Helping out a friend - what are the risks ?

InMyDreams

I think your friend should be very touched but absolutely horrified to think that you would seriously consider putting yourself at such risk as to become financially associated with someone who is not your immediate family or even your partner. Even getting a mortgage with someone who is one of those things can end in horror stories - you only have to read some of the threads on this forum to see what sort of things can go wrong. (And actually, if you went down this route, wouldn't you have to be living in the property too for a residential mortgage to apply?)

As for independently going down the BTL route... this is also not without it's (huge) risks. Would you even consider this if it was not to help your friend out? These are big decisions that could have serious effects on your financial circumstances for the rest of your life. The fact that in the short term you might be able to help out your friend and his current partner should have negligible bearing on whether you embark on a BTL business, however short you think the term is.

If you are in the position of being able to buy a house and think it is a financially sensible thing to do (no comment) then why aren't you doing it for yourself rather than for a mate's partner?

GMS

quixonte wrote: »

This is eating me up inside.....

What if, its changed to a buy-to-let and I have sole ownership ?

As others have said it is not your problem

As for Buy to Let. New build flats are not top of BTL lenders prperty lists so you would not be able to get a mortgage as easily as you think.

Why risk your cash? New build flats are almost always vastly overpriced and you are in grave danger of losing your cash.

chalkie99

Absolutely DO NOT do it!

Remember a friend in need is a PITA. It will end in tears. I am sure there is a big thread on here somewhere about lending money to friends who are now ex-friends.

Jenniefour

Look after your own long term interests - as has been pointed out, should you help out your friends in the ways you are suggesting you are taking action which is immediately fraught with potential extremely serious problems and will affect you for the rest of your life. Your desire to assist your friends is laudible - but do not do anything makes their problem yours.

epsilondraconis

You definitely need to seek legal advice if you are planning on going through with this.

I hope you heed the advice you have already received on here because it is always saddening when the good guy ends up with the shi**y end of the stick.

quixonte

Hopefully he hasn't exchanged and it is just a small reservation fee at risk- I hadn't thought of that.

I am going to be chicken and hope my current lender will have issues with this, will make saying no easier.

thanks for your comments everyone