56 year old homeowner can get a loan?

barbarawright

Has he actually tried his bank? And even if he doesn't get a loan, they will have a small business advisor (or the local council will have something similar). I'd have thought a business plan essential. Surely he's going to get a second opinion from someone with business know-how?

Not sure what the relevance of him not having a degree is.

chalkie99

My suggestions would be:

1) Get your son to do a proper business plan and approach a bank in his own right with a view to getting a loan in his own name offering you as a guarantor via the security of your home.

2) Start the business yourself, approaching your own bank for a business loan with the home as security. Have a proper agreement drawn up with your son whereby a percentage of profits go to you as repayments of the loan until such time as the loan is settled and control of the business is passed to your son.

Either way a business plan is needed for the lender who can look at things without the rose tinted glow of "gimme the money enthusiasm or family felt loyalties.

However, my gut feeling is that there are very few low risk businesses that pay back that amount of money in a short time. if there were then everybody would be doing it.

I also have to wonder what he has been doing for those years abroad and why he doesn't have money of his own to invest.

In my own particular line of business I see a regular flow of new entrants who spend that sort of money believing it to be the route to riches without knowing a fraction of what is involved and having failed to research their venture properly. I understand you just want to help your son but please don't be swayed by his enthusiasm without at least getting neutral, professional advice first.

Finally, entertain yourself for an hour with the "Lending to Friends and Family" thread at the top of this page.

CLN

Ok well the business is property renovation, he and his wife are planning a "property ladder" style project together in Turkey where they are currently living, he already has 10,000 in his own money, and his wife 35,000 which is on loan to her in her country but obviously even is this country where property is so cheap it is not enough for what they would like to do. Of course there are small risks of loosing SOME of the capital but even in this situation they have their own money to cover such losses, so unless a huge earthquake brought the house to the ground then it is a relatively risk free venture. However, as I mentioned my son has not lived in the UK for many many years, so can you even imagine the banks reaction when he fianlly pops back just to get some money and take it out of the country?

Anyway, getting a business loan in my name COULD be a possibility but I think it would be much more difficult, and I doubt they would give me the money to buy a property abroad anyway.

Now do you understand my situation?

Btw I found a website called moneysupermarket.com. Does anyone know about this website or others like it? Are they useful? Can they be trusted?

I also heard Tesco offer very cheap and easy to get homeowner loans.

Emmzi

higher risk loan than usual as you also have exchange rate risk. No bank will touch it if you are honest about the reason. It's fraud if you are not honest. Not good, is it?

AMILLIONDOLLARS

So your son has No intention of returning to the UK. How was he going to arrange repayment to you for this money? Also consider exchange rates etc. Property style ladder suggest that they would be climbing the property ladder not selling and releasing the profits straightaway. How long would you have to wait to get your money back??

AMD

sassy_one

The OP is a very daft person if they go a head with this.
Reading through this thread I'm inclined to believe this is a spammer as no one in their right mind would risk their home in the current circumstances.

I can see, if this is true, it all going pear shaped within months, one payment will be missed then another, charges will be applied and it'll all snowball on top of the OP, while their son is abroad, and they'll have no house as it would of been repossessed.

Your absolutely crazy if you do this.
I honestly hope no bank gives you the money, there's lower risk circumstances people apply for loans and don't get them even on higher incomes than yours.

This maybe isn't what you wanted to hear but I won't dress up the fact your going to get your fingers burned unless you back out of this.

DCFC79

CLN wrote: »

No offence but I am smart enough to know the risks involved in this.

sassy-one wrote: »

The OP is a very daft person if they go a head with this.
Reading through this thread I'm inclined to believe this is a spammer as no one in their right mind would risk their home in the current circumstances.

I can see, if this is true, it all going pear shaped within months, one payment will be missed then another, charges will be applied and it'll all snowball on top of the OP, while their son is abroad, and they'll have no house as it would of been repossessed.

Your absolutely crazy if you do this.
I honestly hope no bank gives you the money, there's lower risk circumstances people apply for loans and don't get them even on higher incomes than yours.

This maybe isn't what you wanted to hear but I won't dress up the fact your going to get your fingers burned unless you back out of this.

AMILLIONDOLLARS wrote: »

So your son has No intention of returning to the UK. How was he going to arrange repayment to you for this money? Also consider exchange rates etc. Property style ladder suggest that they would be climbing the property ladder not selling and releasing the profits straightaway. How long would you have to wait to get your money back??

AMD

Look you 2;), the OP is smart enough to know the risks involved as quoted above

DCFC79

CLN wrote: »

Ok well the business is property renovation, he and his wife are planning a "property ladder" style project together in Turkey where they are currently living, he already has 10,000 in his own money, and his wife 35,000 which is on loan to her in her country but obviously even is this country where property is so cheap it is not enough for what they would like to do.

Can they not borrow more in turkey or why dont they start off with a smaller property and go on from there ?

Of course there are small risks of loosing SOME of the capital but even in this situation they have their own money to cover such losses, so unless a huge earthquake brought the house to the ground then it is a relatively risk free venture. However, as I mentioned my son has not lived in the UK for many many years, so can you even imagine the banks reaction when he fianlly pops back just to get some money and take it out of the country?

Anyway, getting a business loan in my name COULD be a possibility but I think it would be much more difficult, and I doubt they would give me the money to buy a property abroad anyway.

Now do you understand my situation?

You may have had an answer at an earlier stage if you had explained the whole situation in the first place rather than have us guessing,

Btw I found a website called moneysupermarket.com. Does anyone know about this website or others like it? Are they useful? Can they be trusted?

Yes moneysupermarket.com is a reputable site although i believe they dont deal with loans for overseas property but i could be wrong

I also heard Tesco offer very cheap and easy to get homeowner loans.

Again I dont think the loans tesco offer are for overseas purchases, not entirely sure on the technicalities of taking out a loan and move it out of the country.

Just a few bits

CLN

Thank you mse for the most useless information I have ever received on any forum over the years... not to mention all the insults. I did not once ask for an opinion on if this was a good business deal, why on earth would I ask people who do not even know the full story or the people involved. I only asked the best course of action to borrow this money under my difficult circumstances would be. I will continue my research on my own. Thankyou and goodbye.

DCFC79

CLN wrote: »

Thank you mse for the most useless information I have ever received on any forum over the years... not to mention all the insults. I did not once ask for an opinion on if this was a good business deal, why on earth would I ask people who do not even know the full story or the people involved. I only asked the best course of action to borrow this money under my difficult circumstances would be. I will continue my research on my own. Thankyou and goodbye.

Please tell us what reply you were expecting ?

There might be loan companies who specialise in loans for property overseas but ive no idea if they exist but you can research that yourself.

Its already been said if you were to lie on a loan application it could have serious consequences if you were found out but its for you to decide whether to take the risk.