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Bridging Loan with Power of Attorney

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  • Bridging Loan with Power of Attorney

    I need a partial bridging loan. My widowed mother could lend me the money but she has Alzeimers and would not understand what this is about. I am her only son and I have Power of Attorney over her finances. Could I legitimately lend some of her money to myself for the bridging loan?

    No mortgage is involved, and there is negligable risk - the loan would be only about 20% of the value of the two houses combined. I would repay her when I have sold the old house, with the interest it would have earned if it had not been touched.

    Can I do this?

  • #2
    Subject to any specific provisions in the power of attorney, the attorney can make gifts (and, therefore loans) if they are gifts or loans that the donor of the power would normally be expected to make

    As the loan is to be to you, the attorney, however, you do need to be especially careful (a) to ensure that the loan money is not put at risk and is repaid prompltly and (b) to ensure that there is no loss of income to your mother.

    Document it all carefully so that you can later prove exactly what took place if necessary
    This is based on my experience as a conveyancing solicitor in England, but I do not accept liability for information I give in this forum

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    • #3
      Thanks for the Advice

      Thanks for the Advice.

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