Loaning £20K.

heathcote123

BobbyMcDougall wrote: »

Have you got next week's lotto numbers in that crystal ball of yours too?

Isn't it obvious that with the banks printing lots of new money, and with governments in a race to devalue their currency, that house prices will definitely 100% go down?

geoffky

BobbyMcDougall wrote: »

Have you got next week's lotto numbers in that crystal ball of yours too?

No i have not got a crystal ball because all the fools who told me it could never happen and then took out 120% mortgages stole them from me in 2008...;)

JuicyJesus

sharpy2010 wrote: »

Useless post.

How so? If someone came on wanting to do something as plainly idiotic as giving themselves a trepanation with a cordless drill, people would be quite right to warn them off doing something so utterly stupid. Whether you should go for Black and Decker or the cheapo B&Q own brand, or whether the drill bit will hold up, is irrelevant. The original idea is stupid and will only lead to misery. The same principle applies here.

The OP has yet to answer, and is probably in denial about the real answer to, the question of how exactly someone who needs to borrow £20k now will find that plus an extra £2.5k in the space of a year.

AMILLIONDOLLARS

Here's my 2p worth.

1. Firstly the OP and his friend will have to declare the deposit a loan to the lenders, as the OP is having legal papers drawn up to provide proof the money was lent and not a gift.

2. Declaring this loan will not go down well with the lenders, as this will be an indication that there is another investor in the property and that the friend really can't afford the mortgage as she has other borrowing commitments - so mortgage may well be refused.

3. If they pass this mindfield, the next tricky part is, should the OP friend default and she takes them to court, they may well be awarded just £1 a week for the rest of their lives, A Charging Order may well be asked for, but if this house is the person's main residence, I don't think any judge would rule to make the friend homeless, therefore the above £1 may come into play.

4. I think the thing foremost in the OP mind is the £2500 interest they may possibly make from the deal. There is an old saying, when something seems too good to be true, it normally is. Greed gets them all the time! Just remember nothing is guaranteed, even if it its written in legalease!!!!

Good luck

AMD

vincentt

mollycat wrote: »

Thanks for your reply Flat Eric.

In response to your query; sorry, other than the information in the OP im not prepared to discuss the arrangement.

I have researched what paperwork i need to set up though.

Thanks.

why would you ask for people's advice if you have not given them the full story?

very risky, i would never mix family / friends and money.

Cherryjack

mollycat wrote: »

Thanks for your comment. It's a valid point.

Im leaving this thread alone now.

Thanks to all who contributed, its very much appreciated.

I'm would be quite happy to re-post in 18 months time when our agreement is over and i have a £2500 return on my investment (with tax to be paid ), but i appreciate that would probably not be noteworthy.


Thanks very much for all your time.

it wont happen.. yl be too embarassed to post aswell... bad move 20k gone!

mollycat

Cherryjack wrote: »

it wont happen.. yl be too embarassed to post aswell... bad move 20k gone!

Not as embarrassed as I would be, if like you i'd started 10 threads in the past 3 days, the content of which suggests you shouldn't be having a pop at my financial decisions and making assumptions about someone you don't know.

Good Luck now

JuicyJesus

mollycat wrote: »

Not as embarrassed as I would be, if like you i'd started 10 threads in the past 3 days, the content of which suggests you shouldn't be having a pop at my financial decisions and making assumptions about someone you don't know.

Good Luck now

If he can't have a pop at your financial decisions, can I?

You're going to lose your money.

Sambucus_Nigra

JuicyJesus wrote: »

If he can't have a pop at your financial decisions, can I?

You're going to lose your money.

Don't be so ridiculous.

tell_it_how_it_is

Each to their own I guess, but always a risk, and someone promising you a whopping 8% interest and agreeing to pay you back £1250 a month - on top of the mortgage itself and general living costs - would not sit comfortably with me personally.

If that person does start to get into difficulties, you'd no doubt be the first one to start seeing reductions on, or missing of, payments. Could you cope okay with that scenario?