Draft Secured Loan Agreement

I’m lending a friend £200,000 so they can clear their mortgage, with the understanding that the loan will be repaid from the sale of their property within 12 months. To protect my position I want a watertight, UK-compliant contract and charge drafted by a legal professional.

Key points that must be reflected:
• The loan is interest-free; repayment is strictly the original £200,000.
• A legal charge must be registered against the property at HM Land Registry to secure the debt.
• If, for any reason, the property is not sold within 12 months, the entire outstanding balance becomes immediately due.
• On completion of the sale the solicitors handling the conveyance must discharge the charge and release funds to me first.

Deliverables
1. A clear, plain-English loan agreement setting out the above terms, borrower and lender details, and any ancillary clauses (costs, governing law, dispute resolution).
2. The correct Land Registry charge documentation (e.g., Form CH1 plus any required certificates) ready for signature and registration.
3. Brief, step-by-step filing instructions so I can lodge the charge quickly or pass it to my solicitor.

I expect a turnaround of about a week and will happily answer any factual questions straight away so you can draft without delay.