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Family loans for property: expert legal advice
Family loan agreements for property that protect your interests
Thinking about lending or borrowing money within your family to help with a property purchase or investment? A family loan for property is a growing trend in the UK, but without clear legal advice, it can lead to disputes, tax implications, or issues with mortgage lenders.
Our experienced real estate finance solicitors support families across England and Wales with clear, practical advice, ensuring your interests are protected with a watertight family loan agreement and, where appropriate, legal security over the property.
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CLICK HERE TO GET IN TOUCH WITH USWhat is a family loan for property?
A family loan for property is a private agreement between family members, commonly used to help fund a house deposit, purchase, or investment. Unlike a gift, a family property loan is intended to be repaid, so having a clearly written family loan agreement is vital to protect everyone involved.
Further information
Why instruct a real estate solicitor for family loans?
Getting legal advice early on can help avoid complications later. From documentation and tax planning to lender requirements and relationship protection, there are several key reasons to involve a solicitor when setting up a family loan for property.
Protect family relationships
A professionally drafted family loan agreement helps prevent misunderstandings and disputes, especially after the death of a lender or borrower.
Meet mortgage lender requirements
Most mortgage lenders require formal documentation of any family loan or private loan between family members. We make sure your agreement supports, not hinders, your mortgage application.
Tax and inheritance planning
Our team advises on the inheritance and tax implications of family loans, including the potential effects on your estate and lifetime gifting.
Clear repayment terms
Unclear repayment terms are a leading cause of family loan disputes, particularly if the lender dies without documenting the agreement. We will help you set these out clearly from the start.
Security and land registry
Our solicitors can secure your loan against the property and register your interest at HM Land Registry, helping you stay informed about any future dealings that could affect your security.
Our family loan legal services
If you’re considering a family loan for property, our team can provide expert legal advice that’s tailored to your situation. We’ll help you put everything in writing, protect your investment, and avoid future misunderstandings.
Our Real Estate Finance team provides tailored legal support for family lending arrangements, including:
- Drafting and reviewing family loan agreements and security documents
- Advising on tax and inheritance issues
- Liaising with mortgage lenders regarding family mortgage loan agreements, ensuring that the loan terms align with the lending criteria
- Supporting with dispute resolution or mediation if disagreements arise
Lucie Byron
Lucie heads up our Real Estate Finance practice, acting for both lenders and borrowers. Lucie is also responsible for our trainees, overseeing their recruitment, care, training and development.
Sarah and Lucie, you've both been brilliant, I couldn’t recommend you enough.
