How do you prove that your cash is in equity?

linthouse

My sister put 30k into our mum's house to make life easier for her. She has now had to go into full time care so the house is being sold to pay for that. They didn't put it in writing other than bank records that the transactions were within seconds of each other - out of one account, into the other. The bank says that, after seven years, all records are wiped so the bank has no record of these transactions.

I know most people will think it's a goner, but I'm wondering if anyone actually knows of a way to access this information.

jackyann

When I queried an old transaction, I was told that the records were difficuklt to access, and a "substantial fee" would have to be paid (Co-op) - as the amount I was querying was a few hundred, I didn't pursue it.

xylophone

My sister put 30k into our mum's house to make life easier for her.

Do you mean that she paid off her mortgage?

sleepless_saver

Even if you had evidence of the transaction, would there be any evidence that it was a loan that she expected to get back when the house was sold, rather than a gift?

linthouse

She topped up the 30k my mum needed for the house rather than anyone having to pay a mortgage on it. That's the equivalent of paying off the mortgage, I suppose.

somethingcorporate

Unless you have evidence it was actually a loan this will likely not get off the ground.

linthouse

The only evidence that it wasn't a "loan" is that it's in my mum's will that my sister gets her money back before the rest is shared equally among the family.

xylophone

This looks like a house bought under a right to buy scheme?
Your mother might be able to put it to the council that as she could not afford to buy without help, her daughter made the money available by way of an informal interest free loan, on the basis that her mother would repay her if the house was sold or through her will on death.

Does your mother's will make any acknowledgement of a loan?

However, your sister might need to accept that the council will regard the money as a gift.

linthouse

It wasn't a council house, it was a private purchase. I suppose it was a loan as my sister was due to get her money back after my mum's estate was settled. The problem seems to be proving that the money changed hands. My mum's will states that my sister should get the money back but that's not really proof in itself. There's no reason why the state should care but 30k is alot to write off.

McKneff

She could still get her money back, eventually, when nature takes its course (sorry, no offence) although the house will be sold the funds should still last a long time, especially when part of the funding for the 'care' comes from State Pension, carers allowance, so only a top up will be required from the house sale money.

atush

It would seem to me, the copies of the bank statements, plus the will are evidence this was a loan not a gift. So go to the council with them