Q&As

A divorcing couple own a property in joint names. As part of the divorce settlement, it is proposed to transfer the property into the wife's sole name, subject to a charge in favour of the husband for a stated percentage of the value of the property, such percentage rising to another stated percentage in the event that she has not managed to sell the property within seven years. Is it possible to deal with the charge in one document or would a new charge need to be entered into after seven years?

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Published on LexisPSL on 21/06/2017

The following Property Q&A provides comprehensive and up to date legal information covering:

  • A divorcing couple own a property in joint names. As part of the divorce settlement, it is proposed to transfer the property into the wife's sole name, subject to a charge in favour of the husband for a stated percentage of the value of the property, such percentage rising to another stated percentage in the event that she has not managed to sell the property within seven years. Is it possible to deal with the charge in one document or would a new charge need to be entered into after seven years?

A well-drafted charge will be able to provide for a percentage uplift for the value of the property without any difficulty. The charge and the loan agreement (as it will always be sensible to reduce the loan agreement to a contract or deed—the benefit of the latter being that no consideration is required for the same to be enforceable) should provide for the appropriate uplift. Provision should also be made to deal with the situation where the value of the property goes down, and also if i

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