Help needed please - legal/financial advice

[Rotaree]

I suspect I know the answer to this already :rolleyes: but in February I lent a family member a fairly large sum of money to tide him over a business cash flow problem on the understanding that it would be returned by the end of April. In short I still haven't had the money back; I have spoken to him and he tells me that the return of the money is now dependant on the sale of a property that he owns. He said that the property was under offer and should complete in the next couple of weeks - I have now discovered that the property is still for sale. I am obviously beginning to suspect I may never see my money again but I am wondering (belatedly!) if there are any legal steps I can take to further my case? Unfortunately being a trusting (stupid?) soul I have nothing in writing, only the bank paperwork covering the 'chaps'(sp?) transfer and I text from him confirming that the money had arrived and thanking me for all my help!

Am I, as I suspect, up the creek without the proverbial propulsion device? Any advice gratefully received.

[Antwerpman]

Cant help you I`m afraid but I am in a similar postition with my brother - lent him a reasonable amount of cash (GBP4k)a year and a half ago to start himself off down the self employed route and still havent seen hide nor hair of it. His original business has even gone tits up and despite repeated promises that he will start to pay it off he hasnt done anything.

At least I have a written agreement from him, but it doesnt do me that much good because to persue it legally would probably cause more family trouble and strife than it is worth.

try to help people out and get taken advantage of ..... can see that I wont be doing it again

[angusfaldo]

A contract is still a contract even if it was agreed verbally. Of course the problem with verbal contracts is proving what was actually agreed. Reckon one of the resi legal types will be along to comment on this soon.

Do you have any hope of getting some kind of security off him in the mean time? Just had coffee with a friend I haven't see for a while. He's in the same situation and has managed to take custody of some very expensive wines as security for a sum he lent.

[Tuna]

You could (in both cases above) try getting them to agree to paying back the outstanding sum in acceptable monthly payments. If they will agree to that (and you can pressure them to feel that it's the only reasonable thing for them to do), then getting them to give you something in writing (or sign a paper) should be a logical next step.

Getting hold of a chunk of cash can be difficult for anyone, but setting up a standing order or direct debit is very easy to do and far less painful for them.

[rude-boy]

Rotaree said:

a fairly large sum of money.

Where you go from here really depends on what sum you are talking about £2k - You're best of waiting, gently nudging and hoping. £20k - you might have to get legal.

The biggest problem, other than the obvious £, is family. If you get 'tough' then it really is more than likely that you will cause some sort of family rift, even though it's the family member that caused all the problems in the first place you will be the one getting blamed by someone.

What can you do legally? Well if he is serious about paying you back after the sale of the property then you could see about lodging a charge against the property. he would need to sign this and if there is another charge against the property, such as a mortgage of business loan, you will need the consent of the other lender, in which case they will at the very least want £ for agreeing to this.

another possibility is to lodge a Unilateral notice at the Land Registry, assuming that the title to the property is registered of course.

As said you need to weigh up the pros and cons of all of the 'family' aspects vs the financial implications for you. Only if you are sure that you have to pursue this should you go to talk to a solicitor.

I would also say that I am only looking at the property aspect of all of this. There are other options that you can look at, such as taking him to court, but I really don't know enough to comment on that.

Not wishing to rub any salt and all that if anyone is ever thinking about lending more money to friends or family than they could afford to gamble they really should make sure that there is some sort of security for the loan and a properly worded legally binding document.

[Rotaree]

Thank you all very much for the advice. Thankfully the sum is 'only' £3k and whilst I really don't want to lose it I can see that from what has been said it might well cost me more in fees if I approach the legal route - although I would actually have no problem 'family-wise' in doing this, I don't think it would cause huge rifts elsewhere. One of our local big solicitors has a free consultation afternoon so I think I might go along and see what they have to say. In the meantime I will have to talk to him again and see if we can get any further - I like the idea of trying to persuade him to set up standing order.
Thanks again. Rotaree