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Seller took out a personal loan for home improvements, can I be held liable?

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Comments

  • Ksw3
    Ksw3 Posts: 331 Forumite
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    I'm a bit confused. Surely if the loan was for 15k all the things mentioned were paid in full from the funds. It wouldn't make much sense to take out a loan and then pay for items bit by bit from the proceeds. 
  • sheramber
    sheramber Posts: 19,101 Forumite
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    Ksw3 said:
    I'm a bit confused. Surely if the loan was for 15k all the things mentioned were paid in full from the funds. It wouldn't make much sense to take out a loan and then pay for items bit by bit from the proceeds. 
    But that appears to be what the  OP is saying.

    The seller took out a loan for the work but is  is paying off the loan bit by bit.

    Unless the total cost of the work doen eas more than the loan.
  • MeteredOut
    MeteredOut Posts: 1,314 Forumite
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    Is the solicitor called Lionel Hutz?
  • I suspect the wording of the enquiry has caused confusion, and the seller has answered in a way that suggests that their personal loan is in fact secured. If the enquiry was worded as suggested - then that would explain why,  "credit" can cover a multitude of options. 
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  • user1977
    user1977 Posts: 14,033 Forumite
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    In any event, asking the seller whether they have a secured loan (which doesn't seem to have been the question) isn't really helpful or necessary - you can check more reliably by seeing what is registered.
  • GDB2222
    GDB2222 Posts: 24,660 Forumite
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    baccalad said:
    So I just spoke with my mortgage adviser at Lloyds (I applied direct). There are some notes on my file to say that my solicitor has advised on the current situation with the loan, and someone from Lloyds' post-offer team has spoken with someone at legal, and legal came back and said that it "poses no risk to our security", and that they're happy to proceed.
    So, the bank aren't worried about their security. How do you feel about it?


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  • silvercar
    silvercar Posts: 46,955 Ambassador
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    When we bought our current home, the seller had to do some work before exchange to get sign off on building regs. This they did, promising the trades that they would pay for it from the proceeds of the house. They never paid and went bankrupt within weeks of completing on the sale. A couple of the trades asked us if we would like to pay (No, we wouldn't), but they didn't threaten to come and remove materials as that would be trespass and the sellers no longer owned the materials.

    In your shoes, I wouldn't worry.
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  • GDB2222 said:
    baccalad said:
    So I just spoke with my mortgage adviser at Lloyds (I applied direct). There are some notes on my file to say that my solicitor has advised on the current situation with the loan, and someone from Lloyds' post-offer team has spoken with someone at legal, and legal came back and said that it "poses no risk to our security", and that they're happy to proceed.
    So, the bank aren't worried about their security. How do you feel about it?


    I'm leaning towards, that if it's good enough for the bank, then it should be good enough for me too.

    If the bank legitimately thought there was even the slimmest of possibilities that another lender could come chasing me for money and seize items from the property (fixtures and fittings), then that by very definition would be something that affects their security, surely? And if that were the case I imagine they wouldn't touch it with a barge pole.
  • Slinky
    Slinky Posts: 9,982 Forumite
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    baccalad said:
    GDB2222 said:
    baccalad said:
    So I just spoke with my mortgage adviser at Lloyds (I applied direct). There are some notes on my file to say that my solicitor has advised on the current situation with the loan, and someone from Lloyds' post-offer team has spoken with someone at legal, and legal came back and said that it "poses no risk to our security", and that they're happy to proceed.
    So, the bank aren't worried about their security. How do you feel about it?


    I'm leaning towards, that if it's good enough for the bank, then it should be good enough for me too.

    If the bank legitimately thought there was even the slimmest of possibilities that another lender could come chasing me for money and seize items from the property (fixtures and fittings), then that by very definition would be something that affects their security, surely? And if that were the case I imagine they wouldn't touch it with a barge pole.

    Wouldn't that depend on how much of a deposit you've put in and what the LTV is?  If your deposit is £10K and there's the chance of somebody wanting £15K of goods back, then there's £5K of the bank money at risk.

    I'm guessing your deposit is way more than £15K.
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