Loan to a friend

amart24

I am in an unusual situation - I own a maisonette leasehold but the Freeholder to the property is - shall we say difficult. We just had a huge amount of building work on the property which I paid for. She will only now pay the builder and not me. Meanwhile the builder had a financial problem as one of his employees sabotaged a job and it has taken him 2 years to get the insurance company to pay. I need him to be solvent to get my money back from the Freeholder. He is an old friend and always has been helpful so - if an when she pays him back - I want him to be able to pay me in smaller amounts over time. I want him to get insurance in case anything goes wrong with his business so I won't be out of pocket in case of a disaster. Can anyone tell me what kind of insurance he could get and where. Many thanks.

leespot

The builder should be giving you the money straight away - especially if he's an old friend?

I'm not sure there is such a product to protect you against a company you don't own, or an individual going bust.

Caz3121

The builder has done the work and been paid for it - by you
The freeholder will not refund you for the work but will pay the builder for it directly
The builder will now have been paid twice for the same job
He gets the money from the freeholder and transfers it straight to you.

If you want to loan him the money as a friend to pay you back over time I doubt there an insurance that would cover you...you carry the same risk as anyone else lending money to a friend

another_casualty

I could be completely wrong here and with hindsight etc , but if there is something that needs doing surely it's the freeholder who should be taking care of all this ??
A bit late now I fear , but what does the conditions of your lease say ?

amart24

sorry - I should have been clearer - I would ask him to take out the insurance. He is still trying to get the rest of his money from the insurance company and he is short of money. if his business goes down the freeholder won't pay him and therefore I won't get my money.

amart24

yes you are right but she is so difficult and not quite the full ticket so it would have caused worse problems to have involved her.

amart24

Thank you to all of you who have replied. I much appreciate it.

27cool

The intricacies of peoples finances on this forum never cease to amaze me.