Cousin wants a charge over my property

BritRael

dopester wrote: »

...It sounds like the lending cousin thought he/she was cleverly lending to buy at the bottom of the market with the £100K. Then he/she expected the cousin who accepted the money to remortgage when natural HPI returned and the banks restarted joyfully handing money out again to all askers... house prices doubling every seven years as per normal, giving his/her money back....

'Cleverly lending..at the bottom of the market...'. What's 'clever' about that in this situation??

He/she was only lending with the agreement to get the money back in 6 months. Therefore, he/she was only ever going to lose (due to loss of interest - unless they had an agreement for some form of reward) and the only one who stood to gain was the OP. Very clever that...

dopester

BritRael wrote: »

'Cleverly lending..at the bottom of the market...'. What's 'clever' about that in this situation??

He/she was only lending with the agreement to get the money back in 6 months. Therefore, he/she was only ever going to lose (due to loss of interest - unless they had an agreement for some form of reward) and the only one who stood to gain was the OP. Very clever that...

On the expectation and condition the OP would be able to get a mortgage/remortgage for £100K to repay them. The lenders won't allow it, so how is the OP supposed to fulfil their side of the agreement? By magic?

Also the property is now worth less than when the £100K was paid.

So... this "risk free strategy" for the lending cousin, with only the loss of interest on £100K for 6 months, hasn't proved exactly risk free has it.

It seems to me the OP is now trying to sell it, wanting £100K so as to repay lending cousin but not getting offer of £100K+ from the market... it sounds to me like they have been exploring other options to repay the lending cousin.

The lending cousin telling them to refuse £95K offers. So let's say OP does refuse the £95K offer. What happens when the next best offer in 6 months time is £70K? Tell me that.

Instead of being able to repay the lending cousin £95K (or say £90K after fees), in 6 months time could the lending cousin panic and insist they accept a lower offer. OP is now only able to repay them £60K... brought about because they've had input into refusing £95K offer? Does that mean the OP is held to owing tens of thousands of pounds more to the lending cousin after their insistence of not accepting £95K.

POST THE KEYS BACK ! IMO. I'd be shocked if the lending cousin could get anywhere with the courts on this one, for getting their whole £100K back. They've gone about creating their own mess, and put the OP in a difficult situation as well. You lend £100K with no formal written contract / agreement, and it doesn't go to plan, then it's not just the borrower who should be made to suffer, imo.

BritRael

^^ I agree with most of what you say (apart from posting the keys back - that's really helpful), however, that's what I said i.e. 'the only one who stood to gain was the OP'.

So I ask again...what's clever about that??

If that's not clear enough for you, let me explain: you said the lender was being 'clever'. As if they were shrewdly lending the money to make a profit, which was clearly never on the cards as they were only ever going to get the money back at best. Assuming the OP got a mortgage and even if the property price increased...

pineapple123

Cant help feeling this all seems abit suss
Why would anyone lend anyone £100,000 who had-

. no savings
. persume applied for a morgage and rejected
. assume that they would recieve all there money back within 6-12 months
. wouldnt purchase the house first, wait for you to get a morgage then let you buy it from them.
. Trust you so much that they didnt get anything written down and see a solicitor
. depart with £100,000 in cash for such a risky non profit return.

Dont get it at all.
Something doesnt add up, did your cousin lend you the money temporary to lose trace of it, or make it inaccessable for some reason.

DVardysShadow

pineapple123 wrote: »

Cant help feeling this all seems abit suss
Why would anyone lend anyone £100,000 who had-

. no savings
. persume applied for a morgage and rejected
. assume that they would recieve all there money back within 6-12 months
. wouldnt purchase the house first, wait for you to get a morgage then let you buy it from them.
. Trust you so much that they didnt get anything written down and see a solicitor
. depart with £100,000 in cash for such a risky non profit return.

Dont get it at all.
Something doesnt add up, did your cousin lend you the money temporary to lose trace of it for some reason.

Well, you do wonder. I am assuming she is too young to really appreciate the value of the money. She could be looking after it for a boyfriend with a flash car, a lot of bling, no job and no need of one either.

Perhaps OP should watch out for visit from boyfriend?