To help a friend with their house purchase?

Oh Dear God No!!!!!

Absolutely not at all. NO NO NO. I'm utterly shocked by your thread. Why on You earth would you do this? Might as well chuck it in the sea.

A friend of mine did this and helped a friend in need with a loan. They defaulted, stopped payments, friend couldn't continue them and ended up bankrupt.

Only do it if you are happy to never see the 100k again,

Which is more important, your children's inheritance or some bloke you've known for ten years? Anyway, who's to say you won't fall on hard times at some point - life can be a bastard. Or you and your kids might really, really want £100,000 for some kind of opportunity in a few years time. To be honest, I can't believe you've even considered this - especially for a life changing sum of money. You must either be bonkers or besotted with the bloke.

I thought you meant a couple of grand at the most

That's an insane amount of money to lend him. At the absolute most you could invest in the property but I wouldn't be loaning that kind of money

No way! Invest it for your children’s futures.

I would maybe loan my sister or best friend £10k. Yes I would be pissed off th loose it, but ultimately it’s not going to impact me too much in the long term to loose it. This represents less than 10% of our annual take home pay. I suppose of you’re earning over a million, I could maybe understand why you’d be prepared to do it. If you’re not, I’m not sure why you’re considering it.

you also might not be doing him any favours and instead tying him into a mortgage iver a house he clearly cloves but cannot afford.

To me it’s a wild amount of money.

I guess if you're a multi-millionaire/billionaire and you won't miss £100k if it's never paid back, then it's a generous thing to do. If you're not that wealthy then no, I wouldn't loan your friend that much money. He'll have to grow up and learn to live within his means.

I would say don't do it. You have 100k + available because you have saved it - for you and your family's future security - not for friends.

If this chap could afford to repay an extra 100K then the bank would lend it to him. I think you will ruin your friendship doing this. Being emotionally attached to a house is not a good reason to stay somewhere that he can't afford.

But IF you do lend it to him then it HAS to be secured against the house by a legal charge so that the house can't be sold without you getting your money back. I think it would have to be a second charge if he needs a mortgage as the bank would want the first charge. Not sure if a bank will allow it for a house purchase with a mortgage at all though. If you wanted your money back trying to force the sale of a house in court is expensive. There is a danger that the house would not be sold and you would not be repaid during your lifetime.

If there's no children involved he doesn't need a whole house and can buy a place that he can afford. Honestly it's too much money to mix with friendship, don't go there.

Think of your kids who will know you all their life, not some man you've known for 10 years!

Okay, a different perspective from me.
It may be that if self-employed he can’t get a mortgage in which case you can loan him the money effectively as a mortgage yourself. That would mean you would have a charge attached to the property and therefore in theory your money is safe but you would have to force the sale of the house to get it back if you didn’t repay.

I’m not sure whether I would do that for a friend, but I have done it for family. In my case a solicitor to do up a contract which covers me if for any reason they couldn’t or wouldn’t. In my case the interest has been paid perfectly on time for four years and then at the point they could get their own mortgage the solicitor removed the charge and repaid balance owed.

Me too, if at all.

Maybe you could offer him first refusal if you were ever to sell.

Nope. If it was £10k, I'd loan that to my very closest, oldest friends. But £100k, Not a chance.

This.

But given you mention you’re worried about risking your kids inheritance I assume you’re not multi millionaires who can afford to lose 100k

I’ve known incredibly close friends vanish over a couple of hundred pound. There’s been many threads about lending small amounts to friends and they never see it again.

You would be very foolish. You’ll never see that money again.

He is a grown man. He can attach to a new house that HE can afford.

You would be extremely foolish to lend 100k.
Needing a 100k, isn't being short an amount to buy his house. Being short is needing £200 or £500.
Needing 100k means he definitely can't afford the house. He needs to take time to build up a deposit again.
I lent someone £10,000 once. It was a very stressful experience & look a long time to get it back. Would definitely not recommend lending any amount of money over £500.

Disaster waiting to happen. Don't do it OP.

NO, fast way to lose your kid’s inheritance and a friend .

I know plenty of men who are emotionally attached to cars or motorbikes or porn. Never met a man who was emotionally attached to a house.

Do your mean that's £100k that no bank will risk lending him? Unless you have millions knocking about then yes, obviously that will be risking your kids future inheritance. Never lend money you aren't prepared to lose.

Whatever could go wrong......will

And what’s with being emotionally attached to house. That’s just absurd and it’s time for him to grow up buy his own house with his money and then he can get emotionally attached to the house that he can afford. It’s not a stuffed animal. You don’t get emotionally attached to a house. A person maybe. Don’t listen to his tiny weenie violin. Don’t let him manipulate you. He doesn’t even have kids that might make him emotionally attached to the house but he doesn’t.

We gave both our sons £18,000 each which they chose to use towards house deposits. As part of the buying process we had to send a letter to the mortgage company to confirm that the money was a gift, we didn't expect to get it back and we understood we had no claim whatsoever on the house. You would have to do the same Op. Are you gifting that man £100,000.

No fucking way.

About 20 years ago we helped a really really good friend qho was also relatedyto my husband with a house purchase, just a few grand.

Took us 3 years and started legal proceedings to get it back and we've never spoken since.

Like you we said he was a great bloke,he'd never let us down etc Even he was family there's no way he would do anything to hurt us

Ha. That man acted like we'd died when it came time to pay us back. We were ghosts he could neither see nor hear.

Don't find out the hard way how people you love andtrust fuck you over over cash.

If you're going to do it, do it for a share of the house. He can buy you out later.