Loaning money to friend

[Yellowmellow2]

My best friend is buying a house and has a shortfall for a few weeks, whilst she waits for some money she’s inheriting. For one reason or another, she needs to move as soon as possible so I’ve said I’ll loan her the money (several thousand). Just wanted to check if there are any implications from doing this? It would likely to be a loan for 6 to eight weeks.

I’m thinking her solicitor may need confirmation she’s not money laundering?

Nothing ends friendships faster than loaning money. What would the consequences be for you if she is unable to pay this money back? Whether it be ever or for a very long time?

If you go ahead (and I wouldn't) make sure it is all documented correctly.

I have done it for family and I had to get it all signed/witnessed and a charge put onto the property. One consideration was "what would happen if the borrower died?".

Don't do it!

Never lend more than you can afford not to get back. It has been the exception rather than the rule that I have received money back that I have lent and usually it has not been the full amount. Usually too have to hound them and it comes in dribs and drabs until you just give up
Disaster, I'm not saying don't lend it but I would do it with the expectation you won't get it all back.
This too was from people you least expected it from aswell

Another don’t do it. But if you do decide to go ahead, go to a solicitor and get a formal loan document. These loans can go so wrong

Don’t do it.
Just say I’m sorry, I’ve checked my savings account and I didn’t realise it was an ISA, not instant access, so I can’t withdraw any money.

Surely she can borrow from bank. I wouldn't risk it

Can't she get it elsewhere? Sell her car or get a loan against her inheritance or borrow it from her family?

Only lend what you can afford to lose. So in this instance that could be several thousand £ and your closest friendship.

Take it from someone who lost 12 grand in a similar situation.

Don't.

I wouldn’t do it at all. No way. I said no to a friend who asked me to be a guarantor for a loan and I said no and I’m so glad as she lost her job the year after- I would have been paying for her car!!!

Can you afford not to get it back?

@Noshowlomo I was in a similar situation. Friend forgot to mention all of their debts! They lost their house soon after. I felt awful saying no but I was so relieved when it all came out! Also really angry that they were happy to put me in that situation. We no longer speak.

Quickest way to fuck up a friendship.

I think your friend may find she can't buy a house with borrowed money. Mortgage companies won't accept it, and you will be required to state that the money is a gift. My nephew recently asked to borrow 5K from us to purchase his house. We were not permitted to loan the money, only gift it. If she doesn't require a mortgage, you will still be required to submit lots of bank information regarding your finances - money laundering is taken very seriously.

I'm with everyone one else, don't lend large sums of money to friends

If she needs a short term loan she should get one from a proper lender

All this “don’t do it”

I once lent a huge sum to a dear friend. Paid back exactly as agreed.
For my close group of very close friends I’ve had for years... wouldn’t hesitate as trust implicitly

There’s lots of implications to doing this.

I wouldn’t.

Why can’t she just wait for a few weeks until the inheritance is sorted?

It would take that long to set up a proper agreement for the loan anyway.

If you don’t want to offend her just say that your money is in an account that requires at least 3 month’s notice for a withdrawal.

I wouldn't lend the money, sorry.

My father in law gave us some cash towards our mortgage/house. He had to sign that it was a gift, not a loan and they even went as far as wanting his bank statement where the money came from. Which in my mind was a bit intrusive but he was great bless him.

It might not be so simple.

Plus loaning money to friends/family can be a disaster. I’d absolutely give a little money to them if struggling ( not large amounts I’m not rich!) but not loans.

My most recent inheritance took almost 2 years to complete.

I was constantly told it should only take 6 weeks.

My most recent inheritance took almost 2 years to complete.

A major concern, and this is not unusual at all. Op, what happens if she doesn't get this inheritance at all? She might be mistaken about the will, it could be contested, it could be in the courts for years, etc.

Don't lend this money.

Unwise, without a proper legal agreement.

@Jroseforever

All this “don’t do it”

I once lent a huge sum to a dear friend. Paid back exactly as agreed.
For my close group of very close friends I’ve had for years... wouldn’t hesitate as trust implicitly

That’s the scenario I’m hoping for!

It will need to be a loan and not a gift, particularly because of the tax implications on a gift.

My best friend is buying a house and has a shortfall for a few weeks, whilst she waits for some money she’s inheriting.

Then she waits to buy a house. A bit shit if she loses out on something she really wants but that's life.