Interest only* family loan - ideas on what to do on death?

Kayalana99

Answered, thank you.

*SuzySue*

Was it a gift or a loan? If there was a letter saying gift, which you then used to get a mortgage then it had better be a gift. Anything else is fraud and extremely serious.

I suspect that yes, you could be expected to repay all monies owed to your grandad's estate on demand.

globalds

Don't lend the money.

Or lend it from another place ..

How much of the £10 k have you paid back on this original Loan ?

Kayalana99

It was only last year we lent it (so 0 basically)- my Granddad is quite happy to have it forever going because he would rather have the income then the sum, so we aren't under pressure to actually pay it. (Although yes it needs to be paid back)

I'm guessing their is no answer to this question that I am going to want to hear

globalds

income ?

I thought your post described an interest free loan ?

Kayalana99

globalds wrote: »

income ?

I thought your post described an interest free loan ?

Edited that sorry, I am half asleep. Interest only.

globalds

what interest rate are you paying him ?

Kayalana99

I believe it's 6% .. (£50) he's not cheap!

globalds

so you pay £50 a month ?

This is like pulling teeth ..

comeandgo

Is he declaring this to HMRC?

Kayalana99

globalds wrote: »

so you pay £50 a month ?

This is like pulling teeth ..

Yes it is £50, I just believed it to be 6% without double checking - so an extra 2,500 would raise it to £62.50

comeandgo wrote: »

Is he declaring this to HMRC?

Most likey but that's not really my business is it?