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  • FIRST POST
    • Flip1234
    • By Flip1234 17th May 19, 12:02 AM
    • 4Posts
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    Flip1234
    Family loan
    • #1
    • 17th May 19, 12:02 AM
    Family loan 17th May 19 at 12:02 AM
    Hi apologies if I'm posting in the wrong area. In 2012 my wife and I bought a property. My FIL leant us 35000 towards the cost. We had an agreement that within 10 years we would repay him 1/5 of the properties value. 10 years went by and he wrote the debt off. We are now getting a divorce and ex has said that FIL now wants his money back. Is he able to do this?
Page 1
    • Tarambor
    • By Tarambor 17th May 19, 12:19 AM
    • 5,064 Posts
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    Tarambor
    • #2
    • 17th May 19, 12:19 AM
    • #2
    • 17th May 19, 12:19 AM
    What is in writing? Is there a contract for the original loan? Is there some documentary proof where he writes the debt off?
    • Flip1234
    • By Flip1234 17th May 19, 12:22 AM
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    Flip1234
    • #3
    • 17th May 19, 12:22 AM
    • #3
    • 17th May 19, 12:22 AM
    Hi yes it was a signed contract. It was 2002 and not 2012. As its over 6 years that contract date has passed would it be statute barred?
    • Flip1234
    • By Flip1234 17th May 19, 12:24 AM
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    Flip1234
    • #4
    • 17th May 19, 12:24 AM
    • #4
    • 17th May 19, 12:24 AM
    I've not seen proof of write off. It should have been paid in 2012.
    • Flip1234
    • By Flip1234 17th May 19, 12:36 AM
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    Flip1234
    • #5
    • 17th May 19, 12:36 AM
    • #5
    • 17th May 19, 12:36 AM
    The ex wants to buy my share of the house. It looks to me that this is a way of reducing my equity in the property. If FIL gets his share I will be left with 30000 for a 315000 house.
    • DCFC79
    • By DCFC79 17th May 19, 7:09 AM
    • 34,185 Posts
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    DCFC79
    • #6
    • 17th May 19, 7:09 AM
    • #6
    • 17th May 19, 7:09 AM
    This is why money shouldn't mix with family.
    • Gaz83
    • By Gaz83 17th May 19, 9:16 AM
    • 3,758 Posts
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    Gaz83
    • #7
    • 17th May 19, 9:16 AM
    • #7
    • 17th May 19, 9:16 AM
    Do you have a mortgage on the property?

    Did your bank / building society know you were buying the property with aid of a loan?
    "Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."
    • foxy-stoat
    • By foxy-stoat 17th May 19, 9:59 AM
    • 4,130 Posts
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    foxy-stoat
    • #8
    • 17th May 19, 9:59 AM
    • #8
    • 17th May 19, 9:59 AM
    Hi apologies if I'm posting in the wrong area. In 2012 my wife and I bought a property. My FIL leant us 35000 towards the cost. We had an agreement that within 10 years we would repay him 1/5 of the properties value. 10 years went by and he wrote the debt off. We are now getting a divorce and ex has said that FIL now wants his money back. Is he able to do this?
    Originally posted by Flip1234
    So 17 years ago you accepted £35,000 to help you to buy a property, now you want to wiggle out of paying him now you guys are splitting up.....

    Sounds like you need to give yourself a good talking too.
    • foxy-stoat
    • By foxy-stoat 17th May 19, 10:05 AM
    • 4,130 Posts
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    foxy-stoat
    • #9
    • 17th May 19, 10:05 AM
    • #9
    • 17th May 19, 10:05 AM
    Hi yes it was a signed contract. It was 2002 and not 2012. As its over 6 years that contract date has passed would it be statute barred?
    Originally posted by Flip1234
    You can't really use this as an excuse not to pay as the contract would of been taking the date where he should of received a 5th of the property's value past the 6 years.

    Unless you are saying, its 6 years from the date you should of paid him, but didn't so he cannot "enforce" the debt. Actually the debt never disappears, the Statue Barred only prevents them from taking legal action to enforce the debt. Does the FIL need to take legal action to get his money back?
    • foxy-stoat
    • By foxy-stoat 17th May 19, 10:06 AM
    • 4,130 Posts
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    foxy-stoat
    The ex wants to buy my share of the house. It looks to me that this is a way of reducing my equity in the property. If FIL gets his share I will be left with 30000 for a 315000 house.
    Originally posted by Flip1234
    Meaningless without knowing the mortgage balance.
    • MEM62
    • By MEM62 17th May 19, 10:07 AM
    • 2,363 Posts
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    MEM62
    The ex wants to buy my share of the house. It looks to me that this is a way of reducing my equity in the property. If FIL gets his share I will be left with 30000 for a 315000 house.
    Originally posted by Flip1234
    It is a predictable tactic. Divorce is often a dirty business. (Although I can see FIL's view. Why should his money benefit you to the tune of £17.5K when you are divorcing his daughter?) Ultimately, a court will decide whether it works or not but if you and your ex choose to fight it that far you will loose more than that in legal fees. You'll both be far better off being sensible and coming to an agreement rather than making you lawyers rich.
    • foxy-stoat
    • By foxy-stoat 17th May 19, 10:13 AM
    • 4,130 Posts
    • 2,419 Thanks
    foxy-stoat
    It is a predictable tactic. Divorce is often a dirty business. (Although I can see FIL's view. Why should his money benefit you to the tune of £17.5K when you are divorcing his daughter?) Ultimately, a court will decide whether it works or not but if you and your ex choose to fight it that far you will loose more than that in legal fees. You'll both be far better off being sensible and coming to an agreement rather than making you lawyers rich.
    Originally posted by MEM62
    Errrr no - they have to pay the FIL £63,000 based on current value - its not clear that FIL wants the original sum or 1 5th of the property's value in 2012.....
    • Tarambor
    • By Tarambor 17th May 19, 12:45 PM
    • 5,064 Posts
    • 3,980 Thanks
    Tarambor
    The ex wants to buy my share of the house. It looks to me that this is a way of reducing my equity in the property. If FIL gets his share I will be left with 30000 for a 315000 house.
    Originally posted by Flip1234
    You owe the money. No doubt you have nothing in writing about him writing off the debt as I asked and you didn't say you had. I'm failing to see the issue, it isn't like you're having to go out and find £35,000 from elsewhere, you're literally paying him back out of money you've gained from doing nothing but living in a property that he helped fund you to get.
    • MEM62
    • By MEM62 17th May 19, 3:20 PM
    • 2,363 Posts
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    MEM62
    Errrr no - they have to pay the FIL £63,000 based on current value - its not clear that FIL wants the original sum or 1 5th of the property's value in 2012.....
    Originally posted by foxy-stoat
    I based that on the statement in the original post original post that he 'wants his money back' not that he wanted his share of house value. But as you say, it's not clear.
    • Kentish Dave
    • By Kentish Dave 17th May 19, 9:56 PM
    • 35 Posts
    • 57 Thanks
    Kentish Dave
    Hi apologies if I'm posting in the wrong area. In 2012 my wife and I bought a property. My FIL leant us 35000 towards the cost. We had an agreement that within 10 years we would repay him 1/5 of the properties value. 10 years went by and he wrote the debt off. We are now getting a divorce and ex has said that FIL now wants his money back. Is he able to do this?
    Originally posted by Flip1234
    When you say that he wrote the debt off, do you mean that he told you to keep it, and he was changing it to being a gift?

    If so, that was that, really. You canít demand a gift back years later.
    • diggingdude
    • By diggingdude 17th May 19, 10:14 PM
    • 776 Posts
    • 1,013 Thanks
    diggingdude
    I hope you both declared this loan to the mortgage company at the time, you wouldn't want this to go to court and show you are trying to benefit from fraud
    House owner as of 27.3.2019
    Free Tumble drier fund £44 (March) £88.04 (April)
    • gycraig
    • By gycraig 18th May 19, 7:40 AM
    • 512 Posts
    • 418 Thanks
    gycraig
    Did the loan company know you was borrowing money from the fil at the time or did he say it was a "gift" to help you buy the house. If it was a gift he will of signed a legal statement it's a gift and he doesn't expect it back"
    • robatwork
    • By robatwork 18th May 19, 6:19 PM
    • 5,110 Posts
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    robatwork
    These aren't the answers the OP wanted!
    • enthusiasticsaver
    • By enthusiasticsaver 19th May 19, 8:27 AM
    • 8,457 Posts
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    enthusiasticsaver
    Errrr no - they have to pay the FIL £63,000 based on current value - its not clear that FIL wants the original sum or 1 5th of the property's value in 2012.....
    Originally posted by foxy-stoat


    OP you signed a contract and if I had been in your FILs place and given my daughter a substantial deposit with written confirmation of the arrangements I would want it enforced should her and my son in law split. The legal costs will be high so you are better off coming to some arrangement and pay what you promised to pay. Presumably as you only own half the property it is just 20% of your share so half of the total value. Being greedy never ends well. You will still walk away with £30k and considering he helped you buy the property it is the least you could do. Of course he wants his daughter to benefit the most.
    Last edited by enthusiasticsaver; 19-05-2019 at 8:34 AM.
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    • AnotherJoe
    • By AnotherJoe 19th May 19, 8:44 AM
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    AnotherJoe
    To be fair OP also said the debt was written off so is it fair that FIL now wants his money back ?
    No doubt nothing was documented at any stage.
    But odds are high FIL signed a doc for the lender agreeing this was a gift so he doesn't have much standing either.
    Either this goes legal or they will have to come to an agreement. OP will need to search his conscience. If it goes legal OP is in the driving seat because as it stands FIL has no way to get the money without what would be expensive legal action.
    Ps it's also unclear if FIL wants / expects ;
    Original money back
    1/5 value at the time of write off that it turns out wasn't a write off
    1/5 value when sold.
    Last edited by AnotherJoe; 19-05-2019 at 8:50 AM.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
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