To help a friend with their house purchase?

[DoNoTakeNo]

He is likely to be divorcing in the next few months & doesn't have the finances available to buy the family home (no kids involved) to which he is really emotionally attached.

I believe he is short by around £100k which DH & I are lucky enough to have.

WIBU to help him out?
And would a straight loan be better than jointly buying the house with him? FWIW he is self employed in a steady business & we've known him for over a decade.
I want to help him, he is genuinely a good man, but I'm not prepared to risk my kids inheritance!

(Sorry I don't know how to enable voting from the app.)

Don't do it. You shouldn't even be considering it, never a good idea to lend money to friends.

Sorry, hadn't read your updates. So glad you have made this decision.

If both you and your husband want to help this friend

AND

he is financially stable in his life and business

AND

his business is being run successfully, which can be seen by at least 3 years of accounts

then if it were me and I had that spare cash, I’d offer

BUT

no I would not Co-own the home as that puts you in the line for repairs, taxes, insurance, maintenance etc

rather I’d give a loan that is secured against the home and registered at land registry so that if the house needs to be sold for some reason in the future, you’d be one of the first in line to be repaid out if proceeds if sake. Also in case if death/probate.

there can’t be any room for argument, negotiation etc if you have a charge on the house. If you all fall out, you’d still get your money.

strongly advise you seek independent legal advice on this before you give any money to your friend.

No, please don’t. I’d like a big house, I can’t afford one, end of.

Never a lender nor a borrower be this will end in tears dont do it

What happens if he meets someone new , settles down for a few years and then splits up with them , would they be entitled to half of the value of the house too? Say no!

NO!

@DoNoTakeNo hello OP. Can I ask did you lend the money to your husbands friend? I'm being asked a similar favour?