can I lend my friend money to buy her house? (UK)?

You should probably check with your mortgage company first as they can be very specific as to what you can use the money for since you would not be actually purchasing your own house with it and neither would you be purchasing hers.

If your mortgage company is happy to advance you the money for the purpose of lending it to your friend and you are absolutely sure you can trust her to repay such a large sum over what would be a long time then you should get legal documents drawn up by a solicitor.

This sounds like the end result is that your friend will own her home (thanks to your loan), but now you will not (b/c of the mortgage).

Are you in a good enough financial situation to purchase your home at this time? Can you take on a new 15-30 year debt?

When loaning money, you always have to assume that circumstances may arise where it's not possible for person to pay you back (no matter how much they'd like to). So you lend as if this is a debt that you can take care of 100%. If you're not in the financial position, I would not carry the debt.

I don't know about the UK but here is the States if money is "given" by a friend or relative to purchase property, you must provide a legal Gift Letter, stating that it is money that does not need to be re-paid. Therefore there is no legal standing for you should your friend fall short on your expectations of re-payment.

Even though you trust your friend... I have over the YEARS come to learn it's not a good idea to get involved that deep with friends or relatives.

It has been my experience to never mix friendship with money.

Now with that said! You purchase the property and sell it to her on contract.

Have the document created by an accountant or an attorney, even though you are friends people can loose their form of income and it makes it real hard to make payments.

Never lend money to friends or family members because in most cases, they will never pay you back. Let your friend borrow money from someone else.

Personally I think it's too risky.

What happens down the line if your friend loses her job? Passes away? The mortgage is in your name, and it's your house that it's secured against.

if you don't trust her 100% lend her the money and ask her to sign a paper in a lawyers' office to take second charge on the house if she fails to pay you back.

If not, life is not easy these days and we need our money due to the current economic situation for us and the others around us.

Absolutely yes , and you can lend me the rest.

Just kidding..

I have 5 words for you

BUSINESS AND PLEASURE DONT MIX

before lending money to your friend, decide which you need more!