family debt

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bigknickers
bigknickers Posts: 1 Newbie
in Dealing with debts & debt disputes
One of my family members lent another family member a large sum of money which was used towards purchasing property. The loan was only meant to be short term and it was agreed interest would be paid at bank rate. To date the person has only paid a small monthly interest payment and not made any effort to pay the loan back. This has gone on for 2 years now and the lender needs their money back. If the person cannot repay it can the lender have something drawn up in writing and then register a charge against the property?

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  • paddedjohn
    paddedjohn Posts: 7,512 Forumite
    First Anniversary
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    Is there any paper trail to the origonal loan? is the person owing the money willing to let a charge be registered? is there equity in the property?
    Be Alert..........Britain needs lerts.
  • Wywth
    Wywth Posts: 5,079 Forumite
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    bigknickers wrote: »
    One of my family members lent another family member a large sum of money which was used towards purchasing property. The loan was only meant to be short term and it was agreed interest would be paid at bank rate. To date the person has only paid a small monthly interest payment and not made any effort to pay the loan back. This has gone on for 2 years now and the lender needs their money back. If the person cannot repay it can the lender have something drawn up in writing and then register a charge against the property?

    If the borrower agrees, then this should be possible. Speak to a solicitor :)
  • CAB_Swansea_Bay_representative
    CAB_Swansea_Bay_representative Posts: 287 Organisation Representative
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    Hi bigknickers, thank you for your query regarding family debt
    Unfortunately we can only answer questions from people who are in debt or disputing a debt but if your family member contacts their local Citizens Advice Bureau or look on https://www.adviceguide.org.uk you should be able to get information about taking action to recover money in the county court. You can find your local Citizens Advice Bureau at https://www.citizensadvice.org.uk.
    Hope this is of assistance
    “Official CAB Representative
    I am an official representative of CAB. MSE has given permission for me to post in response to questions on the CAB Board. You can see my name on the companies with permission to post list. If you believe I’ve broken any rules please report my post to forumteam@moneysavingexpert.com as usual"
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