Thinking about helping relative with bridging loan

PRAISETHESUN

My experience is never mix family and money, for all the very good reasons outlined above.

DullGreyGuy

PRAISETHESUN said:

My experience is never mix family and money, for all the very good reasons outlined above.

I'd be one step back from that and say never lend what you arent willing to give as a gift. If they pay you back, great, if they dont it was a gift. 

Skiddaw1

DullGreyGuy said:

PRAISETHESUN said:

My experience is never mix family and money, for all the very good reasons outlined above.

I'd be one step back from that and say never lend what you arent willing to give as a gift. If they pay you back, great, if they dont it was a gift. 

This. Never was a truer word spoken.

MEM62

dllive said:

So Im thinking of lending that to my relative to save him from getting a bridging loan.

dllive said:

Are there any legalties or tax implications from me doing this?

Legalities or tax implications, no. However, when it all goes wrong it is a great way of wrecking family dinners for years to come.    

Albermarle

PRAISETHESUN said:

My experience is never mix family and money, for all the very good reasons outlined above.

I think if you talk about immediate family, then it is quite difficult not to mix family and money.
I would see Bank of Mum and Dad helping out with house deposits as a positive thing, although of course in a minority of cases it might go badly.
However as said outright gifts probably cause less issues than interfamily loans etc. 

MEM62

Albermarle said:

PRAISETHESUN said:

My experience is never mix family and money, for all the very good reasons outlined above.

I would see Bank of Mum and Dad helping out with house deposits as a positive thing, although of course in a minority of cases it might go badly.

This is different as that would be a gift and not a loan.  Much more straightforward.  

Bigphil1474

We looked at bridging loans because we were too impatient with the normal selling/buying palaver. They are super expensive, I can't see the upside.

If you really really want to help your relative, couldn't you buy the house they are selling, charge them rent until they move out, then either sell later or keep on to manage? Obviously, the prices need to be right for you, and you will have to pay stamp duty (assuming England), plus other costs, so need to work out what is an acceptable price. That way you have the property for your cash, so don't need a charge being levied etc. and nobody can rob the other (generally speaking).