Do i need a legal document?

JasX

https://forums.moneysavingexpert.com/discussion/76953

There is a long thread on the issue here, yes hindsight is a wonderful thing but as a hard rule don;t lend money to family friends if you expect to see it again.

as per above thread you basically need to choose between not seeing the money again.... or losing/allienating your sister and still probably not seeing much of the money again.

Best advice would be to start saving for a deposit again, a watertight legal document is of no value at all if the person signing it has no assets (other debtors will have at least equal claim on any equity in the house...) if she needed that much god knows what level of other debts she'll have

zzzLazyDaisy

Sorry if this sounds harsh, but I do wonder if you have been giving your sister mixed messages?

Only last month you were saying that she probably wouldn't be able to repay the money for around ten years as she has a mortgage and a baby.

Now only a few weeks later you are asking her to repay a lump sum.

I can understand your concern, but I think you need to focus on getting a written agreement and keeping the debt alive, and then start saving up for a deposit.

Alternatively, she has a house, so hopefully over time the equity will increase as the mortgage is paid off. So there may be some merit in asking her for a charge over the house. That would go some way towards protecting your interests in the long term, although a house in joint names with little equity is going to have to increase in value considerably before you see your £30k again.

amy.ackles

Response to zzzLazyDaisy

Hi

I did not ask my sister for a lump sum. I told her that i wanted to get my own place and wanted to find out her financial situation, to see if she would be able to pay small amount each month to keep the debt alive. We were just talking, when she told me that she had the 20k, which changed as soon as she spoke to her husband.

I am trying to focus on getting a written agreement signed and keeping the debt alive, but I am concerned that she will refuse, as she keeps changing her mind.

Like i said before our relationship has always been rocky and I am very worried that if i ask her for the money, it will start a fight and she will stop talking to me and not pay any of the money back.

I have discussed it with my parents and they have told me to leave it, as they are worried that she will stop all communication and they will not see there grandson anymore, as she has been spoilt by them and she is the type of person that would do that.

In your post you said " there may be some merit in asking her for a charge over the house". How do i do that?

I appreciate your input

greyteam1959

If I was your sister & you asked me to sign any form of document regarding that money I would tell you politely to get stu**ed.
I think she has taken you for a mug myself.
The second bit of advice I would give you is to get yourself to a solicitor ASAP.
If you are worried about the cost ask ask ask ask..........
Its a lot of money ACT NOW

bingo_bango

Why exactly is this still in techie stuff?

GlynD

Drawing up a simple document is good advice which other posters have given you. I'd be inclined to have it witnessed by a Commisioner of Oaths however (Notary Public if you live in Scotland). You'll find a list in Yellow pages. It's not an expensive service and it could save arguments in future over what is a lot of money.

zzzLazyDaisy

amy.ackles wrote: »

Response to zzzLazyDaisy


In your post you said " there may be some merit in asking her for a charge over the house". How do i do that?

I appreciate your input

A charge is a legal process. You need to go and see a solicitor and explain the problem. Forms will be sent to her, and she will be advised to see a solicitor before signing them. Assuming she does sign them the charge will be registered at the land registry. But to be honest, if she isn't willing to sign a simple agreement confirming that she owes you the money, she isn't going to go through a formal legal process that will give you an entitlement to money if/when she sells the house.

mikey72

It sounds like her husband will never let her pay you back.
I remeber vaguely some process where you can make a charge on her house, she when she sells it you're down as a creditor, but have no idea how you would go about it, or if it's even possible here, so think you need proper legal advice.

edit- I missed that it has already been mentioned, but I didn't think the houseowner had to agree with it.