private loan

paulmx3

a family member was selling a house and the person buying it was stalling due to not being able to raise the funds,this was a property developer.

there was an understanding that she would be renting an apartment he had when the sale went through.

It was taking a long time for him to raise funds and he asked her to lend him approx 10k to enable him to secure sufficients financing,this she did as she needed to get the sale through.

the loan was documented and signed by both parties and a witness and he was to pay back £500 per month,she wasnt charging him any interest.

these payments stopped after a few months then he made a few payments of £200 and nothing now for quite a long time,ive only just discovered this.

all in all he still owes approx 8.5k after 2 years.

what is her best plan of action regarding this with the best prospect of her getting her money back,he does has have quite a few rental properties with money coming from them but seems to not want to pay any money towards this loan.

any help appreciated.

zppp

I would say small claims court is the way to go with this one. This is because there is a contract between the parties, and a verifiable witness to the loan taking place.

Have a look at MCOL.

paddedjohn

Does she still rent from him?

peter.sumit

no
this is a chat room

paulmx3

paddedjohn wrote: »

Does she still rent from him?

no she doesnt rent from him anymore,she moved to another property after about 6 months.

opinions4u

See a solicitor. And prepare to never see the money again.

jonesMUFCforever

Having a string of buy to let mortgaged properties means diddly squat if they are all mortgaged to the hilt or in negative equity.
With hindsight she should have put property back on open market and told property developer where to go.
I agree with previous poster she probably won't see the money again - whether she wants to spend more in the hope of getting it back is another matter.

paddedjohn

peter.sumit wrote: »

no
this is a chat room

????????????????????

zppp

paddedjohn wrote: »

????????????????????

Ignore them, already reported them to site team as they seem to be building up their post count to spam site. (Have a look at their other posts)

themull1

How much rent did she pay, and was it by direct debit?

paulmx3

themull1 wrote: »

How much rent did she pay, and was it by direct debit?

on top of the money she lent him she paid 6 months rent in advance,she left his property at the end of the 6 months.

to be honest knowing about it now im quite angry and id be quite happy for her to sell on this loan to mad mickey and his gang to sort out....:rotfl: