Help to buy... family support

[gratefulheart]

Does anyone know what the implications would be, if any, of a family member paying off my help to buy equity loan and the holding a 20% share in my home?
Will it affect the remortgage process?
Is it allowed?

Bump

Would the person have a second charge amounting to the sum they paid off for you, or are you talking about splitting the ownership 80-20 so they are named as a part owner/tenant in common?

Yes it will affect the process - lenders are not particularly keen on second charges because it can make repossession very muddy, and I'm not sure you can mortgage just your share of a property ie your 80%.

Definitely don't do anything before taking legal advice and speaking to a mortgage broker or two.

Not sure what second charge means?
Was thinking she would 'gift' me the amount needed to pay off the loan with the agreement that she had a twenty percent share in my property moving forward?

You need to check the small print and get a solicitor involved, It is not a gift though if the person gets a share of the equity and name on deeds in return. It is likely the mortgage company (who have first charge) will need to know of the changes whether you remortgage or not,

Your mortgage is secured against the property, that is a "charge" against the property. So if your relative has a share in the property the usual way to do that is to secure it with a charge. Mortgage lender will always insist on being the first charge so they are first in the queue for repayment.

As pp says, what you're proposing is not a gift, you're selling them 20% of your house. For a mortgage lender that's very complicated when they want repayment.

If your relative doesn't have a secured charge, or you don't formally change the ownership of the property ie at the land registry, a document saying they own 20% doesn't mean much.

Thanks
Doesn't mean much as in legally?
Can it be between us as a trust document?