Declaration of Trust - Equity help

Smokestack71

Hi there, and thank you for listening.

In 2007 my ex-partner purchased a property for renovation (in her name) for £123,000 with an RBS mortgage attached for £111,000.

I paid the deposit and renovation costs to the value of £40,000 and at the time of purchase, a declaration of trust was registered with Land Registry for the £40,000.

The relationship broke down, due to ex not wanting to sell the property and I moved home in 2008.

In 2010 ex contested the declaration, but it was upheld by court order by the Adjudicator for HM Land Registry.

There was no further contact with the ex.

In 2014 a letter from the Land Registry was sent to my parent's old address, saying the restriction had been overreached, and the property repossessed and sold for £127,000 - leaving somewhere in the region of £15,000 equity.

In 2019 (last week) the Land Registry's letter was handed to me purely by fluke from the person who now lives in my parent's house.

I've contacted Land Registry and now have the court order, mortgage number and a copy of the declaration, however nobody seems to be able to tell me:

a: where the £15k went
b: how I get it back
c: if I'm ever going to see it again.

I hope someone can help, as this is so stressful.

Thank you.

SmashedAvacado

If the property was held solely by your ex, you would not have been protected properly against a lender. He would have been the only trustee of the balance of money / surplas. What this likely means is that any surplus went to him or his debtors, albeit you might have a claim against him for breach of trust.

Smokestack71

Even though the declaration was legally binding. Signed by both parties and drawn up at the time of purchase by the sale solicitor?

AdrianC

Smokestack71 wrote: »

In 2007 my ex-partner purchased a property for renovation (in her name) for £123,000 with an RBS mortgage attached for £111,000.

In 2014 a letter from the Land Registry was sent to my parent's old address, saying the restriction had been overreached

Which means that the LR found that the lender's claim was more important than yours.

and the property repossessed and sold for £127,000 - leaving somewhere in the region of £15,000 equity.

You assume there was £15k equity left after all debts, costs and interest had been paid. It's entirely likely it wasn't, especially if the mortgage was interest-only. It's not a big stretch to see £0 equity left.

however nobody seems to be able to tell me:

a: where the £15k went

Any equity (of however much) went into your ex's bank account. As sole owner of the property, where else would it go...?

b: how I get it back

You take them to court to enforce the declaration of trust. Since it's more than £10k, it's not a small claim. Get a wiggle on, because it sounds like it's heading very rapidly towards the six year deadline for enforcing debts.

c: if I'm ever going to see it again.

Hold on while I give my crystal ball a quick polish.

If you're going to get it back, then...
1. You get in contact with them with a letter before action. Maybe they'll simply pay up. If not, then...
2. You launch the claim. Maybe they'll simply pay up. If not, then...
3, You win the claim. Maybe they'll simply pay up. If not, then...
4. You take enforcement action. Maybe they'll simply pay up or the enforcement agents will be able to liquidate sufficient assets to cover their costs plus the debt. If not, then...
5. You take steps towards their bankruptcy.

How far do you want to go?

[Deleted User]

AdrianC wrote: »

If you're going to get it back, then...
1. You get in contact with them with a letter before action. Maybe they'll simply pay up. If not, then...
2. You launch the claim. Maybe they'll simply pay up. If not, then...
3, You win the claim. Maybe they'll simply pay up. If not, then...
4. You take enforcement action. Maybe they'll simply pay up or the enforcement agents will be able to liquidate sufficient assets to cover their costs plus the debt. If not, then...
5. You take steps towards their bankruptcy.

How far do you want to go?

I havent taken anyone to 'proper' court over a loss but have done so in small claims where I needed to submit the amount I was claiming for through the process. Would this not be the case for OP trying to launch proceedings?


On your other points, completely agree that £15k could easily disappear in costs. Estate agents would take about 1% on a corporate sale, solicitors for the bank aren't cheap so maybe another couple of thousand there, but mainly if it was repossessed you've probably got a years worth of arrears fees and then court costs etc etc.

If i was in your shoes I would try get a copy of the completion statement from the ex to prove she doesnt owe you anything.

AdrianC

Deleted_User wrote: »

I havent taken anyone to 'proper' court over a loss but have done so in small claims where I needed to submit the amount I was claiming for through the process. Would this not be the case for OP trying to launch proceedings?

No, because their claim is over the £10k cap for being a small claim.