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Vineet S
Vineet S,
Category: Law
Satisfied Customers: 3087
Experience:  Freelance Solicitor at Self Employed
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I am planning to lend my sister £12,000 which she will repay

Customer Question

I am planning to lend my sister £12,000 which she will repay when my father's house is sold (My sister brother and I have been left the house by my father who is now deceased.) Do I need to get a formal loan agreement drawn up by a solicitor?
JA: Have you talked to a lawyer about this? In which country do you live? If different, which country is your legal question related to?
Customer: We live in England and have struggled to find a \Solicitor who deals with this kind of thing
JA: What steps have you taken so far?
Customer: Telephoned several local solicitors
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: I am currently living in the house and have already loaned £12,000 approximately to my brother who has verbally agreed to repay me when the house is sold
Submitted: 20 days ago.
Category: Law
Expert:  Vineet S replied 20 days ago.

Welcome to Just Answer, I am a solicitor in England and Wales and I will be dealing with your case today.

Kindly note, I am not available for phone calls at the moment, however I can easily assist you via this online chat.

I will go through your question and will get back to you with my answer shortly.

Meanwhile, please ignore any phone call request pop-up, they get generated automatically without any input from the expert, so I have no control over these requests.

Expert:  Vineet S replied 20 days ago.

Hi there,

You do not have to get Loan agreement drawn up by a solicitor.

You can draft the agreement it should contain the terms regarding -

  • Amount of the loan
  • how much you want your sister to repay each month/or on a future event( sale of the property)

  • Rate of interest for late payment ( if applicable)

You could get an independent witness to sign the agreement too , along with you and your sister.

Once , the agreement is signed, you can transfer them the money. Advisable to transfer the money by bank transfer or cheque as there will be a record of the payment if you transfer it by bank transfer or cheque.

If things go wrong then you can recover the Loan via court proceedings.

I trust this helps.

If you need further assistance, please let me know.

In the meantime, thank you for using Just Answers. Best wishes.