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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I lent £30,000 to a friend 18 months ago to buy a £60,000

Customer Question

I lent £30,000 to a friend 18 months ago to buy a £60,000 flat in Salisbury. The idea is that the money should be repaid on the sale of her flat, ie when she dies, she is currently 65. So we could be looking at a long term loan. I was wondering what a fair interest rate might be. Originally I thought I was lending the money to her son, so I feel rather duped by this as typically our friendship has gone sour. We are all 3 going to discuss this face to face hopefully next Monday. Can you help?
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you with this.
You need to write and set out your losses and request a refund within 14 days or say you will go to Court within 14 days. You should make sure you send this signed delivery and keep a copy.
If they do not refund you then you can issue proceedings in the County Court. You can either do this online at: www.moneyclaim.gov.uk or by completing form N1 http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n001-eng.pdf and take it to your local County Court.
The Court will then issue a claim which a copy will be sent to the Defendant who will have a limited time to defend it, if not you can enter Judgment and enforce.
If the claim is for £10,000 or less it will be a small claim so you will not need legal representation. Over this value you would need representation for trial. Over £10,000 you may need a Solicitor to represent you if the matter is defended.
Can I clarify anything for you about this today please?
Ash and other Law Specialists are ready to help you
Customer: replied 2 years ago.

Sorry I wasn't clear with my question. I need help in working out a fair interest rate, an then set up a loan agreement. I am not charging interest until the loan is repaid once the flat is sold in thefuture which could be 20 plus years, ie on the death of my friend's mother who is 65 at the moment.

Expert:  Ash replied 2 years ago.
Ok.the court allows you to charge 8%
Alex
Expert:  Ash replied 2 years ago.
Hi

I am just following up to see if there is anything else I can help with?

If this answers your question might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.

If you need more help please click reply.

Alex