Forum Home» Loans

Private loan friend to friend to pay for a lease extension - Page 6

New Post Advanced Search

Private loan friend to friend to pay for a lease extension

edited 8 January at 12:41PM in Loans
82 replies 4.2K views
1234689

Replies

  • edited 9 January at 12:37PM
    chucknorrischucknorris Forumite
    10.7K posts
    Part of the Furniture 10,000 Posts
    ✭✭✭✭✭
    edited 9 January at 12:37PM
    -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.

    She has had issues to deal with, I haven't been burned for the £5k, I am merely in the waiting room until the property is sold. The correct paperwork presented to a court would make them pay, but that is a last resort that I do not anticipate being necessary. Obviously for a large sum I wouldn't lend without protection, as far as the £5k goes, it is far less than I will be leaving her in my will anyway.

    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.
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    I've started running again, after several injuries had forced me to stop
  • 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.
  • chucknorrischucknorris Forumite
    10.7K posts
    Part of the Furniture 10,000 Posts
    ✭✭✭✭✭
    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?

    This is something that I have to look into, from what little i have read, it is possible but complicates the timing as the sale and the lease extension both have to run smoothly. I also read that it might still be difficult for the buyer to get the mortgage approved while the lease hasn't actually been extended (that needs investigating).
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    I've started running again, after several injuries had forced me to stop
  • chucknorrischucknorris Forumite
    10.7K posts
    Part of the Furniture 10,000 Posts
    ✭✭✭✭✭
    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.

    I have concerns myself, but I don't think that I can stand on the sidelines and just watch them sink financially.
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    I've started running again, after several injuries had forced me to stop
  • ShashyShashy Forumite
    139 posts
    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.

    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.
  • DCFC79DCFC79 Forumite
    38.8K posts
    Part of the Furniture 10,000 Posts Name Dropper
    ✭✭✭✭✭
    You could lose the friend over this, are you prepared for that ?
  • Voyager2002Voyager2002 Forumite
    13.9K posts
    Part of the Furniture 10,000 Posts Combo Breaker
    ✭✭✭✭✭
    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.


    Note that the property in question is an investment, not the friend's home.
  • chucknorrischucknorris Forumite
    10.7K posts
    Part of the Furniture 10,000 Posts
    ✭✭✭✭✭
    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.

    There is no way that I want to buy another property, we have sold 4 properties in the last 4 years, and there is another 4 to sell. I am totally fed up with property.

    They will not be homeless it is an investment property, it is not there home.

    Regarding the inheritance, you are way off the mark, the situation is that I (we) can't spend what we have (without just wasting it), and we have no family to leave it to. There are 5 people on my inheritance list as well as the Dog's Trust and The Last Chance Rescue Centre.
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    I've started running again, after several injuries had forced me to stop
  • chucknorrischucknorris Forumite
    10.7K posts
    Part of the Furniture 10,000 Posts
    ✭✭✭✭✭
    DCFC79 wrote: »
    You could lose the friend over this, are you prepared for that ?

    The way I view it is that if things went that way (which I don't think that they would), it would be them that loses a friend, I lose someone that I 'thought' was a friend (but as I said, I don't think that is the situation).
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    I've started running again, after several injuries had forced me to stop
  • chucknorrischucknorris Forumite
    10.7K posts
    Part of the Furniture 10,000 Posts
    ✭✭✭✭✭
    I think I have got everything I wanted from this thread now, things are starting to be repeated again and again. So thanks for everyone's contribution but I will stop contributing now. I will come back though much later, when it is done and declare what happened.
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    I've started running again, after several injuries had forced me to stop
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support