Cash loan to a friend,

Candyapple

MrBluesky wrote: »

Thank you for the advice,

My friend is retired and is unable to get funds from the usual outlets and have maxed out their credit cards.
I also believe there are several charges (apart from a mortgage provider) on their property,so if it went that far i would be low on the pecking list.
Their property is being sold after renovation (they are moving abroad and have a property abroad). friend has told me i will get my £18k back plus £6k when they sell although the £6k incentive is attractive,i have now decided to contact a solicitor when back from my holiday.
If ( when) the solicitor finds excessive charges on their property or any other negative information then i will my back out of the loan.

Thank you for the heads up.

Do not be blinded of promises of this £6k bonus gift which will more than likely never materialise.

Your friend sounds desperate. Desperate people do desperate things to survive. Do not get sucked into their business. I beg you, please read the links I posted. Those are real people with real life experience of situations with often people closest to them - best friends, family members even, and they all have one thing in common - they have all been lied to and screwed over.

You really do not need to waste even more money on consulting with a solicitor - JUST DON'T DO IT!!

All you need to do is say to your friend that your money is tied up elsewhere right now and leave it at that. If they truly are your friend they will leave it be. If not, watch them give you another sob story or increase the mythical bonus gift to try and lure you in.

ScorpiondeRooftrouser

This is of course crazy under any circumstances.

What gives me particular pause however is why are they not selling now?

That would mean that they are expecting your £18K investment to raise the value of the house from what it is now by in excess of £30K; otherwise, why bother? They'd only make £6K from that after paying you; hardly a profit worth asking a friend to put his neck on the line for.

I suspect that they can't currently sell it as it won't cover the mortgage and charges. The chance of your £18K raising the value enough to pay off all those, repay you your investment (which is last on the list) and pay you a profit would seem to be negligible.

midnight_express

Watch Judge Judy. Don't lend the money.

PeacefulWaters

Your friend is screwed.

Don't lend.

foxtrotoscar_2

So the friend has no money, has maxed out all their credit cards, has several charges registered against the property, he can't get a loan from his bank, the property is mortgaged and he is going abroad after the sale.

OMG!

BTW I have some magic beans PM me for details of price....but as an incentive I'll give you 24 for the price of 18.

AndyPix

^^ Dont listen to this - My magic beans are more magic,
and as i am moving abroad the instant i sell them, you can have all 50 for the price of 18 !!

Robisere

You have been given sound advice here in reaction to the further negative facts you gave in your last post. If you still decide to proceed with a loan to this friend, I sincerely doubt your sanity.

MrBluesky_2

Thank you for the interesting replies,

Had a chance to chat with my friend and they have explained they were recently contacted by their council and were told their windows and house colour had no planning permission (its a listed building in a conservation area) .
They purchased the property 11 years ago with the said windows and house colour,.it looks like the legal eagles have dropped a clanger,friend tells me they were doing ok with their renovations and on course to finish next month.
They think selling the property with no planning or conservation consent will be a problem to many buyers and put many off unless they drop the price,an estate agent has suggested they reduce the asking price by £50k.
So they need the extra cash to comply with planning permission and conservation rules.I have had a walk around their house and its in excellent condition and currently estimated on zoopla at £750k neighbouring house sold for £825k last month.
Were going to visit a solicitor on Monday re the loan,so should have more info then.

Thank you,again.

PeacefulWaters

MrBluesky wrote: »

Thank you for the interesting replies,

Had a chance to chat with my friend and they have explained they were recently contacted by their council and were told their windows and house colour had no planning permission (its a listed building in a conservation area) .
They purchased the property 11 years ago with the said windows and house colour,.it looks like the legal eagles have dropped a clanger,friend tells me they were doing ok with their renovations and on course to finish next month.
They think selling the property with no planning or conservation consent will be a problem to many buyers and put many off unless they drop the price,an estate agent has suggested they reduce the asking price by £50k.
So they need the extra cash to comply with planning permission and conservation rules.I have had a walk around their house and its in excellent condition and currently estimated on zoopla at £750k neighbouring house sold for £825k last month.
Were going to visit a solicitor on Monday re the loan,so should have more info then.

Thank you,again.

That's very generous of you.

But I still think you're nuts.

maisie_cat

My husband had a life long friend, he split with his wife and we lent him money that we borrowed from our mortgage headroom. Several months later the friend manufactured an argument with hubby and we never saw him or the cash again!
Think of it as the price to establish how much of a friend they are!