Lending money to family member

Pollycat

HappyMJ wrote: »

I would buy the "secured item" in your name and rent the "secured item" to your family member and if they refuse to make payments just get the item back.

Grumpelstiltskin wrote: »

And how would you enforce that if they refused to hand it over?

Send the boys round?

.................

JasX

+1 This is without exception a terrible idea unless you are genuinely happy to never see any of the money again (ie view it as a gift) and never seeing the money again will not harm your relationship with this family member

As others posted above the number of people re-appearing on other sections of this board having

a) not had the agreed payments stuck to then see completely stop
b) completely fallen out with family member (and extended sections of family in the fallout) trying to chase payment

is common whereas the number of people piping up in those threads "I did this and it worked" is around zero

If someone in financial difficulty needs to borrow money it won't solve their difficulties or suddenly improve their ability to manage their spending/stick to a buget and you'll end up on the receiving end of their 'difficulties paying things back' soon enough

If no mainstream lender will lend to them this is usually a good indication of the above

Even if you get a legally watertight formal agreement (you probably won't) you'll just be at the end of a long line of other creditors not getting paid anything because the individual has no money

Until they eventually go bankrupt and you get swept up in that and then they don't even legally need to pay you back

So just to summarise the running theme... "It's a really really bad idea, don't do it"

...and don't act as a guarantor for them either as that puts you in an identical position (Guarantor = legally you're basically borrowing the money to gift it to them and *will* need to pay back the loan "In full with penalties" yourself when they don't)

JasX

PS, not forgetting you may need to fight other creditors in the courts for anything you've tried to 'secure' your loan on

Petra_70

JasX wrote: »

+1 This is without exception a terrible idea unless you are genuinely happy to never see any of the money again (ie view it as a gift) and never seeing the money again will not harm your relationship with this family member

As others posted above; the number of people re-appearing on other sections of this board having

a) not had the agreed payments stuck to then see completely stop

b) completely fallen out with family member (and extended sections of family in the fallout) trying to chase payment

is common.

Whereas the number of people piping up in those threads "I did this and it worked" is around zero.

If someone in financial difficulty needs to borrow money it won't solve their difficulties or suddenly improve their ability to manage their spending/stick to a budget and you'll end up on the receiving end of their 'difficulties paying things back' soon enough

If no mainstream lender will lend to them this is usually a good indication of the above

Even if you get a legally watertight formal agreement (you probably won't) you'll just be at the end of a long line of other creditors not getting paid anything because the individual has no money

Until they eventually go bankrupt and you get swept up in that and then they don't even legally need to pay you back

So just to summarise the running theme... "It's a really really bad idea, don't do it"

...and don't act as a guarantor for them either as that puts you in an identical position (Guarantor = legally you're basically borrowing the money to gift it to them and *will* need to pay back the loan "In full with penalties" yourself when they don't)

:T Exactly what I was saying, but put much better than me. :T So many good points in here.

Lending money to family (or friends) is a terrible idea.

countrybelle

Well, thanks everyone for that. No good news here then! It's not that she can't get a loan, it's that her property is not on the register as it is so old so a credit check cannot be achieved. I have spoken with Noddle about it and they confirm that the property is not listed so they cannot provide a credit check. It's been an admin nightmare as the address is rented and therefore we are at the whim of the landlord who is in no hurry to resolve it. Young lady needs a car and has a good salary etc and could not sort it out at the garage because of the admin troubles we have. It's less than perfect a scenario I agree, but feel I should help her out. Sigh bloody kids.

HappyMJ

reneobscene wrote: »

Well, thanks everyone for that. No good news here then! It's not that she can't get a loan, it's that her property is not on the register as it is so old so a credit check cannot be achieved. I have spoken with Noddle about it and they confirm that the property is not listed so they cannot provide a credit check. It's been an admin nightmare as the address is rented and therefore we are at the whim of the landlord who is in no hurry to resolve it. Young lady needs a car and has a good salary etc and could not sort it out at the garage because of the admin troubles we have. It's less than perfect a scenario I agree, but feel I should help her out. Sigh bloody kids.

A car...is that all this is over. Get the bus...save the money then get a car. Car's are not cheap. I don't have one. I walk, get buses and get the occasional taxi. I get my food delivered for £1 on a Wednesday from Morrison's. Everything I need gets delivered. I rarely have an actual need to go out and visit a shop.

I'd actually save the money and get a better property. One which can be used as an address to get credit. I imagine the address is something like 52A High Street and that address does not exist as the property has been split without permission.

terryw

reneobscene wrote: »

Well, thanks everyone for that. No good news here then! It's not that she can't get a loan, it's that her property is not on the register as it is so old so a credit check cannot be achieved. I have spoken with Noddle about it and they confirm that the property is not listed so they cannot provide a credit check. It's been an admin nightmare as the address is rented and therefore we are at the whim of the landlord who is in no hurry to resolve it. Young lady needs a car and has a good salary etc and could not sort it out at the garage because of the admin troubles we have. It's less than perfect a scenario I agree, but feel I should help her out. Sigh bloody kids.

I assume that you mean that the property that she owns is not registered at the Land Registry. I have my doubts if this the reason for refusal of credit.

It is possible to voluntarily register though.

Petra_70

reneobscene wrote: »

Well, thanks everyone for that. No good news here then! It's not that she can't get a loan, it's that her property is not on the register as it is so old so a credit check cannot be achieved. I have spoken with Noddle about it and they confirm that the property is not listed so they cannot provide a credit check. It's been an admin nightmare as the address is rented and therefore we are at the whim of the landlord who is in no hurry to resolve it. Young lady needs a car and has a good salary etc and could not sort it out at the garage because of the admin troubles we have. It's less than perfect a scenario I agree, but feel I should help her out. Sigh bloody kids.

People are not being mean; we are just trying to stop you from making a big mistake.

And I have to say that I have never heard of a house being 'so old it's not listed anywhere!'

My friend lives in a 700 year old property in the sticks that is a mile from the nearest house, and hers is listed. How can a house not be on any records anywhere?!

I would be more likely to believe this if her house was a brand new one. Like 'they finished building it last month' new.

I think she is pulling your leg.

What family member is it anyway?

VfM4meplse

reneobscene wrote: »

It's less than perfect a scenario I agree, but feel I should help her out. Sigh bloody kids.

If you genuinely feel that you should help out, gifting the money shouldn't be a problem. Write it off and if the money comes back to you, its a bonus.

Although I cannot understand people that begrudge helping their children, if they are able to and feel they deserve it.

countrybelle

She's not my daughter, she's my partners daughter, you judge too quickly!