Has anyone ever let a friend invest in their BTL property?Make Text Bigger
Hi, I am looking for a bit of advice and wondered if anyone could offer any suggestions. I have a friend currently working in Bermuda, (but from UK), who is looking to get on the property ladder.
They can’t get an overseas mortgage, but have around 20K that they would like to invest and have asked for our help.
I have pondered whether they could invest their funds into one of the existing BTL properties that I own jointly with my spouse, but I wasn’t quite sure how to do this, or even if it is a good idea to suggest this to them. The reason for this is that it would have to be a long term investment to them as the market has suffered a bit of a downturn of late.
Not sure how this type of arrangement could be structured to ensure fairness to all parties. E.g. how do we work out the percentage of the value of their investment, and try to estimate the future value of the property. We would continue to be responsible for the mortgage/expenses and to receive the full rental income.
Also, there is the question of what sort of legal document would need to be drawn up in the absence of their name being put on the deeds to the property.
Has anybody ever done anything like this before?
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