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-taff wrote: »
I've got to ask, beyond an unshakeable [it seems] belief in your friendship, what on earth makes you think they will pay back 80k if they haven't paid back 5k?
You have been burned once and you are going back for more.
Thy can sell it without the lease extension, and let the buyer buy it. But they won't get as much money for it.
And all the paperwork in theworld won't make someone pay you back if they don't want to.
I mean, think about it. You have two unemployed people [ don't know the circumstances there] that have an investment property that they have failed to capitalise on properly by allowing the lease to fall, looking for outside investment to maximise their return from a person they didn't pay back money they originally borrowed from.
I hope you're not back before long with a 'they didn't pay me back' thread.
Lover_of_Lycra wrote: »
Being Scottish I don't quite get this crackers leasehold carry on you have south of the border so I might be off the mark here.
Can the lease extension not be done as part of the sale of the leasehold? Your friends start the process of buying the lease and assign the benefit to the buyer?
noobinvestor wrote: »
My apologizes if I came across negative, I think a lot of us are concerned.
I hope it goes well and wish you all the best.
Your friend is very lucky to have you.
chucknorris wrote: »
I think a lot of the people being negative don't seem to understand what having a charge on the property means. Admittedly I don't know if what I think it is, it actually will be (yet), but the point is if it isn't I won't proceed anyway.
Shashy wrote: »
It may be bulletproof contractually and legally, and written by a competent solicitor; but all of those things become irrelevant if the property value doesn't cover the loan value and/or you can actually force a sale, which in practice I think is unlikely not least because someone who is willing to lend an unemployed friend 80 grand isn't going to make said friend homeless when they want their 80 grand back.
Shashy wrote: »
You seem like a smart person, but it seems in my humble opinion that your wish to support your friend may be clouding your judgment on this issue. There's a healthy chunk of confirmation bias in your responses so far in the thread.
I think the 'negative' responses on the property charge are actually realistic perspectives on how useful that charge is in practice. It may be bulletproof contractually and legally, and written by a competent solicitor; but all of those things become irrelevant if the property value doesn't cover the loan value and/or you can actually force a sale, which in practice I think is unlikely not least because someone who is willing to lend an unemployed friend 80 grand isn't going to make said friend homeless when they want their 80 grand back.
The fact this person is due a sizable inheritance from your estate highlights just how close you clearly are. Save yourself the headache if you absolutely must help, follow the previous advice and buy their flat at a discount.
DCFC79 wrote: »
You could lose the friend over this, are you prepared for that ?
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