Money lent to son

svain

onwards&upwards wrote: »

Those are completely different situations.

A more like for like comparison though would be if he agreed family could live in his second house for 30 months, never mentioned rent, then wanted to start charging it partway through the agreement.

Remove the argument that terms should of been set at the beginning (i agree with that) ... there is little difference, both scenarios are investments/income that the OP will be losing out on.

Some people are suggesting that because the loan is to family it is somehow disloyal/out of order/immoral to charge interest (even interest the OP may be losing out on) ... My argument is if these people had a second property that provided them with an important part of their income would they still feel the same? .... now unless they are very wealthy where the income is irrelevant or not "well off" enough to ever be in that posoition, they cant possibly judge the scenario objectively .... my guess is the people jumping the most on the idea of charging family members are very much in the latter camp

jackieblack

svain wrote: »

My argument is if these people had a second property that provided them with an important part of their income would they still feel the same? .... now unless they are very wealthy where the income is irrelevant or not "well off" enough to ever be in that posoition, they cant possibly judge the scenario objectively .... my guess is the people jumping the most on the idea of charging family members are very much in the latter camp

Ahh... but you didn't say that

svain wrote: »

Im assuming these same people so against charging interest (i agree difficult now as should of been agreed at the beginning) would not charge their family rent if you had a second property they were living in??

And neither did the OP give any indication that he was relying on a return from the lump sum lent to his son as an important part of his income...

flanker6

No to the interest . . . it wasn't agreed at the time of the loan.


But why is he paying it off in one lump sum? Is he waiting for some money spinning event? e.g. sale of a house.
Or is he saving it up, getting paid interest - and having the security of a lump sum in the bank - and going to give this all to you when he has the final balance?


If the latter, I'd request that he pays off the loan with more regular payments.

Pollycat

I really don't think the OP is coming back to answer any questions.

TBagpuss

OP, it's unfortuante that you didn't discuss interest when you lent the money. Is your son expecting to pay some now?

If so, then I would suggest that you look at whare you were holding the funds before you lent them, and what interests you would have had if you'd kept the funds there, and suggest that he pays you wahtever you would have earned. That way, you are not out of pocket, and he will, most likely, be paying for less than if he had borrowed the money from a commercial lender.