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Family Loan Dispute

Chris1975z
Chris1975z Posts: 14 Forumite
Dear All

My parents provided my wife and I a £40,000 loan towards a deposit on our house a few years ago. We all signed into a trust deed whereby they could register their interest in the property in the event of a sale.
I'm sure I'm not the only one to have got into family disputes but needless to state the relationship with my parents has completely broken down. In the last few weeks we received a letter from their solicitors which required the land registry forms to be signed. We duly completed this in accordance with the terms of the trust deed. Since then we received an email from my parents threatening "further action" against us if we don't repay the £40,000. There is no loan argeement in place but I have paid interest each month at a rate of 3.5% as agreed from the outset verbally. It should be noted (and we would swear under oath to the same) that in my parents words "you'll get it when we die so you might as well have it now" was the basis on which the loan was offerered.

I have replied to their threatening email simply referring them to the terms of the Trust Deed which they have now executed and therefore this concludes the matter. We don't have 40k to pay them back and can't release equity as the mortgage (fixed) was based on a 25% deposit so they will not release funds.

Anyone's thoughts on the above would be sincerely appreciated.
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Comments

  • DCFC79
    DCFC79 Posts: 40,611 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Can I ask what happened for the relationship to break down ?
  • DCFC79 wrote: »
    Can I ask what happened for the relationship to break down ?

    I had an argument with my mother over the phone discussing the way they had treated us over the preceeding fews weeks. Within a couple of days they had emailed abuse at me personally, then at my wife (about me) and then to my in-laws (again about me). We have all records as contemporaneous evidence of their behaviour should court action be required. We were nothing but courteous and concise in our responses.
  • ILW
    ILW Posts: 18,333 Forumite
    I would try to make up with them.
  • ILW wrote: »
    I would try to make up with them.
    That will not happen. This is irreconcilable. They've already advised they've changed their wills etc. Therefore, advice from people with any experience of the liklihood of their demand for money is what I'm after.
  • Tixy
    Tixy Posts: 31,455 Forumite
    Sounds like all you can do now is wait to see whether they contact you again, either personally or through a solicitor.

    If they do write to you again then it may be worth contacting the solicitor who advised you and wife when the trust deed was originally signed, just to confirm with them that there is nothing legal your parents can do with respect to this £40k.

    I suppose parent's threatening 'further action' doesn't have to mean they think they can take legal action in relation to this money or force the sale of your house - they could mean action such as altering their wills etc.

    Edit - just seen your last response re wills etc. Difficult for people on a forum to advise without knowing the exact contents of the trust deed or what you signed from the solicitor recently - if parents take it further you will need to get proper legal advice.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    the legal position is determined by the trust deed


    otherwise it's a family matter
  • meer53
    meer53 Posts: 10,217 Forumite
    Tenth Anniversary 10,000 Posts Combo Breaker
    Must have been some argument !

    Surely you wouldn't want to cut your parents out of your life forever ? My ex MIL once didn't speak to me for 4 years because of something she said i'd done (it was untrue) but it's all blown over and been forgotten about now.

    You only get one set of parents, it would be a shame if you didn't make it up with them. And there are always two sides to every story.
  • There's more to this story, that or your parents are A-holes. What kind of person would spread rumors about their own child over a simple argument.
  • meer53
    meer53 Posts: 10,217 Forumite
    Tenth Anniversary 10,000 Posts Combo Breaker
    There's more to this story, that or your parents are A-holes. What kind of person would spread rumors about their own child over a simple argument.

    We don't know what the argument is about. How do you know that anyone is spreading rumours ?
  • This is very sad. I feel sorry for you, your wife and your parents. Is there really no way you can all come back from this? How would you feel if your parents died tomorrow ? Could you live the rest of your life without regret that you parted on such bad terms with no chance to put things right?

    Good luck op.
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