Personal loan to a friend

sibull

Please could someone advise me as to the validity of the following clause in a contract covering a personal loan from myself to a friend. My question is would this cover both of us in the event of the death of either,ie would the loan/debt carry over to the relevant heirs?

Binding Effect
This Agreement will pass to the benefit of and be binding upon the respective heirs, executors, administrators, successors and permitted assigns of the Borrower and Lender. The Borrower waives presentment for payment, notice of non-payment, protest, and notice of protest.

Arleen

You cannot bind other parties with your contract. And don't loan money to friends and family, either gift it or don't do it.

Candyapple

Don't do it!!

Read these threads, there are numerous ones on here, all with the same ending.

https://forums.moneysavingexpert.com/discussion/5442637
https://forums.moneysavingexpert.com/discussion/76953

If you are going to give the money, do it in the knowledge that you won't see the money again and are giving a gift. That way if you get the money back, great. If you can't think of the situation like that, definitely do not lend a penny.

DCFC79

Your brave for wanting to help your friend. Not something I would advise you to do but if its what you want to do then I wish you luck.

Are you aware of the pitfalls of mixing money and friends ?

ReadingTim

If you can't afford to lose it, don't lend it.

Just...don't.

PeacefulWaters

An unfair and unenforceable condition.

If you're stupid enough to lend take out a life assurance policy on the borrower.

By the way, his estate would still owe you the money if he died with assets.

Your estate would still be owed the money if you died.

Silvertabby

Further to PeacefulWaters, if he died with more debts than assets, then debts have to be repaid in a very strict pecking order - ie, you may find that the money has run out before getting to you.

If he is asset rich, then why is he borrowing money from you in the first place ?

pvt

Don't lend money to a friend, it's just an expensive way of losing a friend.


And if you lose the friend because you won't lend them this money, then consider that was a cheap way of finding out what sort of friend they really were.

prowla

I once lent money to a friend.
I got some of it back.
Some time later I had a period out of work.
The friend went on a holiday.
I never did get it all back.

iolanthe07

I agree with others here. If you can't afford to lose it, don't lend it.

ViolaLass

So if the friend's estate can't afford to repay the loan, you want an heir, who might have inherited two books and a chair, to have to repay it?