Q&As

I act for a client who wants to transfer a house she holds as an investment to her daughter valued at £90,000. No funds are changing hands but her daughter is to enter into a loan arrangement for the full value of the property for a term of 25 years. The loan will be secured by first legal charge. Interest charged at 1.5% and repayment will be made on the death of the daughter or when the property is sold. I am concerned this arrangement falls with the Consumer Credit Act 1994, or the Financial Services and Markets Act 2000.

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Published on LexisPSL on 03/11/2015

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

  • I act for a client who wants to transfer a house she holds as an investment to her daughter valued at £90,000. No funds are changing hands but her daughter is to enter into a loan arrangement for the full value of the property for a term of 25 years. The loan will be secured by first legal charge. Interest charged at 1.5% and repayment will be made on the death of the daughter or when the property is sold. I am concerned this arrangement falls with the Consumer Credit Act 1994, or the Financial Services and Markets Act 2000.
  • The regulation of consumer credit
  • Does the Consumer Credit Act 1974 apply?
  • What are the exemptions under the CCA 1974?
  • 60H Exempt agreements—exemptions relating to the nature of the borrower
  • 60D Exempt agreements—exemption relating to the purchase of land for non-residential purposes

I act for a client who wants to transfer a house she holds as an investment to her daughter valued at £90,000. No funds are changing hands but her daughter is to enter into a loan arrangement for the full value of the property for a term of 25 years. The loan will be secured by first legal charge. Interest charged at 1.5% and repayment will be made on the death of the daughter or when the property is sold. I am concerned this arrangement falls with the Consumer Credit Act 1994, or the Financial Services and Markets Act 2000.

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

The regulation of consumer credit

Regulation of consumer credit now sits with the Financial Conduct Authority (FCA). In consequence, parts of the Consumer Credit Act 1974 (CCA 1974) were repealed from 1 April 2014 with regulated activities coming under the

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