Investor, ltd company (property development lender) , client. is it legal?

[cul8rm8e]

I am looking for as much help as possible relating to a very serious matter.

If i were to be a (sole director) of a limited company who wants to lend company funds to an individual who plans to use the money to undertake a small property development project and i had an investor who would invest in my company so i could finance the loan to the individual who would provide a first security over their land during the loan term, Can i, provide the first of two stages of the loan to the individual to take security and then transfer the security to the investor as security for the investment he would be providing.

Would i need to tell the individual that i am transferring the security to an investor in my company.

I very much look forward to reading your views/comments on the legality of this scenario.

[cul8rm8e]

Re: Investor, ltd company (property development lender) , client. is it legal?

Am I in the wrong place for this?

I am looking for as much help as possible relating to a very serious matter.

If i were to be a (sole director) of a limited company who wants to lend company funds to an individual who plans to use the money to undertake a small property development project and i had an investor who would invest in my company so i could finance the loan to the individual who would provide a first security over their land during the loan term, Can i, provide the first of two stages of the loan to the individual to take security and then transfer the security to the investor as security for the investment he would be providing.

Would i need to tell the individual that i am transferring the security to an investor in my company.

I very much look forward to reading your views/comments on the legality of this scenario.

[steampowered]

Re: Investor, ltd company (property development lender) , client. is it legal?

You can't transfer security over land so easily. You'd normally grant the investor a pledge over the shares in the company, so he gets the benefit of the charge that way.