Casual loans between friends

dancingdoll

A few years ago my Dad lent quite a large amount to a friend. This is something I've just recently found out. My Dad is approaching quite a vulnerable stage of his life, so is possible he could forget about this debt.

I've spoken to his friend and he's told me how much he's borrowed and that he intends to give it back when he sells his house. They seem to have quite relaxed understanding, nothing on paper! So I want to make sure he does give the money back.

What's the best way to approach this? Does anyone have any experience? I guess I'll need to draw up some sort of contract for him to sign saying I'll pay you £XXXXX on the sale of my house.

Are there any model contracts anyone has seen or any further advice?

Thanks!

MABLE

Before you do anything speak to your Dad. After all it is between himself and the borrower. Any uneccessary intererance by you may upset the apple cart.
If you still want to go ahead Staples (stationers) have alot of legal contracts and no doubt one to fit your case.

greyteam1959

If the amount is over £1000 never mind Staples and do it yourself legal forms.
For heavens sake go and see a solicitor or you a just heading for big problems.
You can see a solicitor for initial advice and an estimate of the cost at no cost to yourself if they are areputable firm
YOU MUST TAKE LEGAL ADVICE

mountainofdebt

As already been mentioned I would frstly raise the issue of getting something in writing regarding the loan with your dad - after all he may not thank you for getting involved, regardless of how good your intentions are!

You also need to tread carefully as far as the friend is concerned as well, becuase whilst he has initially acknowledged the loan, if he thinks you are going to push the issue then he may just decide to deny that it was a loan and was a gift instead.

Perhaps you could play the 'look something may happen and the friend won't be in a position to confirm that it was a loan and thus the money wouldn't get repaid angle' with your dad and your friend as this will seem less confrontational

I also suggest that whether it is a professional drawn up document nor not, then the signatures are witnessed by an independant person so there can be no accusations of pressure being applied to either party.