Hello, I am a solicitor with over 15 years experience I will try to help you with this.
Can you clarify some things for me please. Possession proceedings have been issued by the person who provided the deposit? Who owns the freehold? Is there a written tenancy agreement or some other agreement settign out the arangement? How much of the deposit has been paid back.
Like most lawyers ob this site I am a working lawyer and have to fit in answers here around work. I will be busy for he rest of the morning but I will look at this question again as soon as I can
Thankyou for that information. The creditor has started possession proceedings? I think he will not succeed and unless there is something I have missed he i snot entitled to obtain possession. Has he registered a charge at the Land Registry against the property? I doubt he has the necessary consumer credit licence. He has offered a loan with interest on terms to assist in the purchase of property. It seems to me he should be licensed. He will have a great deal of difficulty enforcing an unregulated agreement like this. This is doubly true if he has added in some "gifts" to the loan amount. If they were gifts then there is no legal basis for demanding the money back. He has also deliberately entered into a harsh agreement in circumstances where he knows the lady will fail to pay him back as set out in the agreement. Even if he were licenced this would be problematic for him. He has however lent her some money to assist in the purchase of a property and must be entitled to have that paid back at some point. Not necessarily now and not necessarily with any interest though.
There is a lot at stake here and I would suggest that your friend gets legal representation in the proceedings from a solicitor in the orthodox way. She is clearly up against someone quite ruthless. Is he represented by solicitors? If she has house or car insurance then she is very likely to have cover for paying legal fees.
I am glad to have been of help and I wish your friend good luck in this. I would ge grateful if you would please rate my sevice a without a positive rating I will not get paid for the answers I have given you.