Hello and thanks for using Just Answer.
My name is ***** ***** am happy to assist you with your enquiry.
Ideally, you need your fiancee to sign a Second Charge in your favour, setting out the full amount of your financial interest in the property. There would then be no argument at a later date as to your interest. However, to enter into a second Charge and to register a second charge at the Land Registry, you will need to obtain the consent of the first lender before this is done. Your fiancee's Mortgage Company may not agree to this if there is little equity.
If a second Charge is not possible, you should instruct a Solicitor to prepare a Deed of Trust for you, which will set out your financial interest in the property and which does not need to be registeered at the Land Registry, an hence your fiancee's Mortgage Company does not need to consent to any such Deed. Coupled with the signing of the Deed, you can then register a Restriction at the Land Registry which means that your fiancee won't be able to sell the property without your consent. This therefore protects your financial interest.
On a side issue, the problem you have with protecting your financial investment, is that even if you register a second Charge or a Restriction, your interst ranks below the interest of your fiancee's Mortgage Company. Therefore, there is no guarantee you will get your initial £118,000 back in the future, if there isn't this amount of equity in the property.
I hope this helps and sets out the legal position.
Can I assist you any further?
Hi, thank you so much for your reply, this is a complicated situation.
I remortgaged my property for 65k + loaned 53.5k of my savings to my "fiancee" = 118.5k as above.
He has 2 properties 1 with 90k equity which is in the process of being sold and I have a letter from him ( signed email) saying that he will return the 53.5k to me as soon as the sale goes through. The other house has equity of 67k but has been neglected in great condition the value would be 650-700k but he has a 500k interest only mortgage on this,.this is the property that he says I can have an entry for the land registry for, however I am unsure that the mortgage company will agree as there is little equity currently ( the intention is to do it up with my money.)
I am worried that he will not return the 53.5k once the other house is sold.If not what can i do how much sway will I have given that he has sent me a signed email to that fact?
I am happy to scan it in for you should you need to look at it.
Re the other 65k I understand that it appears that I will have to have a deed of trust signed if the mortgage company do not agree with a registered restriction upon sale.
I have found you VERY helpful and your answer very direct.
How many questions may I ask you?
Can I send you the scanned email?
Thank you so very much for your kind help,
Thanks for your reply.
As regards ***** ***** he is selling, if he does not repay you, you would have grounds to claim repayment on the basis that you have evidence by way of an email and no doubt evidence of a paper trail showing the monies were paid to him.
If he did not willingly repay you, you would have to issue small claims County Court proceedings against hi, but I hope this won't be necessary!
As rgeards the other property, I would of course not advise you to start renovation/spend any monies until the other proeprty has been sold and you have been repaid. On the basis there is littel equity, you will need to rely on a Deed of Trust, backed up with a Land Registry Restriction.
I hope this answers your question, and if so, I would be grateful if you could leave positive feedback.
If you require to ask further questions, please post this as a new Question, and request me, by starting your question- "ForCustomerquot;.
I hope this helps.
Hi Anna,Can I assist you any further?Kind RegardsAl
I am afraid this is getting worse, he now wants to buy a boat in Turkey with the proceeds of the house from which he is supposed to be repaying me and is basically saying that if I do not agree to this, that he will not sell the house so that my money will not be returned.
I am very frightened and do not know where to turn.
Please I desperately need some advice, i feel this is blackmail but need to keep him " sweet" so that he suspects nothing.
You mentioned a small claims court i was under the impression that this is only for amounts up to 10k not 118.5k?
Is there any way that I can stop him buying the boat and returning the money as agreed? The house is in his name so I have no control over the money that he has signed to say will be returned.
You did not answer how many questions i can ask and if you are able to draw up a Deed of Trust or are you an information site only?
Thank you Anna.
I am happy to give you a genral answer your latest question, on the basis that I hope I have answered your first question.
If he is not willing to pay you the monies from the Sale, it all depends on how quickly the Sale is going to take as to whether you are able to do anything. The only option you do have is to issue County Court proceedings (aplogies for saying "small claims.." in my previous post).
The court can imply that there was an agreement between you both by looking at the parties' conduct in relation to the property and all the circumstances of the case. A constructive trust can arise either at the time of purchase or at any time thereafter. Essentially you would need to prove that you have made a direct contribution towards the purchase price, and if so, the Court can make an order that you have an "equitable interest" in the property.
The issue you have is that Court proceedings do of course take time.
I hope this gives you a general view. Please feel free to post a new Question if need be.
I ama fraid that as a question and answer site, I can't provide a service for drawing up a Deed of Trust.
If I have answered your original qustion, I would be grateful if you could leave positive feedback.
He has since sold the property in Sandbanks and repaid 33k of my savings not the full 53.5k and told me that he had to pay a debt off and used "20k of my money" to do so without my permission as he said had he not done this his business would have suffered.
He has told me that that he is happy to sign a deed of trust with a restriction for the difference together with the 65k he borrowed from me against the property in Surrey (that has been neglected) but I can see that he is really not that bothered about it as he now does not really have any money invested in to that property as he has a 510k interest only mortgage so I own the eqhuity ( if there is any) together with the bank!
Please help me I do not know what to do?
Is it worth taking out a deed of trust with a restriction?
Please could you re-post this as an extra question, thanks.