Family Loan Agreement Form

LizMac42

We are loaning a family member a sizable amount of money for a house.  I have been trying to find a simple downloadable loan agreement form but they all seem to be American.  Has anyone seen a good UK site for downloading such an item please. 

Le_Kirk

You could try this site: -
Law Depot

LizMac42

Thank Le Kirk  - its one of those where you have to give your credit details for a free download but it was very useful to take a screen-print, do your own  and make sure you have everything worded correctly.

MovingForwards

LizMac42 said:

We are loaning a family member a sizable amount of money for a house.  I have been trying to find a simple downloadable loan agreement form but they all seem to be American.  Has anyone seen a good UK site for downloading such an item please. 

Pay for a solicitor to draw it up and secure it on the property. When a 'sizable amount of money' is involved, you want things done right and with no get out clauses.

tonyh66

MovingForwards said:

LizMac42 said:

We are loaning a family member a sizable amount of money for a house.  I have been trying to find a simple downloadable loan agreement form but they all seem to be American.  Has anyone seen a good UK site for downloading such an item please. 

Pay for a solicitor to draw it up and secure it on the property. When a 'sizable amount of money' is involved, you want things done right and with no get out clauses.

THIS, a homemade legal agreement is probably not worth the paper....

GrumpyDil

Probably better asked on the house buying etc board. However I agree that you need to be very careful about making sure any agreement is legally enforceable.  One problem is that agreements between family members tend to be viewed as not intending to create legal relations. That's the starting position but can be rebutted. However given this involves a house you would be far better off securing a charge on the property.
Also if this is to provide the deposit and there is going to be a mortgage in addition you need to be aware that mortgage companies do not like fully gifted deposits and any charge would have to subordinate to the mortgage.

TELLIT01

Definitely get it drawn up by a solicitor.  That will also make it clear to the potential recipient that it is a formal loan with all the responsibilities which go with it.  Many years ago a friend of mine was always 'borrowing' money from his parents for one scheme or another but clearly never expected to have to pay it back. They were most put out when the parents actually asked them to start repaying the money.