How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask F E Smith Your Own Question

F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 8444
Experience:  I have been practising for 30 years.
Type Your Law Question Here...
F E Smith is online now

A friend of mine wanted to invest in a house I bought in

Customer Question

A friend of mine wanted to invest in a house I bought in Ireland , paid £55,500 sterling , friend put in £10,000 sterling as investment , we both agreed if house prices went up we would sell and make profit . Have had property for 2 years now , have done a lot of work to property that my friend did not contribute any money to , we also spoke about renting property as a holiday home but have not got round to doing as yet , we both used the house holiday times and her family also stayed free of charge as so did mine , we have now had a massive fall out , she is asking for her £10,000 back and house valued and profit is €20,000 euros which I am more than happy to pay back her £10,000 and her percentage on profit . I am not selling the house I am getting a loan to pay her back but now she is telling me I also owe her 2 years holiday rental that does not exist as house has not been rented out yet . She is saying she has spoken to a solicitor and it does not matter that house was never rented that she is still entitled to this . There was no contracts ever signed or agreement , house is in my name only what should I do . I'm more than happy to pay her her money back that she is asking for but not on money that does not exist
Submitted: 2 months ago.
Category: Law
Expert:  F E Smith replied 2 months ago.

Please confirm that you are both based in the United Kingdom on the mainland.

Customer: replied 2 months ago.
we both live in the uk
Customer: replied 2 months ago.
we are both uk based
Expert:  F E Smith replied 2 months ago.

You say that you bought the house so I am assuming it was in your name only.

There is no agreement to the contrary as to which is the applicable law and hence, as you are both in England and presumably don’t want the grief of any potential legal proceedings in Ireland, you would be happy to both go to English courts.

The only way that she may be entitled to any rental income would be if you had been living in it or if it was ready for rental and for whatever reason, you didn’t rent it or, you rented it to a friend or someone else.

Your friend would be entitled to a proportion of the increase in value of the property in respect of her £10,000 but ignoring the improvements that you have made. She hasn’t contributed to those. You would need a valuation of the property comparing what it was worth when you bought it and what it is worth now ignoring the actual cost of your improvements and giving you some allowance for any labour you put in.

This is simple maths.

The fact that she may want her money back works in your favour. You can offer her the amount that you agree with in full and final settlement and if she won’t accept that, you can hang onto the money which means that she could be waiting for over 12 months for it.

I don’t know what amount she is looking claiming, but if the rental income she think she is entitled to is under £10,000 it is going to be Small Claims Court and she will not recover her legal costs even if she wins. I think that the rental income she is claiming is somewhat of a bizarre claim.

I suggest that you write back to her telling her what you agree to and asking her why she thinks she’s entitled to some rental income for a property which was not rented out. she may be claiming that you were living there rent free while doing the work. however, she would only be entitled to a proportion of the rental income in proportion to the amount she invested compared to the amount you invested.

Tell her to ask her solicitor to write to you. You will then know, if the solicitor does write back to you, whether she means business or not.

Incidentally, you will always find that sending a cheque is more powerful than making an offer. If you are sending a cheque, marked the letter Without Prejudice save as to Costs and then it cannot be produced as any admission. Say in the letter that you are sending the chequein Full and Final settlement of all claims in respect of this property and thatby cashing it, she is confirming acceptance and if it is not accepted she should return it uncashed. Tell her that if she is in any doubt, she should take legal advice.

Can I clarify anything for you?

Please rate the service positive. It’s an important part of the process by which experts get paid.

I can still clarify things for you.

Best wishes.


Customer: replied 1 month ago.
If she does not accept this can she still stake her claim on house as she is telling me if I don't pay her 2 years rental she will come and go as she pleases . I am willing to give her the investment back and her share of profit as I want this sorted ASAP can she then decide that later on again if she refuses cheque to wait and then later ask for money again , how do I stop that from happening

What Customers are Saying:

  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther

Meet The Experts:

  • Jo C.

    Jo C.


    Satisfied Customers:

    Over 5 years in practice
< Last | Next >
  • Jo C.'s Avatar

    Jo C.


    Satisfied Customers:

    Over 5 years in practice
  • Ben Jones's Avatar

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    Qualified Solicitor - Please start your question with 'For Ben Jones'
  • Buachaill's Avatar



    Satisfied Customers:

    Barrister 17 years experience
  • Max Lowry's Avatar

    Max Lowry


    Satisfied Customers:

    LLB, 10 years post qualification experience
  • UK_Lawyer's Avatar



    Satisfied Customers:

    I am a qualified solicitor and an expert in UK law.
  • Kasare's Avatar



    Satisfied Customers:

    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • Joshua's Avatar



    Satisfied Customers:

    LL.B (Hons), Higher Prof. Dip. Law & Practice