Friend to Friend Loan - Needed in Writing for a Mortgage

da_rule

I would also pay the money to the solicitor and get him to sign a declaration that he will only release the money to the seller of the intended property and for no other reason (unless the sale falls through which hopefully it won't). Just that way you haven't got to worry about dealing with any transfer of funds. The solicitor can transfer the loan from the friend and the mortgage advance in one go on completion.

getmore4less

There is no need to change the will,
(costs money)

A Debt gets paid out first before the benificiaries anyway.

Just make sure the are the correct extra terms over the 4 year payment to make sure it is payable at the appropriate time, and include the option for overpayments.

As long as the amount to be paid back is the same as the amount borrowed no tax implications.

Zelfer

getmore4less wrote: »

There is no need to change the will,
(costs money)

A Debt gets paid out first before the benificiaries anyway.

Just make sure the are the correct extra terms over the 4 year payment to make sure it is payable at the appropriate time, and include the option for overpayments.

As long as the amount to be paid back is the same as the amount borrowed no tax implications.

i was just looking into that and raised the query with ( but not instructed) my solictor and executor of the will to see what they thought,.
It's why i thought just having the letter/agreement in place would cover us.
Thanks for the pointers on what to include in the agreement, - I already had:
1) Date of Loan
2) Payment Schedule.
3) Right to Overpayment (from debtors)
4) Right to termination with due notice (from lendee)
5) Earliest Termination date (from lendee)
6) Agreement on repayment if house is sold
7) Purpose of loan ( For information only)
8) Confirmation that this is not secured.

Anything else ?

Thanks.

da_rule

Confirmation that the loan is not subject to any fees or interest?