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  • Legal charge

    My partner and I are splitting up and as we have a child he wrote in our original Declaration of Trust he would loan me money on a new property until our son is 18 or I co-habit/remarry.
    We have agreed on the loan (it's 36%) of the value of my new property,
    and he is now asking that he gets 36% of the total value of the new property on return of his money.
    If I choose to return his money in a year at the projected house prices he will make 20% profit on his loan which is outrageous.
    He is threatening with a court case which I do not want but am feeling really pressured into signing.
    I have offered him a return of his money based on RPI (advice from my solicitor) but he refused.
    Any advice I would be so grateful for. Thanks

  • #2
    Surely it all depends on the terms written into the Declaration of Trust - does that not state what return (if any) he is entitled to for the loan?
    This is based on my experience as a conveyancing solicitor in England, but I do not accept liability for information I give in this forum

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    • #3
      No, it doesn't! The Dec of Trust just says money to be on looan!
      That's our problem that it doesn't say anything.

      Comment


      • #4
        So, is it arguable that the loan should be interest-free?

        This is a case where the relevant document needs to be construed. If it is unclear on its face, then the surrounding circumstances (correspondence, file notes, the understanding that the person who drew it up had of the parties' intentions, etc) can be taken into account.

        It is not a case where a forum such as this can offer any useful advice, except to consult a solicitor, which you are already. That solicitor should be asked to interpret the relevant part(s) of the Declaration of Trust and to advise on its effect

        Sorry that I cannot be more helpful
        This is based on my experience as a conveyancing solicitor in England, but I do not accept liability for information I give in this forum

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        • #5
          Thanks for getting back. My solicitor is trying to unpick it and she sees it as arguable. My ex is now wanting to take me to court rather than agreeing a compromise. I offered him interest based on RPI but this he just laughed at.
          He is making my home life quite unbearable and I know he does not want to go to court but he is very angry and proud. I would like to offer him an interest but not where it is a proportion as he has not adhered to correct valuation of our own house (he's buying me out) and it has taken months of arguing. That way we both know how much he'll get back with no arguing. As it is I am losing out on the value of our property by £15k, paying legal fees to move and then he also wants a huge profit of my new home. The home we live in will be very profitable for him when he sells and he also has another property he owns. On top of that he is quite successful in commercial property whereas I am a full time mum.
          He is now threatening that he wants me to pay half the household bills unless I agree to his offer.
          Sorry to go on but it is just a mess. Thanks for any help

          Comment


          • #6
            If he does not negotiate a fair compromisze, taking you to court would backfire on him - the court will not be impressed but will punish him by ordering him to pay costs.

            Your solicitor will know how to frame the correspondence to demonstrate that you are trying to negotiate a compromise while your ex is being difficult

            God luck!
            This is based on my experience as a conveyancing solicitor in England, but I do not accept liability for information I give in this forum

            Comment


            • #7
              Sorry - that should have been "Good luck" - I wasn't trying to infilrtate religion into the discussion! ;-)
              This is based on my experience as a conveyancing solicitor in England, but I do not accept liability for information I give in this forum

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              • #8
                Thank you Justin,
                I hope all the luck is on my side!!!
                Many thanks once again.

                Comment


                • #9
                  You're welcome!
                  This is based on my experience as a conveyancing solicitor in England, but I do not accept liability for information I give in this forum

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