Second Charge on property in the uk?

I have a few questions;
Does having a second charge on someone’s property count as assets or capital?

Does this affect benefits?

Is this recorded on your credit file?

I want to put a charge on someone’s property for £65,000 in the uk please advise and also do I declare this as I technically only get the Money when and if the homeowner sells.

2 Replies to “Second Charge on property in the uk?”

  1. 1. A charge on a property is an asset and therefore forms part of your capital.

    2. No idea if it will affect your benefits, it is an asset. You own an equity interest in a house that you do not live in.

    3. No it is not on your credit file.

    You do not say how this situation came about.

    If you put up the money for someone to buy a house and are looking to secure the loan via a charge on the property, then be sure to also charge a market rate of interest as otherwise they will be taxed for a ‘benefit in kind’.

    If someone owes you this money then you show it as a secured loan.

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