Cousin wants a charge over my property

jakeyboyne

Not sure where to start and it's really stressing me out. But first off I'll say I know this isn't a legal forum but looking to see what people think / opinions would be until I get speak to CAB when they open on Tuesday.

Basically, my cousin lend me some cash last year, to purchase a house, with the agreement I would mortgage it in about 6 - 7 months to repay her. At the time it was when banks froze lending and house prices reduced a little.

Long story short, loan amount £100,000 .... nothing written on paper about loan length.

Since I've been in the property I've tried getting a mortgage and I've been refused every time, I've learnt this is due to something remaining on my credit file from a few years ago - but never the less it stops me getting approved.

I explained this to my cousin and told her since I was having trouble getting a mortgage I will put the house in the market and sell the property to return her money.

The property's been on the market for about 5 months now, and I've had 2 viewings, 1 offer. Which my cousin told me to reject (Offer of £95,000)

I seen her today at a family lunch and she turned a little nasty saying she was going to see a solicitor and I will be getting a letter from them.

My question is, what (if anything) can a solicitor do - far short of asking me to sell to return the funds, but its already on the market. The deeds to the house are solely in my name. Can she demand ownership?

I'm a little worried partly because I don't know what a solicitor can say or demand that I do. It's already up for sale.

Any advice would be appreciated.

clutton_2

if there is no loan length specified then it makes it very difficult for her to insist on repayment at any particular time.. are you sure there is no "minimum term" mentioned in the paperwork for example ?

rather than get angry and have a family falling out, you need to stay calm and invite her for a meal in a public place and iron things out ... talk to her.. find out why she is so stressed.. maybe she has debts she needs to pay off...

Emmzi

1. why didn't you get a mortgage at the time?
2. what did you both put in writing?
3. how did you get given the money?
4. was 100k the whole purchase price?
5. what savings do you have?

jakeyboyne

She kindly offered to lend to purchase while the banks wernt lending.
Nothing was put into writing
Money was transfered into my acct from hers.
100k was the price paid
No savings.

I wish it would just sell so i could return it and that'd be the end of it

caeler

What a difficult situation especially involving family. Just remember if she is going to a solicitor she will be getting it in the neck for not having a formal agreement specifying the 'loan' was indeed a loan and not a gift, that they expected full repayment within 6-7 months, etc.

I suggest you seek some legal advice so you can understand your rights in this situation. You don't want your home taken away from you, not that I'm suggesting this could happen but if your putting it on the market and considering accepting less than you paid then you may be in that situation.

Has your cousin suggested you now commence making some sort of regular repayment?
Is your cousin charging any interest on the loan?
What does the rest of your family make of this situation?

Emmzi

ok. the more you both spend on solicitors, the more you are both out of pocket, so no point making it a huge legal row.

I personally think she has been naive for assuming banks would start lending again; and I think you have taken advantage of her good nature without fully investigating your ability to get a mortgage.

I'd be giving her back as much as the house will sell for now, and getting a bank loan to repay the rest to her or, if you can't, drawing up a formal agreement with timescales to repay the balance.

Or, would she lie the property transferred into her name and she may do as she wishes with it?

Ulfar

Is the cousin charging interest ?

Are you paying anything at the moment, if not why not ?

poppysarah

I think this highlights why people should save for and get a mortgage based on their own wages.

Your cousin has been very nice to you but you need to sort out something.

Can you remortgage part of the value?

And were you aware of your past credit issues that would stop you getting a mortgage.

Let the cousin put a charge on it. It's probably more theirs than yours. Get a solution worked out. Even if that's sell the house.

Kavanne

The banks were lending, just not to you and this should have rung alarm bells for your cousin.

What WAS written down on paper about the loan? If anything??

jakeyboyne

[QUOTE=poppysarah;33334861_Even_if_that's_sell_the_house.[/QUOTE]

I've already stated I'm selling the house, My question is more what legally can she do, until the house is sold (Chrages etc) I wasn't looking for criticism - I know what I need to do - I'm looking for where she/I would stand in the mean time until the house is sold

there was nothing written down on paper.

Kavanne

jakeyboyne wrote: »

I've already stated I'm selling the house, My question is more what legally can she do, until the house is sold (Chrages etc) I wasn't looking for criticism - I know what I need to do - I'm looking for where she/I would stand in the mean time until the house is sold

there was nothing written down on paper.

She can pray you're a good person and will actually give her her money back when the house is eventually sold.