Money lent

cymruchris

givememoney said:

Some people are saying the cost is £1,500 don't know where this has come from it is nearer £3,000.
We spoke with her and it was agreed the old fence with its wooden posts wasn't really any good as we have wicked winds that blow across the gardens here and she needs concrete posts and gravel boards. 

Apologies - I thought you were splitting the cost in half being a generous neighbour - and that you'd be paying £1500 - and they'd be paying £1500 of which their £1500 would go into some kind of loan agreement - that's possibly my misunderstanding of what you were saying. If she's stumping up the whole £3k in a loan - then there must be cheaper options just to a put up a protective fence that doesn't blow over - even in London? I understand they are responsible for the fence maintenance  - but I wouldn't like to agree to spending £3k on a fence even via a loan if there was a more basic way of getting it done more cheaply. 

Grumpy_chap

givememoney said:

We are paying for a new fence for our neighbour as it will benefit us as much as her and she cannot afford the layout.
We are going to make arrangements for her to pay the money back when work is completed. We are both in our 70s so there could be the possibility we were to die before it is paid back in full. 
My question, if that were to happen could we expect her to pay our next of kin the remaining sum?

You want a new fence.
You can afford a new fence.
Your neighbour wants a new fence.
Your neighbour cannot afford a new fence.

Forget about the neighbour paying you something sometime.  You should just pay for the fence and then live in harmony with your neighbour.  

pat1976

As others have said, really do get this loan in writing before the work commences. This will ensure your neighbour understands what she is signing up for so you can't be accused of misleading or duping her at a later date.

This lady is getting into quite significant debt for a new fence she can't afford. What would she do if you weren't offering to loan her the money? Probably a much cheaper fix up job. Do the deeds even say that she has to maintain the fence?

 I think you could get into trouble with this loan eg Is she being misled over her responsibility to maintain the fence? Is she being encouraged to spend more than she has to? Can she really afford the repayments? 

I wouldn't risk it if I were you, either help her find a cheaper solution she can afford (which might include putting money in yourself) or pay for it with a gentleman's agreement of being paid back and accept it may not all be repaid. 
. 

kimwp

Replacing the panels with chicken wire would be much cheaper, not blow over in the wind and satisfy her obligations as the owner of the fence without putting her in debt. Perhaps you could ask her to contribute the cost of that while you pay the remainder for the upgrade you want and can afford without incurring a debt?