Buying without Estate Agent

holly_hobby

If you can not obtain a lenders/sol permission for this -

the only way I can think of you getting your private loan back - would be to pch the property and provide the monetary deposit yourself, then post completion (if the vendor is not buying another property or has an os mge, or there is sufficient capital os after redemption of his mge), to then as a seperate transation repay the cited 20k owed from the capital he has recd in relation to the sale.

The lender has a legal requirement under money laundering regs (as does the Solicitor) to determine the source and format of all deposit capital, vendor deposits/discounted pch prices are no longer allowed as they are, and have been, open to mis-use.

You need to start making some calls to see where you formally stand with this.

Hope this helps

Holly

Senior_Paper_Monitor

Processing without an estate agent is both sensible and perfectly doable.

The deposit issue is very real - and the circumstances of the vendor may also be a real issue. My guess is (and no offense meant) that he is in serious financial trouble and this exercise is to protect his debt to the OP. This may have a number of implications as it may effectively be a sale of assets below realiseable value and/or preferential to one creditor - take very clear legal advice on the transaction for both parties before proceeding.

GMS

OMAR wrote: »

Well what if the vendor just gives me a cheque which I use....to pay my solicitor/his solicitor......which in turn is just going straight back to them as I am buying their house?

Why would the Lender need to know technically.....?

Not telling the lender would be fraud.

Deposit monies must be cleared funds with the solicitor prior to exchange, unless there is an agreement from the lender to complete with no deposit, i.e from vendor equity.

If you have proper documentation of the loan you advanced to yoru friend then put it to the lender. If not then I cannot see how you can proceed.

Anybody could say that the vendor owes them money. Lenders will not go for that, it would need to be proven

OMAR

surely there must be a way around it......

GMS

OMAR wrote: »

surely there must be a way around it......

If your story is true then you do not need a way around it.

Usually 'ways around it' are fraudulent. You have been given sound advice by several people. Unfortunately it has not been the answer you want because it is not possible.

Do yourself a favour and steer clear of any dosgy transaction. It will cause you serious issues in the future

holly_hobby

OMAR wrote: »

surely there must be a way around it......

If its not legal, then I am afaid you won't get advice or support here.

I go back to my first post ... you need to ask a lender how they will view the deposit issue.

If they will not accept it as repayment in kind for a personal loan transaction (and/or you can't substantiate the os loan), then you have already recd advice on this, and how you may go about having your 20k loan repaid by the vendor..

The facts are the facts I am afraid ....

Hope this helps

Holly

Yorkie1

Note cross-posted

https://forums.moneysavingexpert.com/discussion/3446727

holly_hobby

Senior_Paper_Monitor wrote: »

Processing without an estate agent is both sensible and perfectly doable.

The deposit issue is very real - and the circumstances of the vendor may also be a real issue. My guess is (and no offense meant) that he is in serious financial trouble and this exercise is to protect his debt to the OP. This may have a number of implications as it may effectively be a sale of assets below realiseable value and/or preferential to one creditor - take very clear legal advice on the transaction for both parties before proceeding.

Excellent point raised by SPM

If the Vendor is plotting his path to Bankruptcy, and the disposal of this asset is less than market value (whilst poss assisting you in the avoidance of Stamp Duty Lant Tax (SDLT) at 1% above 125k), may leave him in v serious trouble.

If the Trustee in Bankruptcy believes the sale, to be a "disposal of assets at undervalue" - this is a bankruptcy offence - which will be punshable by the imposition of a Bankruptcy Restriction Order/undertaking (BRO) on the Bankrupt themselves - which may be effected for a term anywhere between 2 - 15 yrs (the term awarded being in accordance with the severity of the offence committed).

Now, this may be of absolutely no concern to you - but IF the Vendor is a friend, I would feel duty bound to alert them to such penalties.

Hope this helps

Holly

holly_hobby

Yorkie1 wrote: »

Note cross-posted

https://forums.moneysavingexpert.com/discussion/3446727

Thanks Yorkie ...

OP - one thread for one subject please ....

H

OMAR

i posted on both forums......the same issue....more people = more advice lol