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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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My grandfather left his house to my sister and I. We had it valued and have a share of £21

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My grandfather left his house to my sister and I. We had it valued and have a share of £215k each. My sister is happy for me to purchase the property from her in the form of a loan agreement (her 215k stake in the property).
We agreed that I would pay her interest of 1.25% (less than 1% above base rate) on the 215k. We asked a solicitor to draft an agreement for us however they have said we would come under the consumer credit act. The loan spans over 20 years.
I've been reading and feel that we would be exempt on the basis that this is a non-commercial agreement and interest is not at commercial rates.
I need a second opinion and also if I'm correct in my thoughts what parts of the act apply to make us exempt...
Customer: replied 1 year ago.
If we are indeed subject to regulation, are there anyway we can avoid this?
Hello my name is ***** ***** I will help you.No they are wrong, it would not come under the CCA.Friends and family lend money to each other all the time.Its only where you are doing this as a business would it come under the CCA. Here it is a loan between family members and is not covered by the Act.Can I clarify anything for you about this today please?Alex
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