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Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 34236
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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A friend and I bought a property 8 years ago that was presented

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A friend and I bought a property 8 years ago that was presented to us by a mortgage broker we had used before and he had told us was a good deal from a friend of his. The only stipulation was that he was included on a deed of trust (Which we all signed) and that we all had an equal 3 way split. We had agreed to pay in a third of the deposit and fees each and the mortgage was in my name, he was rushing the deal through and said he couldn't give his side of the costs upfront so I paid it for him with the proviso it was paid back in a few months after we had done some renovations and sold it on for a projected profit. We were amateurs with savings trying to make some extra money
We bought the place, spent 6 months and a fair bit of our own money doing it up and then the property market hit the credit crunch. It wouldn't even sell for what we paid for it. We were left paying the mortgage (No contributions given from him despite constant requests) I never heard from him again, his business closed down and he vanished from the face of the earth
6 years on, my friend and I still had the property which turned out to be a terrible deal and we couldn't sell when we first took it on. We rented for a while, but 3 evictions of tenants through the courts and continual maintenance costs forced us to sell at a loss. This was marginally above what we bought for 6 years previously.
I have since received a letter from this mortgage adviser saying I owe him 3rd of the current property value. This is a considerable amount and he says he will take legal action to recover it
He has produced the deed of trust that says I was trustee and that after we had all contributed the money we would all have an equal share. I did sign this, and so did my friend, but there is now a witness signature from someone who wasn't there
Do I owe this man any money? I feel completely defrauded by him and feel he owes me money not the other way around. I am quite shocked.
I have checked and his company dissolved shortly after this investment. He has 14 linked companies and 8 have dissolved or he has resigned from. He seems to be a conman- Can I report him to anyone?
Many Thanks in advance
Submitted: 1 year ago.
Category: Law
Expert:  Clare replied 1 year ago.
HIThank you for your questionMy name is***** shall do my best to help you but I need some further information first?If the property was sold some time ago on what basis is he claiming a third of the present value?
Customer: replied 1 year ago.
Hi ClareThank you for your responseThe property was sold about a year and a half ago. He just has calculated an amount that he feels it is worth inclusive of his contribution (which he never made). Also I am not sure if he knows that I have actually sold it because he says that he will instruct his solicitor to commence proceedings for order of the sale of the property pursuant to section 14 (1) of the trust of land and appointment of trustee act 1996?
Customer: replied 1 year ago.
Hi ClareI should add. The declaration of trust was not actually titled that, it was just titled 'agreement' on non headed paper and was not drawn up by a solicitorIt states that 'in consideration of all parties contributing the sum of £xxxxx, towards the cost of improvement works to the property that I will then enter to a mortgage and will purchase the property at the purchase price. It then goes on to say that I will hold the property on trust for all 3 parties. It then says 'signed as a deed' and it only has HIS signature on that pageNow I don't remember that wording, or agreement and also my signature is on a separate page only saying 'signed as a deed' with mine and my friends signature on- The two do not look linkedI feel he has fraudulently added this first page. Furthermore, he never paid the money for improvements nor any of the deposit or costs as he states in this 'agreement'Thanks
Expert:  Clare replied 1 year ago.
Hi
Have you done a spreadsheet of the actual figures?
(Include Renault income and the costs of rental/eviction)
Customer: replied 1 year ago.
Hi ClareYes I have all of that including evidence, agents fees, solicitors fees, maintenance, receipts etc. it was definitely a lossThanks
Expert:  Clare replied 1 year ago.
Hi
How much does he owe you?
Customer: replied 1 year ago.
Hi ClareHaven't got my spreadsheet Infront of me but In the region of 15k- he is claiming I owe him 50kThanks
Expert:  Clare replied 1 year ago.
Hi
In that case the way forward is simple.
You write and say how grateful you are for the letter as you did not know how to contact him.
Send him a copy of the spread sheet and ask for his proposals for payment within the next 21 days failing which you will start proceedings to recover the funds.
I hope that this is of assistance - please ask if you need further details
Clare
Customer: replied 1 year ago.
Hi ClareThank you very much for this.Do I have to include anything specific in my response in regards ***** ***** trustee info? Do I say something like in his absence 2 trustees voted to sell? I have to say I really was naive about all of this trustee stuff and only since I've been reading up have I realised what it means. Having said that, as mortgage holder, named owner etc I always new I had the most responsibly. I actually had just given up on him and thought that as he had never contributed his share that the agreement was null and void.Do I need to say anything about any of that in my letter or do I just keep it simple like you say for now and just send the spreadsheet and the bill?Is there any likely hood in this getting to court?Thanks again
Expert:  Clare replied 1 year ago.
Hi
No keep it nice and simple - and you are over reading about the Trust do not worry - he cannot sue you - you could possibly sue him!
Customer: replied 1 year ago.
Thank you so much Clare for your fantastic advice. I will draft the letter and send the spreadsheet ASAPThank you for putting my mind at rest. Hopefully this all gets sorted quickly
Expert:  Clare replied 1 year ago.
You are welcome and I hope all goes well
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