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    • gazgits
    • By gazgits 8th Nov 17, 12:15 PM
    • 44Posts
    • 1Thanks
    gazgits
    Loan money to a friend
    • #1
    • 8th Nov 17, 12:15 PM
    Loan money to a friend 8th Nov 17 at 12:15 PM
    A family friend has asked me to loan her some money to help her with a house move. She has requested £50000 which she will pay back on the sale of her own property.


    Can anyone please give me the best advice on safeguarding my money if anything should happen to her.
    For example if she suddenly decide not to pay me the money back or if she was to pass away. Whilst I don't expect any of these issues to occur I believe it is better to be safe than sorry.


    I intend to get a written letter signed by both of use as proof of the loan and I will also be paying it direct into her bank account also as proof.


    Any other advice would be greatly appreciated.


    Thank you
Page 2
    • ReadingTim
    • By ReadingTim 9th Nov 17, 9:25 AM
    • 2,147 Posts
    • 3,048 Thanks
    ReadingTim
    Thanks for all your comments. You have certainly given me plenty to think about.
    Originally posted by gazgits
    I don't believe there's anything to think about whatsoever. Look at the overwhelming response in favour of a single course of action: don't do it.
    • Kidder81
    • By Kidder81 9th Nov 17, 10:37 AM
    • 60 Posts
    • 59 Thanks
    Kidder81
    My advice would be to not do it. The only people I would give that sort of money too are my daughter's (when they're grown up).

    I wouldn't expect the money back either. No friendship in the world would make me part with that sort of money, especially under the circumstance described.

    No friend would put you in the position that she has. Tell her to speak to an authorised lender whose business is lending people money.
    • MEM62
    • By MEM62 9th Nov 17, 11:04 AM
    • 1,373 Posts
    • 988 Thanks
    MEM62
    A family friend has asked me to loan her some money to help her with a house move.
    Originally posted by gazgits
    Can anyone please give me the best advice on safeguarding my money
    Originally posted by gazgits
    Yes, don't do it.
    • C_Mababejive
    • By C_Mababejive 9th Nov 17, 11:16 AM
    • 10,294 Posts
    • 9,340 Thanks
    C_Mababejive
    if you really feel you want to help (and i suggest you dont) then suggest as post #9. If your friend doesnt want/like that then dont do it. Otherwise you will have NO security and your money could disappear forever.
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
    • enthusiasticsaver
    • By enthusiasticsaver 9th Nov 17, 11:42 AM
    • 4,689 Posts
    • 8,796 Thanks
    enthusiasticsaver
    I cannot imagine any circumstance that a friend would ask to borrow £50k from me. How on earth does your friend even know you could put your hands on that sort of money?

    If she is in a good position to sell than a bank bridging loan may be an option but unless she is on a good income very few banks will offer an open ended loan so if they do not think it is a good risk why would you?

    Others have said that friendships have been lost through loans never repaid. Supposing she disappears off with your money and you never see her again. There is no legal document to enforce repayment unless you get one drawn up by a solicitor which will cost and you would have to go to court to force repayment and even then she may find a way to avoid repaying it. If she wants to buy this flat so much tell her to drop the price of her house to sell it quickly. That is what most of us do.
    4 weeks to go until early retirement in December . Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
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