Personal bridging loans

kitslaw

Hello,
I am chair of a block of flats right to manage company. There are major works due to our block, some of which relate to fire safety, but not all and there is much anxiety about how much the works will cost and how to access the money. Though we are waiting to hear on how to access more money from the government's building safety fund there will be works that fall outside of this and while we are doing the work to properly cost these various leaseholders are asking the board for advice on raising finance etc. While the board is made up of volunteers who are not financial experts and can not give them official financial advice we can at least collate useful sites and try and filter some questions.  One leaseholder has suggested that those who have more access to funds could perhaps contribute to a bridging loan of sorts to help our neighbours and fellow leaseholders raise money if they can't from alternative routes so that the works aren't held up. A very generous idea, though one fraught with difficulties I would imagine. While I can find quite a lot of information online about peer to peer lending companies, I can find little advice on setting up this sort of direct scheme. Does anyone have any advice or where to look next for information before employing a professional financial advisor, which I'm not certain would be the best use of leaseholders money. Also where to find any reputable financial advisors for individual leaseholders to be able to contact them?
Thanks.

BrassicWoman

Personal bridging loans are a terrible idea. Engage a solicitor who will explain how to impose costs/ place charges where leaseholders are unable to pay. If they have to sell up, so be it.

phillw

kitslaw said:

One leaseholder has suggested that those who have more access to funds could perhaps contribute to a bridging loan of sorts to help our neighbours and fellow leaseholders raise money if they can't from alternative routes so that the works aren't held up. A very generous idea,

If that leaseholder is offering to do that, then they are generous.
If they are suggesting that other people do it then run a mile.

It might not seem like your situation could get worse, but it can.

bris

If they can't source funds from alternative routes then giving these tenants money will just be money down the drain, you will chase it for years.

Secured loans should be investigated to see if any of them meet the criteria. Another route may be the council. In Edinburgh for instance, where shared repairs are necessary the council step in and pay for anyone who either cant or refuse to pay, they then charge a 10% fee on top and take appropriate action to secure their investment, usually a charge on the property..

Have you approached your local council yet, they tend to know the answer one way or the other.  

Hillz52

I have a house in Spain which is up for sale and I have put a substantial deposit down on an apartment. I need to pay balance soon on apartment and was hoping house would be sold so where do I borrow £300,000 for a short time