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Private loan friend to friend to pay for a lease extension - Page 4

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Private loan friend to friend to pay for a lease extension

edited 8 January at 12:41PM in Loans
82 replies 4.2K views
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Replies

  • noobinvestornoobinvestor Forumite
    36 posts
    I completely agree with Stenwold.
  • JoxJox Forumite
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    Do they live in the property?

    I extended my lease and put my flat for sale in 2016 and it took 11 months to sell due to the brexit vote making buyers nervous. That was with a lot of effort on my behalf getting the flat very presentable and constantly making improvements until we got a buyer at the price I wanted to sell at.

    Who knows what will happen to property prices after Jan 31st?

    I personally think this scenario is fraught and it may take years for you to get your money back and there's a chance you wouldn't be repaid.

    Maybe get legal advice first.
    Debts Mar 2020: Barclaycard cc: £3954, Santander cc: £2111, Sainsburys cc: £2129, MBNA cc: £3800, Mortgage: £216,900
    Emergency fund: £5051
    Aiming to pay off credit cards by Dec 2021 or sooner!
  • edited 8 January at 4:14PM
    chucknorrischucknorris Forumite
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    edited 8 January at 4:14PM
    garth549 wrote: »


    This is by far the best advice here. Purchase it yourself, discounted, with the lease extension being part of the contract. You're then only vulnerable to a drop in market value.

    This would be a nightmare for me, after 29 years of being a landlord I am really fed up with property and have recently been selling my own properties.

    Plus on the financial side, if I bought their flat, I would have to pay stamp duty, solicitors fees (both buying and selling) and estate agents fees plus other miscellaneous costs for a flat that I definitely do not want.
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    I've started running again, after several injuries had forced me to stop
  • foxy-stoatfoxy-stoat Forumite
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    You sound like you have already made your mind up, see you again when you ask how to get your £85,000 back and force a sale in a year or so.
  • chelseabluechelseablue Forumite
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    I wouldn't even lend £80k to my own husband, never mind just a mate :eek:
  • JimmyTheWigJimmyTheWig Forumite
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    zx81 wrote: »
    For the reasons given above. Not selling, bankruptcy, loss of value.
    Not selling - The OP has said they will only proceed if they are able to force a sale if needed.
    Bankruptcy - If the loan is secured on the property then the OP will get their money back, surely?
    Loss of value - Seems ever-so unlikely to fall below what would be needed.

    Whether they would be able to force a sale, I have no idea.
  • MallyGirlMallyGirl Forumite, Board Guide
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    new thread today about a loan to a friend that they thought was all sealed up tight with a charge on the house etc.

    If they are a good friend now they are unlikely to be after this.
    I'm a Board Guide on the Debt-free Wannabe, Loans & Credit Cards boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Board guides are not moderators and don't read every post. If you spot an inappropriate or illegal post then please report it to [email protected]
    Any views are mine and not the official line of MoneySavingExpert.com.
  • chucknorrischucknorris Forumite
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    Not selling - The OP has said they will only proceed if they are able to force a sale if needed.
    Bankruptcy - If the loan is secured on the property then the OP will get their money back, surely?
    Loss of value - Seems ever-so unlikely to fall below what would be needed.

    Whether they would be able to force a sale, I have no idea.

    I'm not yet 100% certain either, I do not think that I will be until I take legal advice. It looks like it might be, but I need better evidence from a legal source.
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    I've started running again, after several injuries had forced me to stop
  • [Deleted User][Deleted User]
    0 posts
    MoneySaving Newbie
    I wouldn't even lend £80k to my own husband, never mind just a mate :eek:


    You wouldn't need to. It's his money as much as yours.
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