2nd Charge on a property

kjhblue

Hi,
I am after advice, 3 years ago I lent a relative of mine £60K to build an extension on her house. She was paying it back then got into a relationship with a Portuguese Handpump (W****R), who I believe got her into smoking drugs. He has convinced her that there is no way I can claim the money back so 'sod me'.

Can I put a 2nd charge on the property? I am only really keen to ensure that if she/he tries to sell the property I am aware of it so I can then take out a court order against her for my share of the profits. The house is valued at £300,000.00 with a mortgage of £70K

The (W****R) has come up with the plan that they will sell the house take the money pass it to somebody else declare bankruptcy and get a nice council house and never have to work again due to the money hidden away.

The reason dire prognostications have not befallen these two is because I have nephews and nieces and they would be homeless.

Is there anything I can do, without going through a huge legal battle, i.e. 2nd charge?

I look forward to your response
James

CLAPTON

you need a court order to put a charge on the house which may depend upon the paper work
see a solicitor asap

poppy10_2

It's hard enough to convert an unsecured loan to a secured one even if you have a written contract, if this was just an informal loan it will be next to impossible.

sophievenusdoom

Do you have paperwork confirming that she received the monies you lent to her?

kjhblue

Sophievenusdoom,

Thank you for responding
I have all the receipts for materials and payments to the contractor and all cheque stubs to relate to each payment made during the construction of the extension. I believe I can quite easily prove I paid out the money as a loan even to the extent the Architect Planning and Contractor were all aware that I was funding this for my relative on the basis that I would received back the money in the form of regular monthly payments. All three are happy to sign an affidavit to that effect or go to court as witnesses. I asked for a return of the capital I did not want interest and if she sells the house the increase in value she will keep. I just want back my money.

I think my real purpose of placing the 2nd charge on the house is to ensure she cannot sell it without my knowledge.

Best Wishes

Thrugelmir

kjhblue wrote: »

I think my real purpose of placing the 2nd charge on the house is to ensure she cannot sell it without my knowledge.

To convince a judge to apply a 2nd charge on a property in your favour. You will need to produce a signed document by both parties that specified the terms of the arrangement.

Otherwise its just 2 people having a disagreement. Something a court is unable to rule on.

TrickyDicky

Without a written contract of it being a formal loan, I get the feeling it will get treated as a gift. The fact that you paid for all the individual bits just reinforces it.

kjhblue

I suppose I will get my rewards in heaven the trouble is it happens so often to me, there must be a saying "Good Guys Have Sore Credentials" because they are always getting kicked in them.
Thanks for responding
Keep Smiling