Emyr Pierce

Second Charges over properties

My mother gave us money to pay the deposit on our house and we would like to ensure that if we need to sell it she gets her money back before any other unsecured debts are paid. How do we do this? Do we need to tell the Mortgage Company?

The best way to protect your mother’s deposit is to allow her to take a Second Charge over the property to the value of the deposit which she provided to enable you to purchase the same. This will rank second in priority behind your main mortgage – ensuring that in the event of a forced sale your mother will have second call on the net proceeds of sale after the payment of your main mortgage. This will ensure that the claims of any creditors who may have obtained a Judgement against you for any other unsecured debts, will rank third behind your mother and your main mortgage company. But it is important to carefully consider the terms of your main mortgage as some mortgage companies will not authorise the registration of a Second Charge.

• Emyr Pierce is Managing Partner of Emyr Pierce Solicitors in Rhiwbina, Cardiff, Western Mail Conveyancer of the Year, specialising in Domestic and Commercial Property.

Tags: Cardiff, Emyr Pierce Solicitors, Loan, property, Second Charge

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