Scots Law

Scottish law questions? Ask a Scots lawyer

Ask an Expert,
Get an Answer ASAP!

I need to borrow around £500k, I reside (tenant) in England.

Customer Question
A wealthy American friend has...
I need to borrow around £500k, I reside (tenant) in England.
A wealthy American friend has offered to help as follows
Loan over 3 years, interest 1.5% per annum
I have a house in Scotland (freehold , no mortgage)
In view of the size of the loan I would like to give my Scottish house as security.
We have drafted a simple loan agreement where my friend is the lender and I am the borrower. under English law.
My friend will be transferring funds from her us COMPANY not her personal account into my uk personal account.
Based on the above information do you foresee any problems with this loan? The security (how would you go about giving this one) ? Risks for borrower And lender?
Many thanks
Emmanuel
Submitted: 2 years ago.Category: Scots Law
Show More
Show Less
Ask Your Own Scots Law Question
Answered in 1 hour by:
1/17/2016
Lawyer: JGM, Solicitor replied 2 years ago
JGM
JGM, Solicitor
Category: Scots Law
Satisfied Customers: 12,542
Experience: 30 years as a practising solicitor.
Verified

There is no difficulty with the loan. A loan agreement can be an informal document and you can agree what system of law governs it. As far as the security over your house is concerned, the document has to be drawn up properly and in accordance with property law and registered in the Land Register by a solicitor. If that doesn't happen there is no valid security. Happy to discuss further.

Ask Your Own Scots Law Question
Customer reply replied 2 years ago
Thank you.
Can the fact that the loan is between her and myself yet the money is being transferred from her usa business account be a problem down the line?
Many thanks
Emmanuel
Lawyer: JGM, Solicitor replied 2 years ago

No, I can't think why it would unless you have any specific concern?

Ask Your Own Scots Law Question
Customer reply replied 2 years ago
am I right in saying that as the loan agreement is between her and myself it is binding in so far as us. But not binding in so far as her company is concerned. My point is should i ask for assurances that she has the authority to make this loan from her company account as worst case scenario could the company not turn around and say we never authorised this loan and as such any terms in our Loan agreement would be invalid ? Obviously this is all based on trust but one never knows in life!
Lawyer: JGM, Solicitor replied 2 years ago

If the loan agreement is between her and you, where the money comes from isn't your concern. That would be a matter between her and her company. Her company isn't loaning you the money.

Ask Your Own Scots Law Question
Customer reply replied 2 years ago
I agree that on paper it is her but the money comes from her company. Worst case scenario, you are saying that the company would have no recourse against me? Could they not say, again worst case scenario, that The loan was not authorised and as such this money is now owed to them and must be repaid immediately ?
Lawyer: JGM, Solicitor replied 2 years ago

On paper is what is relevant. The loan agreement is between you and her.

Ask Your Own Scots Law Question
Customer reply replied 2 years ago
worse case scenario, you are saying that the company has no recourse to me?
Lawyer: JGM, Solicitor replied 2 years ago

Yes, there is no contract between you and the company.

Ask Your Own Scots Law Question
Customer reply replied 2 years ago
them sending the money constitutes what?
Lawyer: JGM, Solicitor replied 2 years ago

A transfer of funds.

Ask Your Own Scots Law Question
Customer reply replied 2 years ago
Can they turn around and say they never authorised it ?
Lawyer: JGM, Solicitor replied 2 years ago

They can say what they like but that's nothing to do with the agreement you have with the individual. You have no contract with the company.

Ask Your Own Scots Law Question
Lawyer: JGM, Solicitor replied 2 years ago

If you are concerned about this, refuse to accept the funds unless they are sent via her personal bank account. I don't think there's a problem but do that if you want peace of mind.

Ask Your Own Scots Law Question
Customer reply replied 2 years ago
Registering the interest in the land registry would be the best way to secure the loan but would involve more legal costs. Is there a simpler option albeit not as 100%secure that i could offer the lender?
Lawyer: JGM, Solicitor replied 2 years ago

You could offer a personal bond but if I was the lender I would insist on a security. The cost is only about £400 plus VAT plus £60 to the Land Refister so it's not expensive when you consort the amount of the loan.

Ask Your Own Scots Law Question
Customer reply replied 2 years ago
Personal bond? How could organise This? The registration, would my solicitor or the lender's do this?
Lawyer: JGM, Solicitor replied 2 years ago
This answer is protected
Would you like to ask this question?
If you've already paid for this answer, simply Login.
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a lawyerLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask JGM Your Own Question
JGM
JGM
JGM, Solicitor
Category: Scots Law
Satisfied Customers: 12,542
12,542 Satisfied Customers
Experience: 30 years as a practising solicitor.

JGM is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks!

RickLeeds, UK

I did not know a French Law service existed and I was very impressed with the speed of reply --- very professional. Many thanks!

Ms. BakerAlfafar, Spain

Thank you so much for your help. Your answers were really useful and came back so quickly. Great!

MaggieUSA

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

I couldn't be more satisfied! This is the site I will always come to when I need a second opinion.

JustinKernersville, NC

< Previous | Next >

Meet the Experts:

Ben Jones

Ben Jones

UK Lawyer

346 satisfied customers

Qualified Solicitor

John Knox

John Knox

Solicitor

226 satisfied customers

Solicitor and Advocate

Kasare

Kasare

Solicitor

26 satisfied customers

I am a practicing solicitor, specialising in litigation, employment and family law

INC

INC

Solicitor-Advocate

3,874 satisfied customers

LL.B, Pg.Dip, LL.M, M.B.A (Pending), Solicitor-Advocate. UK Practising Certificate issued by SRA., DIFC Courts Registered (Dubai)

Jenny Mackenzie

Jenny Mackenzie

2,760 satisfied customers

Over 10 years experience in general legal matters

Matthew J

Matthew J

Solicitor

334 satisfied customers

4 y PQE (Partner) - Commercial / Residential Property & Property and Civil litigation experience

James Mather

James Mather

7,349 satisfied customers

Senior Partner at Berkson Wallace

< Previous | Next >

Related Scots Law Questions
My friend is English. She has been living in Scotland 20 yrs.
My friend is English. She has been living in Scotland 20 yrs. She was married 11 yrs ago and they have 2 young children (10 & 8). Her husband is Scottish. He began having an affair a year ago and left… read more
JGM
JGM
Solicitor
Bachelor's Degree
12,542 satisfied customers
I am domiciled in scotland, leave a scottish will naming the
I am domiciled in scotland, leave a scottish will naming the sole beneficiary as one of my two sons. Under scots law I understand the son excluded from the will can claim legal rights to my moveable e… read more
JGM
JGM
Solicitor
Bachelor's Degree
12,542 satisfied customers
My English wife left me some years ago and lives in Scotland.
My English wife left me some years ago and lives in Scotland. I am English and have always lived in England. Can we get divorced through either Scottish or English courts? What difference would there … read more
JGM
JGM
Solicitor
Bachelor's Degree
12,542 satisfied customers
i have a will ,made in england which leaves all to my 2 sons
i have a will ,made in england which leaves all to my 2 sons ,how ever i still have a husband who left me 2001 ,i made my will 2002 ,basically does he still have a claim as i am still married to him ,… read more
JGM
JGM
Solicitor
Bachelor's Degree
12,542 satisfied customers
I was married in England but separated and divorced in Edinburgh
I was married in England but separated and divorced in Edinburgh in 2004. At that time my ex husband made a legal agreement, registered in the courts in Edinburgh, to pay £750 per calendar month (to i… read more
JGM
JGM
Solicitor
Bachelor's Degree
12,542 satisfied customers
As a Scotsman living in England with property in both countries
As a Scotsman living in England with property in both countries but no particular plan to return to scotland, can i make a will in scotland (where i have a solicitor) or would the will have to be made… read more
JGM
JGM
Solicitor
Bachelor's Degree
12,542 satisfied customers
I left my wife on 28th March 2011, I have asked her to sell
I left my wife on 28th March 2011, I have asked her to sell the house as there are no children under 16 at home, I have a Son who is getting married in May and will be leaving home fully then, at the … read more
JGM
JGM
Solicitor
Bachelor's Degree
12,542 satisfied customers
I owe American Express and have been paying fairly regular
I owe American Express and have been paying fairly regular amounts for four years, but as my financial situation changed considerably four years ago was not in a position to pay off the debt. The init… read more
JGM
JGM
Solicitor
Bachelor's Degree
12,542 satisfied customers
Personal Injury law / requirements to be an Expert Witness Hi,
Personal Injury law / requirements to be an Expert Witness Hi, I work as an NHS GP in London. I supplement my income by performing medicals on claimants following road traffic accidents in England. Th… read more
JGM
JGM
Solicitor
Bachelor's Degree
12,542 satisfied customers
My mother has been ill for a number of years (mentally) in
My mother has been ill for a number of years (mentally) in the winter my sister took her to England (from scotland) and has refused access to me and my other sisters (3 people), she has cut off her mo… read more
JGM
JGM
Solicitor
Bachelor's Degree
12,542 satisfied customers
My widowed father died domicile in Scotland on 21st December
My widowed father died domicile in Scotland on 21st December 2010. I am estranged from my sister with whom my father lived for the last five years but had regular contact with him despite restrictions… read more
JGM
JGM
Solicitor
Bachelor's Degree
12,542 satisfied customers
My ex alcoholic husband living in England has now decided he
My ex alcoholic husband living in England has now decided he wants to see our 2 children after almost 5 years of absence from their lives. The children 10 & 8 have stated quite clearly they do not wan… read more
ivorylounge
ivorylounge
44 satisfied customers
I obtained an award of 45,000 from Manchester County Court
I obtained an award of £45,000 from Manchester County Court dated 21st June 2007 from my ex wife. This was dependant upon the former matrimonial home in Dundee becoming the sole property of my ex wife… read more
JGM
JGM
Solicitor
Bachelor's Degree
12,542 satisfied customers
Im an English Solicitor. I would like to know what forms I
I'm an English Solicitor. I would like to know what forms I would need ( and where I could get them) to deal with the Transfer of a property from my son and a former partner to his sole name. The prop… read more
JGM
JGM
Solicitor
Bachelor's Degree
12,542 satisfied customers
hi, We are looking at lending private funds in scotland. The
hi, We are looking at lending private funds in scotland. The scenario is this, we will lend £80,000 and will be paid £90,000 back after 3 months. how do we secure this? we were intending putting a cha… read more
JGM
JGM
Solicitor
Bachelor's Degree
12,542 satisfied customers
I have been asked by a friend (living in Scotland), if 2 of
I have been asked by a friend (living in Scotland), if 2 of the 3 executors named in her mother's will think that the second will, which effectively removes her as only family from inheriting in favou… read more
Jo C.
Jo C.
Barrister
Master\u0027s Degree
38,227 satisfied customers
hi..I have just signed Scottish divorce papers with South African
hi..I have just signed Scottish divorce papers with South African ex living in scotland. I am British, in south England with residential custody of my daughter, 3yrs. We have been separated 2 years. I… read more
ScotsLawPro
ScotsLawPro
Solicitor
Bachelor\u0027s Degree
This is a question around Scottish and/or English mortgages.
This is a question around Scottish and/or English mortgages. In the USA it is legal to transfer a property from seller to buyer even though there are mortgage(s) on the property without having to sett… read more
ScotsLawPro
ScotsLawPro
Solicitor
Bachelor\u0027s Degree

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x