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Thomas
Thomas, Solicitor
Category: Family Law
Satisfied Customers: 7602
Experience:  UK solicitor
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My husband loaned £25,000 to his son under Deed of Title when

Customer Question

My husband loaned £25,000 to his son under Deed of Title when he bought his house. This was to be repaid after 4 years in Sept 2013. My stepson now has responsibility for a three year old, his girlfriend having walked out on them late 2013. The mortgage interest is being paid by Social Services and he is scraping together the remainder of the payments each month, thus keeping the Lender happy. My husband is at his wit's end to know how to retrieve the money he is owed, given his son's circumstances. However I have Leukaemia and the plan was for us to enjoy the rest of our lives together with this money. My husband has tried talking to his son, but this always ends up with his son getting (understandably) agitated. My husband wants to do the right thing for everyone, but I am not sure his son is aware of how this is affecting our lives. I am 67 and work part-time, my husband is 60 and works 6 days a week - our finances are stable, but we were looking forward to a little respite with this money.
Submitted: 2 years ago.
Category: Family Law
Expert:  Thomas replied 2 years ago.
Hi
Thanks for your patience
I assume that the loan was secured by a deed of trust, rather than the deed of title would you refer to (which doesn't really exist.
Your husband's rights in these circumstances are determined by what is contained in the trust deed. If a trust deed affords him a right to apply for an order of sale for the property then he can do this and ultimately it is highly likely that a court would grant an order for sale in these circumstances if the trust deed allows it.
If the trust deed does not refer to a power of sale in your husband's favour but does refer to repayment terms which have been breached by the son then this would be a breach of the trust deed, which is effectively a breach of contract. Again, this would probably allow your husband to apply for an order for sale of the property from court.
If your husband does not want to apply for an order of sale for the property then until your son is able to repay the money there is not a great deal that can be done. This is because if your son is not able to remortgage in order to buy out your husband under the trust deed and there is no way of realising further the money from the property.
Unfortunately it appears that it is either an order for sale or that you and your husband wait it out until your son can we pay the monies. I am sorry.
Kind regards
Tom
Thomas and other Family Law Specialists are ready to help you
Expert:  Thomas replied 2 years ago.
Hi
Is there any further information you require?
I just want to ensure that you are satisfied, so please let me know if you have any further queries on the information I have provided.
Kind regards,
Tom
Customer: replied 2 years ago.

Thank you - we had anticipated that the options you have outlined would be the only ones. I feel so desperately sorry for my husband, he loaned this money in all good faith and now is also having to cope with his son being an ostrich and not facing up to the debt.

Thank you for your response, it was reassuring in an adverse kind of way.

Expert:  Thomas replied 2 years ago.
Hi,
Yes, it's a very difficult situation and you have my sympathies.
Kind regards,
Tom

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