Loaned money for deposit

designamouse

Hi all
Complicated one here!
Myself and my partner were unable to obtain a mortgage for one or two reasons, my credit history and she hasn’t been able to work.
However, her uncle gifted us a sum of money for a deposit. Her parents stepped in and offered to take a mortgage for us and when we could buy ourselves we would.
However because it was their second home we need a massive chunk of money for stamp duty.
My father offered the difference and the house was purchased on the understanding my dad would be repaid if / when we brought the house.
Things have since soured and we are no longer together, she remains in the house, my dad has asked for assurance that he will get his money back at some point - to be told it’s my responsibility to repay it and he has no claim / right on the money back if and when the house is sold.
We have proof the money was given and acknowledgment they used it for the purchase of the house (although they claim it was for stamp duty / fees and not any equity of the property).
We are now expecting a cheque now but assurance if they sell the house the money will be returned.
Any thoughts?!
Help please?!

eddddy

Was there any kind of written agreement about the loan, or was it all agreed verbally?

Verbal agreements between family members can be difficult to enforce in court.

(What did you tell the mortgage company and solicitor about the money coming from your father? If you said it was a gift, that makes it much harder for you to now change your story and say it was a loan.)

steampowered

Are you a registered owner of the property?

If so, she can't sell the property without your signature, so you could refuse to consent to any sale unless you were happy with how the sale was going to be allocated.

Pixie5740

What is it your father is expecting, the sum that he loaned or a % share of the equity? Is there anything in writing to acknowledge that it was a loan because all you've said so far was that you have evidence money was given not that it had to be returned?

Did you ever live in the property and did you ever contribute towards the mortgage payments or did you pay rent?

designamouse

Hi all and thanks for the prompt replies.
Firstly no formal agreement about repaying the money exists, however it was given to my partners parents not ourselves. He doesn’t want any profit on the money - just the same value returned
During the time I lived at the property I paid the “rent” / mortgage money to her parents.
As the mortgage was in her parents name I’ve no idea what they said, whether it was even acknowledge as a gift or anything

lisyloo

I can see 2 choices here.
You pay your dad back and learn a lesson.

Your Dad take her parents to court when the house is sold.
That could obviously be decades away or never and he might even pre-decease the event.
I am not a lawyer but I think it’s unlikely a judge would believe it was a gift from you dad to her parent.

I think you should start working on the first.
Can you get an extra evening/weekend job to pay him back?

davidmcn

I can't see that dad has much of a case, if there wasn't even an informal agreement about what would happen if the kids never bought the property.

He does realise that even if the property is sold, the stamp duty won't be refunded to anyone? Where does he expect you/the in-laws to get the money from, unless the property has shot up in value? After all, if you and your partner had bought the property in your own names and then sold it shortly afterwards, you'd probably make a loss and wouldn't be able to do anything about it - surely all the parents realised that they were taking on the risk of being property owners here?

moneyistooshorttomention

It's obvious to me that the stamp duty is due to be repaid 50% by ex-girlfriend and 50% by OP. So OP doesnt have to "chase themselves" for their 50% - but the question is as to whether there is a legal way to get back the ex-girlfriends 50% - and it does look rather like there isnt a legal way from what I can see.

So it's down to her conscience (or lack of) as to whether she repays OP's father what she owes him. OP's father may have to write off her 50% and hope for karma to teach her how to act in future.

lisyloo

It's obvious to me that the stamp duty is due to be repaid 50% by ex-girlfriend and 50% by OP.

On the verbal understanding of when/if they bought the house.

what she owes him

But she doesn't owe him.
The understanding (not provable) was that this is only owed when/if the couple purchase the house (see post #1 where this is written in black and white).


If I was the son I'd be wanting to pay my dad back even though not legally obliged and I'd be working all hours to do so.
Christmas is coming, plenty of extra night shifts available at places like argos.


If I was the girlfiriend I'd be taking a snapshot of post#1 where the OPs version of understandig is written.

Pixie5740

moneyistooshorttomention wrote: »

It's obvious to me that the stamp duty is due to be repaid 50% by ex-girlfriend and 50% by OP. So OP doesnt have to "chase themselves" for their 50% - but the question is as to whether there is a legal way to get back the ex-girlfriends 50% - and it does look rather like there isnt a legal way from what I can see.

So it's down to her conscience (or lack of) as to whether she repays OP's father what she owes him. OP's father may have to write off her 50% and hope for karma to teach her how to act in future.

Unfortunately for the OP you aren't a Country Court Judge (as far as we know). What might appear as obvious to you won't be as obvious to the court since there is no agreement in writing and the money was paid to the ex's parents not the OP and not the ex.

caprikid1

Did they have permission to let ?


Did they pay tax on the RENT you paid ???


Both of these could be userful leverage as clearly they have stopped being reasonable.