My partner put £35k 5 years ago into my morgage as an investment, he was going to take a percentage of the profits, when we sold the house (he had put in a quarter of what i put in) but the prices have dropped by 40k. We split up 2 years ago. now he is demanding his 35k back. Do i have to give him 35k or should he be take a percentage of the loss?
Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.
may I ask if you drop any formal declaration of trust to record your agreement for failing which with you have any correspondence which records your agreement in this respect please?
No it was a verbal agreement..
Thanks. Do any third parties know of the arrangement, in particular independent parties?
no, only family, but was always agreed that he would take a percentage of the gain or loss.
Does he accept this was the agreement or does he reject that contention?
he did, but not know, he just says he wants his 35k back
Would he admit as much in reply to example an email or otherwise in writing do you think?
He might it was a solictors letter, but i have sent him numerous texts with this on and he has not denied it.
thank you. I apologise for he number of questions.
he does also owe me 2years rent for when we lived at a previous house. and i dont mind the questions..
If you're then partner made a capital contribution towards your property, in law, there is a presumption of something name as a result trust. The resulting trust is a legal concept whereby if a third party makes a financial contribution towards a property in the form of capital then the law implies that the legal owner will from that point onwards own the property on behalf of themselves and also the third party was made a capital contribution in shares commence it with the respective capital shares of the property - in other words, essentially as you agreed between you. this presumption can be rebutted by either party if for example you could show that the money was a gift, if you have agreed between you and express declaration of trust which provided otherwise or if your ex partner could demonstrate that the money was a loan rather than a capital contribution resulting in a resulting trust as we have discussed above
accordingly, based upon what you say, your ex-partner will have an interest commence through with his contribution at the time it was made in the property and that interest may go up or down with the value of the property if he now wishes to content of the money was a loan rather than a capital contribution resulting in a trust as above, then the burden of proof is upon him to demonstrate as much in order to be but the above presumption of a resulting trust
there is a question of agreeing the value of the property at the time he made contributions in order to determine your respective percentage shares in the property which may require the assistance of a valuer if more valuation or informal valuation was not agreed between you at the time the contribution was made
in terms of rent owed, providing you have evidence of an agreement whereby he would pay you rent, this would be a straightforward matter claim, if necessary through the Small Claims Court
is there anything above I can clarify you?
i am still none the wiser as to what i have to do.. When he put the money in we based it on the price we paid for the house. do we just fight it out the solictors and see who caves in first..
based upon what you say, you are the owner of the property and as you have no particular desire to sell the property presumably, it is for your ex-partner to take action rather than you. If you have not agreed any formal declaration of trust, your ex-partner can make a claim under the trusts of land and appointment of Trustees act for an order that the property is either sold or that you buy out his share in the property and where it is chairing the property cannot be agreed between you, that it is determined by a court based on the evidence both of you can bring
ideally, litigation would be avoided and in the assumption you may be able to afford to buy out his share based upon the percentage you content he owns on the property based on the properties present valuation, you may consider writing to your ex-partner advising that the contribution he made to the property is held on the resulting trust as we have discussed above and based upon the valuation of the property at the time the contributions made as agreed between you, is percentage share of the property equity is x%. from there, you can consider making an offer to buy out this share based on the properties present market value within x months (as possible) or if not possible, propose some other basis of repayment
if you cannot reach agreement, then your ex-partner has the right to ultimately issue proceedings in the County Court however he is unlikely to do so likely as there are cost implications to doing so
Is there anything else I can help you with>
what does charing the property mean?
Sorry this is a typo. I will repost the same:
...can make a claim under the trusts of land and appointment of Trustees act for an order that the property is either sold or that you buy out his share in the property and where his share in the property cannot be agreed between you, that it is determined by a court based on the evidence both of you can bring..
so just to be clear it will be best to try and get him to accept a deal or if not wait till he sends a solictors letter and go from there..
in my view, that is all you can do. Certainly dialogue is helpful in order to try to avoid litigation which is stressful and has cost of locations potentially for both of you but ultimately if agreement cannot be reached, it would be for your ex-partner to issue proceedings in the County Court as above
Does the above answer all your questions or is there anything I can clarify or help with any further?
could you explain this paragraph please
when they third-party makes a contribution towards the property, that third-party and the legal owner may decide to draw up and express declaration of trust.
the benefit of doing so is that the terms of the trust deed are set out clearly evidencing what has been agreed and this avoids a situation potentially whereby party subsequently disagree about between them. In the same way that is generally better to have a written contract rather than relying on the verbal contract, similarly, a written form of declaration of trust will typically be better than relying on resulting trust presumptions you discussed above simply because it reduces the possibility that one party will claim something other than what was agreed between you
Is there anything above I can clarify for you any further?
one more question. If this does progress will it make any difference that my ex is now living with a new partner who is working.. I live on my own and if i have to sell to pay him off i proberly wont get another morgage as i have had cancer and they are alot stricter now, plus i am 55 so ha
havent got a long working life ahead, Will they take that in consideration before making me sell the house?
Did you have any children together? From what you say you were not married?
No.. but he is employed and does alot a cash work which is doesnt declare, he used the materials leftover from these jobs to make a decking/ patio etc and has threatened to try and get me to pay all this back,for his labour, can he do this ?
thank you. Unfortunately because you are neither married nor her children, the courts will not take into account your respective circumstances in terms of financial settlement as despite there being caused to recognise unmarried partners in terms of legal rights, to date nothing has been done in this respect and if there are no children involved and you are not married, neither if you have any rights against the other in respect of property other than that property which she respectively own. however, if the matter were to go to court, you can certainly ask the court for a reasonable period order to raise monies to buy out his share they this is not likely to amount to more than several months or be at such a claim would take several months in itself to come to a hearing.
I hope that above has been of some assistance.
Thankyou for your help
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ok will do