loan to pay rent

24

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  • Voyager2002
    Voyager2002 Posts: 15,244
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    fly53 wrote: »
    Its not a guarantur she just want to put the loan into someone elses acvount so the lender cant see where its going..
    least thats my understanding.

    In that case she is really not thinking straight...

    The lender will take care to pay the money into an account in her name. The lender cannot possibly see any transactions on her account (unless she is borrowing from her own bank). In any case, a loan for a holiday is less of a risk than a loan to cover rent payments: or is this loan from a charity?

    I have to agree with the other posters: this situation is going to be a disaster for everyone involved, and the friend who allows her to use a 'mule' bank account might potentially face a criminal investigation.
  • fly53
    fly53 Posts: 57 Forumite
    But surely facing eviction is the worse possible scenario?

    I can see her point.

    I agree. The lender wont care aslong as loan is paid. But yes sounds complex.
  • Lungboy
    Lungboy Posts: 1,953
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    How would the lender be able to see where it's going?
  • OP, I hope the "friend" whose account is being (ab)used is not actually yourself.


    She is a financial disaster waiting to happen and please make sure you don't get dragged down with her.
  • Why does she not just move back to parents home now and avoid any further debt.
  • Dobbibill
    Dobbibill Posts: 4,133
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    fly53 wrote: »
    But surely facing eviction is the worse possible scenario?


    She is moving back to parents at the end of the tenancy anyway so the plans she already has just happen a little sooner.
    If she has to pay the rent until the end of the tenancy, she may be able to arrange a payment plan with the landlord once living with her parents so she still meets her obligations.

    Definitely not the worse that can happen.

    This has the potential to spiral seriously out of control, application fraud, mule accounts, prosecution, banks account closed for both her and the 'friend'. Unable to open any other bank accounts for both parties.

    This is the tip of the iceberg.

    I hope you are not said 'friend'.
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  • fly53
    fly53 Posts: 57 Forumite
    Thanks for the feedback.
    hopefully she can surrender the tenancy then.
    It does sound kind of crazy.
  • fly53
    fly53 Posts: 57 Forumite
    Just out of interest. If the landlord refuses..
    wouldnt it be best for both ll and tenant to arrange something thus avoiding court proceedings?
  • boo_star
    boo_star Posts: 3,202
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    My advice would be to take the money to cover her responsibilities up to the end of the tenancy and speak to the landlord about starting a new tenancy in your own name.
  • Dobbibill
    Dobbibill Posts: 4,133
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    fly53 wrote: »
    Thanks for the feedback.
    hopefully she can surrender the tenancy then.
    It does sound kind of crazy.

    She needs to speak to the LL.

    Explain her situation, put forward a plan to move out, still pay her agreement but at a lesser amount per month...yes this may take her longer than the actual end date on the tenancy but it's meeting her obligations.

    The LL may not be particularly pleased with the suggestion at first but this will give them the opportunity to let the property to someone else sooner rather than later.

    The LL may have a mortgage on the property, it will be making up a portion of their income. This will have a knock on effect to them.

    Eg - If they are unable to let the property for 2 months then they will have to fund the shortfall on the mortgage in the mean time. Once a new tenant is in, the arrears your friend will continue to pay will give them the funds to replenish what was missed for the 2 months etc. so while not ideal for them, I'm sure they would rather this than nothing.


    OP - your friend may also want to consider why they are in this situation - has anything changed since they took on the tenancy. Has their income reduced?
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