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Thomas
Thomas, Solicitor
Category: Property Law
Satisfied Customers: 7620
Experience:  UK solicitor holding an England and Wales practising Certificate.
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My parents lent myself and my ex partner ( not married) £25K

Resolved Question:

My parents lent myself and my ex partner ( not married) £25K with an expected monthly interest payment of £105 per month in May 2007. Only a few months interest was paid. We own a house with a Declaration of trust document for a 60/40 share when we sell the house.
Now my ex is contesting the money owed to my parents and only wants to pay back £12500, which is half of the original loan and not the interest which is to date £5080.
I want to sell the house but ensure my parent get the money they are owed.
How can I do this?
Submitted: 1 year ago.
Category: Property Law
Expert:  Thomas replied 1 year ago.
Hi, Do your parents have any written loan agreement for the money they have loaned your ex partner?Tom
Customer: replied 1 year ago.
No, sadly, the only information from him is an email he sent to my parents in Oct 2008.
"About the interest on the money you loaned us:"
1) The money was transferred to us end on May 2007.
2) Interest paid thru Moi’s bank account until 5 April 2008 was only £210, in July and August 2007 (£105 each month).
3) I can only imagine that we must have paid you in cash in most of the other months, but I have no record of where the cash went at that time.
4) We’ve paid you the interest through Moi’s bank account again since May 2008, but that’s outside the Tax Return period you are filing.
5) If you want I can write a statement that we paid you £105 in cash in each month between September 2007 and April 2008, although I am not 100% sure that we didn’t skip a month at some time.
Apologies I can’t be more helpful.That's the only record I have, where he recognises the loan and interest payments.
Now he is basically saying he disagrees with the interest
Expert:  Thomas replied 1 year ago.
Thanks. Drafting your answer now. 5 mins please. Tom
Expert:  Thomas replied 1 year ago.
Hi Thank you for your question and patience, I’m Tom and I’ll try to help you.Your situation as joint owner is clear; if you want the property sold and your ex does not agree then you can force the sale of the property by making (or posturing to make) an application to Court. If your partner cannot demonstrate sufficient finance to receive a mortgage offer to buy you out and transfer the equity in to his name then this may be your only option. A local solicitor would be able to do this for you and these orders are seldom refused by the Court. However, if you are minded to protect your parents then I would not do so until such time as their claim is resolved, since in a sense it is better that the loan monies are presently tied up in the property preventing him from spending or otherwise concealing the money or making it difficult for your parents to claim. As to your parents, they should consider see a solicitor about attempting to get judgement on their claim for the balance of the monies from your ex. Not having a written agreement is not helpful but there would appear to be enough in your mentioned email that suggests that there was a loan and so it is a question of amount. If they are able to secure judgement at court or an acknowledgement from your ex after pre-litigation dispute resolution on the total loan sum to be released upon sale then you can proceed with the sale on the basis that this sum is repaid upon completion of the sale. They key is consulting with your parents and taking decisions together to ensure that your two respective claims (yours: order for sale of the property, theirs: money judgement claim) are resolved in concert with eachother. My goal is to provide you with a good service. If you feel you have received anything less, please reply back as I am happy to address follow-up issues specifically relating to your question. Kind regards,Tom
Customer: replied 1 year ago.
Thank you, I'm a little confused about your last paragraph, "If they are able to secure judgement at court or..."
an acknowledgement ...after pre-litigation dispute resolution...
Can you explain what that means please?
Expert:  Thomas replied 1 year ago.
It means you can proceed with an order for sale if either (1) your parents/their solicitors are able to correspond with your ex and obtain an acknowledgement from him that he owes all of the money or if you are not able to get this - (2) judgement at court stating that he owes the money (your parents would have to litigate (to sue him at court) to get this. Please do remember to rate my answer.Tom
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