid the balance in full they will transfer ownership of the property to my wife and I.
An agreement is to be drawn up between us with no third party envolved, what advice can you offer in terms of the provisions that should be made in the agreement.
We need to ensure both parties are protected, if things go wrong for some unknown reason.
Her parents have offered financial assistance, however, this is what they have proposed:
- They buy the property in full from savings and take ownership.
- We pay 25k towards the initial cost of buying the property.
- They gift us 40k off the initial cost of buying the property.
- A fixed price lump sum to be agreed including interest, this would then become the principle sum to be repaid..
- The agreed principle is repaid via monthly installments over 10 years, we can also reduce this term by over paying.
- Once we have repaid the balance in full they will transfer ownership of the property to my wife and I.
An agreement is to be drawn up between us with no third party envolved, what advice can you offer in terms of the provisions that should be made in the agreement.
We need to ensure both parties are protected, if things go wrong for some unknown reason.