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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 31768
Experience:  Over 5 years in practice
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I live in SE Asia and my accountant in the U.K who is a

Customer Question

I live in SE Asia and my accountant in the U.K who is a long-time friend wanted to borrow $71,000 from me for a month pending re-financing of his office building in london which is registered in the name of his limited company of which he is sole director. There is an existing mortgage in favor of Barclays Bank plc, but there is still a lot of equity left in the property. Since the loan application was at an advanced stage he didn't want to register a new charge in my favour in case it would affect the application.
At my request, prior to the transfer of the funds to one of his accounts, he sent me an email on behalf of himself and his business partner stating that he would repay the usd to me within one month of the loan being made together with an agreed rate of interest, and stated that he gave me an undertaking that should for any reason the loan not be repaid within the month then he would immediately register a charge in my favour against the property. He acknowledged receipt of the funds and I have the printed bank record of transfer.
The month has now expired but the loan hasn't yet been forthcoming and he is reluctant to register the charge in case it compromises the loan and wishes to wait. He is not in good health also so I feel my funds are now at risk.
My question is can I ask a solicitor to register a charge or caution against the property should he fail to do so to protect my interest, and what other steps would you advise me to take.
Submitted: 1 year ago.
Category: Law
Expert:  F E Smith replied 1 year ago.

Is the £71,000 going to be repaid from the refinancing? If so, I cannot see why, provided the lender is aware of that, it should affect any application. In effect, all you are doing is bridging?

What about the accountants personal house? Will he let you have a charge on that?