We have blogged before about the importance of financial agreements in protecting assets. Another document essential for protecting contributions which come from family members is a loan agreement.
If parents or other family members give money to an adult child to assist in the purchase (usually jointly with their partners) of an asset, it is important to protect that loan in the event the relationship breaks down.
It is reported the number of first time property buyers who have sought assistance from parents to purchase property hit a 61% high in March 2021. The boom in the housing market means that larger loans are required.
There are formal aspects to loan agreements if the aim is to prove to a Court that the loan agreement is legitimate.
If you need advice or assistance in this area, contact one of our specialist family lawyers.
Tiyce & Lawyers – we’re here when you need us.
