Loan money to a friend

2

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  • gingerdad
    gingerdad Posts: 1,919 Forumite
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    best and only advice is don't do it.

    or do it and don't expect it back

    it will most likely go wrong
    The futures bright the future is Ginger
  • poppasmurf_bewdley
    poppasmurf_bewdley Posts: 5,909 Forumite
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    The only way I would make the loan was if I had a charge of her present house, meaning I would be paid when the house was sold, no matter if the friend agrees or not.

    Having said that, I wouldn't do it anyway. £50k is an awful lot of money.

    Have you checked her credit file? My bet is it's not very good or she would be asking a bank, not you.
    "There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock
  • ReadingTim
    ReadingTim Posts: 3,970 Forumite
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    Short of a legal charge on her current property, there's no way to guarantee you'll get your money back. So, if you can't afford to lose it, you can't afford to lend it.

    But in short, don't. Just don't.
  • societys_child
    societys_child Posts: 7,110 Forumite
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    To be honest, I think your friend is pushing your friendship to the limit, and putting you in a very awkward position.

    Ask yourself, would a true friend do that?

    I'd say no (unless you can afford to give £50k away)
    Lending to friends or relations almost always ends in tears.
  • Missus_Hyde
    Missus_Hyde Posts: 531 Forumite
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    Candyapple wrote: »
    Don't do it. It's a really bad plan. What happens if the reason she doesn't want to miss out is because she knows her property won't get the price she thinks it is worth? Property prices are falling everywhere.

    Given that if she priced her current house to sell, it will sell.

    Is the new property a new build? If not, why are the vendors in such a rush to sell?
    gingerdad wrote: »
    best and only advice is don't do it.

    or do it and don't expect it back

    it will most likely go wrong
    ReadingTim wrote: »
    Short of a legal charge on her current property, there's no way to guarantee you'll get your money back. So, if you can't afford to lose it, you can't afford to lend it.

    But in short, don't. Just don't.

    Another vote for don’t do it!!

    These Forums are littered with the debris of broken friendships, where one party has faithfully promised to pay back the other party and sadly in most cases it never happened.

    Even with water tight agreements, it’s very difficult to actually get payment of the loan from a “friend”. You’d be better off just giving her the money (always supposing you can afford to part with 50000 grand! :p)

    Suggest your friend goes to a bank (there must be some reason that she hasn’t approached the bank in the first place.)
    A cunning plan, Baldrick? Whatever it was, it's got to be better than pretending to be mad; after all, who'd notice another mad person around here?.......Edmund Blackadder.
  • gazgits
    gazgits Posts: 59 Forumite
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    Thanks for all your comments. You have certainly given me plenty to think about.
  • badmemory
    badmemory Posts: 7,788 Forumite
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    There are 3 possible outcomes to this, one is that you go ahead & will lose a friend & your money or you say no & may lose a friend but won't lose your money or you lend the money get it bank & keep the friend but that is an awful lot of money.

    Of course, if you have a few mill in the bank then why not, but I suspect you are like most of us who have accumulated some savings & would not want to be stuck in the future without them.
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    I wouldn't do it, its a big chunk of money involved if it went pear shaped.
  • dresdendave
    dresdendave Posts: 889 Forumite
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    Missus_Hyde wrote: »
    You’d be better off just giving her the money (always supposing you can afford to part with 50000 grand! :p)


    Even the likes of Abramovich might think twice about lending a friend £50million.
  • ReadingTim
    ReadingTim Posts: 3,970 Forumite
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    gazgits wrote: »
    Thanks for all your comments. You have certainly given me plenty to think about.

    I don't believe there's anything to think about whatsoever. Look at the overwhelming response in favour of a single course of action: don't do it.
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