Private loan friend to friend to pay for a lease extension

1246789

Comments

  • I completely agree with Stenwold.
  • Jox
    Jox Posts: 1,651
    Photogenic First Post First Anniversary
    Forumite
    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.
  • chucknorris
    chucknorris Posts: 10,785
    Name Dropper First Post First Anniversary
    Forumite
    edited 8 January 2020 at 3:14PM
    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 birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • foxy-stoat
    foxy-stoat Posts: 6,879
    First Anniversary Name Dropper First Post
    Forumite
    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.
  • chelseablue
    chelseablue Posts: 3,288
    Name Dropper First Post First Anniversary
    Forumite
    I wouldn't even lend £80k to my own husband, never mind just a mate :eek:
  • JimmyTheWig
    JimmyTheWig Posts: 12,199
    Name Dropper First Post Combo Breaker First Anniversary
    Forumite
    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.
  • MallyGirl
    MallyGirl Posts: 6,547
    Photogenic First Anniversary Name Dropper First Post
    Senior Ambassador
    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 Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
    & Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected].
    All views are my own and not the official line of MoneySavingExpert.
  • chucknorris
    chucknorris Posts: 10,785
    Name Dropper First Post First Anniversary
    Forumite
    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 birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • 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.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.2K Banking & Borrowing
  • 249.8K Reduce Debt & Boost Income
  • 449.3K Spending & Discounts
  • 234.4K Work, Benefits & Business
  • 606.7K Mortgages, Homes & Bills
  • 172.7K Life & Family
  • 247.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards