Complicated Family Loan.

ThriftyWays

Any advice on this peach!!!


About 8 years ago, my youngest son and his wife bought a small touring caravan park which included two holiday cottages and a large building plot with planning permission for a substantial 4 bedroom house. They initially lived on this plot in a very small static caravan with two large dogs and a small child.

Within a year, my wife and I sold our own property and as a private agreement with my son and his wife, effectively bought one of the holiday cottages for our own use. The property was valued at £150,000 by a local estate agent. The monies we gave them enabled work to start on the house/site much sooner than would otherwise have been possible.

Our verbal agreement at the time was that they should provide legal documentation such that upon our deaths, this property would be re-valued. This new valuation forming the basis of our estate, to be divided equally between our four children.

Seven years have now elapsed and we still have no legal protection in place. I note that there are such instruments as Promissory Notes, Loan Agreements and Loan Contracts etc and wondered if your team of experts could point us in the direction of a suitable solution. I am edging towards the Promissory Note option so that I can nominate which local Surveyors/Valuers will provide the valuation, and have agreement on the timeframe/penalties in which they must settle the amounts due to my other three children.

Hoping some of you can offer suitable advice. Many thanks.
Thrifty Ways

bargainbetty

This is something you need to seek specific legal advice on. Talk to a solicitor, and draw up the documents yourself. There is no hurry in their minds, and if this is what you need to feel secure, find out your options, prep everything, and then sit down with them.

However, possession being nine-tenths of the law, you might find it more complicated than you think.

Good luck

Bravehearted_2

Seek proper legal counsel.

I wouldn't refer to random internet strangers as experts for such a major issue.

Conrad

Ah familial loans, a source of constant angst I'm afraid. You need to act fast and take this seriously.
My gut tells me that that £150k ain't ever comming back. Money often over-rides love and morality.

chesky369

............effectively bought ................

what does this mean? Whose name is on the deeds at the Land Registry?

Hope it doesn't mean like 'a little bit pregnant'.

redpete

Seems to me it would be better to formalise the ownership of the property that you 'effectively bought' rather than formalising the loan. I would expect significant legal costs for this but in my opinion it would result in a cleaner arrangement.

I am, of course, not a lawyer and as others have suggested you really need advice from someone who is.