Hi everyone,
my friend and I have just put in an offer to buy some land and commercial buildings which is likely to be accepted. I am a cash buyer of 50% and he is using a loan from his bank for his 50%. His bank are wanting to secure his loan on his existing business and the land were are purchasing- subject to valuation.
My question is how can I, or is there a way to secure my cash investment in the unlikely event that he defaults on his loan payments and the bank want to repossess.
my friend and I have just put in an offer to buy some land and commercial buildings which is likely to be accepted. I am a cash buyer of 50% and he is using a loan from his bank for his 50%. His bank are wanting to secure his loan on his existing business and the land were are purchasing- subject to valuation.
My question is how can I, or is there a way to secure my cash investment in the unlikely event that he defaults on his loan payments and the bank want to repossess.
My initial idea was to buy the land as two plots (which the vendor is happy with) so my half is separate from his and the bank does not secure on my half, but apparently this is a messy way of doing it. The brokers my partner has been dealing with, one has said there are ways to do it and one has said its not doable.
We are not quite at solicitor stage yet so I thought I would ask here if anyone has been in this situation before or even if there is a text book course of action for this type of partnership.
Thanks in advance for any input,
Hes.