Charge on property against personal loan

[Essie1234]

Several years ago I transferred a large amount of money from my bank to my Son's bank to look after for me in the event anything happening to me. He has since lost his job and having a family and mortgage to pay I gave him permission to draw from the money on the understanding that it would be paid back. However he has now asked me to take out a charge on the property against the amount I gave him. How do I proceed with this as an OAP I am not au fait with this type of procedure. Many thanks to those who will be able to advise me.

[WILLWONKER]

Not a nice family matter, his he saying all of the money has gone or he just wants to hang on too whats left ? I think a charge on a property means that if the property is sold you usually have to be paid first, but if there are other charges on such, before you then they will be paid first, you really need to see if you can get some free initial advice from a professional, because it seems he is saying you will never see your money again. try the finance topic in answerbank.

[Essie1234]

Thanks Willwonker, no he still has some left but as he is without a job and a family and mortgage to pay he was wondering whether I could put a charge on their house as there is quite a bit of equity.

[brenda]

Essie -- don't want to be all doom and gloom , but--is there recorded evidence of this money transfer or did you just do it?I do not know either you or your son , and would not wish to think badly of him in any way, but think you are going to need legal advice here to protect your cash.Consult a solicitor as soon as you can or you may lose all. V.Good luck Brenda.

[Essie1234]

Hi Brenda, trust my Son totally. It's just that as he hasn't got a job at the moment and no money coming in it was agreed that he use my money as a loan. Yes I have official bank statement transfering the money to his account. As he has quite a bit of equity on their house, it was his suggestions that I place a charge on the house before they put it up for sale.

[WILLWONKER]

You said that you did not know how to proceed in putting a charge on your sons house, will not your son guide you on how to do this, has this seemed to be your main worry at this time.

[Essie1234]

Hi Willwonker, unfortunately neither of us know the procedures having never been in this situation before.

[fredpuli47]

Please see my answer and comment where you asked this under 'personal finance'.

[S_C]

seek the advice of a lawyer ,

check if they charge for a first consultation " many will do inicial consultaions free "

i think there maybe a charge for the actual service of placing a charge against the property. however you will be adviced of this .

if i understand it correctly and i could be wrong ,
placing a charge against the property is like saying

there are debts against the property which have to be settled first from any proceeds.

if it is this would show on any search done against the property and could put potencial buyers off buying the property.

as stated im not entirely sure on this , but in all cases would highly recommend seeking legal advice.

[Essie1234]

My thanks to all my co-readers/helpers and I think it is the consensus of opinion that I seek legal advice on how to lay a charge of the property. No doubt this will have to be a 2nd charge as the Mortgage Company will have the 1st.