Family loan agreement
 

Hi, anyone know where I can get my hands on an example family loan agreement or have some suggestions?

Nothing really legaleeze but I want to have something informally formal if you see what I mean?

Cheers

Dave

I have done one in the past, simply the names (and addresses) of the two or more parties, the amounts involved and an agreed repayment plan, or to be repaid by whatever date you have agreed on. All parties sign and date the document with a copy for each person, you as the lender keeping the original though.

That's all you need to enforce the agreement in court also should you need.

Hope this helps.

Some advice I was given many years ago.

If you lend money too friends or family don't lend it unless you can afford to loose it.

I got caught once by somebody who I thought was a good friend, ''he needed''£500 for his holiday and I would get it back as soon as he got paid. Little did I know the holiday was actually him moving away to a new job. I later found out he had done the same to several other ''friends'' . How do these people sleep at night?

My sentiments exactly, I have lost a wedge of money to relations especially my two boys, they think you are a money pit, when you say no? They then go along the lines of a tight fisted old NAUGHTY WORD-NAUGHTY WORD-NAUGHTY WORD-, just don’t do it unless you don’t expect to get it back.

Rev

this advice you have been given is alas good advice "If you lend money too friends or family don't lend it unless you can afford to loose it."

some people will pay their debt, others wont. Don't let guilt force you into a decision.
It seems as if we are advising you not to lend, in fact we are probably just looking out for you and don't want you to lose so think carefully about them, the reason they require the money etc


I have not followed the advice however but if the person that I lent money to does not pay me back...... i'll cut them out of my Will which will be more then I lent them. Some incentive for them to pay :)
A Google search will probably offer you some good agreements


good luck

macafee2

SWMBO ''lends money to her daughter for the following reasons, I cant afford to pay my rent, I cant afford to tax my car, I cant afford to pay the car insurance, I need some petrol to get home :eek:. I don't have enough money for food and I am starving.

Oddly the loan is not actually a loan it is a CAN I HAVE !!!!.

I asked her to keep a record of how much she lent her daughter and she was so shocked she has decided enough is enough. Over a 5 month period she ''lent her over £1500. How much has she had back? £85.

The same daughter went to the common people event in Oxford this weekend, is about to go off too Spain for a week and apparently she is going to a hen weekend in a few weeks which will only cost her £400 and she smokes a packet of fags a day. The age of said daughter ? 28.

I suspect once the daughter has realised there is no more ''loans'' there is going to be a row.

My better half works 6 hours a week overtime to just give it away.

It is very difficult when it comes to family or even close friends. Finally, I put my son and daughter in law on notice that if they did not let me take over all guidance and control, then they get nothing else, ever. We are now getting on a lot better and they are literally hundreds per month better off.

I am pretty sure that an informal agreement signed by the parties in the case of family and friends will hold up in court. It did for me when going through a divorce. I had loaned a friend an amount to help him over a cash flow problem in his business. We had a signed and witnessed agreement but during said divorce ex wife tried to imply I had invested in the company and so she was entitled to a share of the business. Judge told her to go away, in fact he laughed when he asked who was the witnesses signature. It was hers. So I would suggest get it witnessed also.

On loaning to family I think one should be careful and maybe limit it but be flexible and accept that there is a high chance it will not all come back. I have three grown up children, one has never asked for help, one has when out of work and needing to reduce his overdraft. I helped him and as expected only got half back. He is earning less now than before and has a family of his own to support, he's trying hard. My other son suffers from a terrible disability, he can't work and his benefits don't go far. I regularly help him out with loans to get things to make his life easier. He asks for help and offers to pay back, I know he will try and fail but I still do it, that's what dads are for.

Sounds hard but "never a lender or a borrower be" or words to that effect, as has been said loans rarely make for happy relationships. Money is pretty cheap and easily obtained.Chris.S

I suspect that the circumstances of some of characters mentioned will have changed by now, I hope for the better. Easy to add a comment but get rid of her car, that will solve some of the expenditure problems.