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My wife and I decided to buy a home and found one that we really liked. We hadn't sorted out our mortgage beforehand and we only realised that the process is really long to get the mortgage after we'd chosen the property we were interested in.
When I was explaining to my boss what had happened, he became very keen to help me put and asked the owner to hold onto the property till our mortgage come through. He even said he'll give 20,000 pounds deposit immediately but they refused. So cut story short, my boss bought the house for me with cash (he's a millionaire) and now we will be making monthly repayment to him as we would have had we obtained a mortgage from the bank.

I just wanted some advise on what to look out for in order to ensure that the property is ultimately mine in 25 years. The land registry needs to be n my name right? How do we do that?

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    Whose name is on the deed now? If this were done right, you would own a house and bossman would have a lien on it for the full amount of the loan. And you'd have signed an agreement to the terms of that loan. – JTP - Apologise to Monica Jul 28 '16 at 22:35
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    Please tell me there's a signed contract here. Which maybe a lawyer looked at? Please? – AakashM Jul 29 '16 at 8:02
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    This question would really benefit from a tag indicating the country / jurisdiction. – Vicky Jul 29 '16 at 13:39
  • @Vicky I'm going to take a stab in the dark and guess we're not talking about Egypt, Lebanon, South/Sudan, or Syria... – AakashM Jul 29 '16 at 14:43
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    Also, even if it is UK then it matters whether it is in England & Wales, Scotland, or Northern Ireland. – Vicky Jul 29 '16 at 15:52
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This is legal question in some aspects.
Some aspects can't be commented without knowing the details of agreement.

Ideally:
The Property should be in your [or you and your wife] name. There would be an additional personal loan you would have signed between you and your boss. The property would have a lien on it in favour of your boss.

Depending on the country, in general the payout you make towards this loan will not be eligible for tax benefits.

In the near future you should negotiate a loan with Bank, depending on country the Bank may treat this as Loan against Property or regular home loan. Use this to payout the boss and execute the lien in favour of Bank. This is extremely important, because if your relations with boss go bad, you would have more issues.

Something Else:
If your boss is not a person of integrity, he may have got the home in his name and treating your payouts as rent to him.

Or Else:
He may have taken the house in his name, so that you get time to sort out the home loan at which point in time he will sell you the property. Note in such scenario, there would be additional expenses like taxes on sales / closing costs / etc that would increase the price marginally to you.

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  • @Zaf I'd like to point out that this will probably ease your boss' mind as well (assuming good faith), since once you get a bank loan, the boss will no longer have the risk or hassle of accepting payments directly from you. – jpaugh Nov 16 '16 at 23:53
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You must register all land or property with Land Registry if you’ve:

  • bought it
  • been given it
  • inherited it
  • received it in exchange for other property or land
  • mortgaged the property

So as you haven't done any of these, you cannot register your property at the Land registry. And how could you jump into buying a house without doing any groundwork ? Did you not discuss this idea with your friends or families ?

But all is bygone now. Better is sort out the situation with your manager in clear legal terms. After you get your mortgage, buy your house from your landlord and get your name on the deed at the Land Registry. My advice is get it done immediately. Meanwhile keep a paper trail of all payments to your manager. Might come in handy if you need to go to the courts.

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