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Help reclaiming property sale £s from ex


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Have a question about how to claim back £s from ex, now property sold?

 

Many years ago my relative sold their first home and used all the sale proceeds to pay the initial down payment on a family house - apx £300k.   

A mortgage on the balance of the purchase price was also taken out on the property. 

This house was legally in joint names - relative and their partner.   They  had a  very long-term relationship - with kids - but never married.      

The partner always paid the mortgage.   Although  - over the years this partner also remortgaged the property twice  - hugely - to pay off his parent's debts.

Unfortunately the relationship failed and the family home got sold.   

The proceeds from the sale got split, 50/50.

This doesn't seem a fair split.    Taking into account the huge £s the ex borrowed  - against the property - to clear his  own parent's debts. 

The ex-partner also refuses to consider relative's initial down payment  - 300k - should be treated separately, outside of any profit share.

It seems that relative has really been short-changed.

 

I am trying to research how relative can

a) get back the initial 300k down payment?

and maybe

b) get a larger % of the sale proceeds?   

 

Could relative serve a statutory demand on the ex for a) and maybe b) ?

The ex co-owns a property with a previous ex-wife.    His 50% share would  easily cover the 300k.   

Could relative get a SD and then a CO on this property?

This property may be going on the market soon... So it seems prudent - if it's possible - for relative to try secure an interest in it.

 

Any thoughts?

 

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They were not married, no legal agreements were entered into about the share of the equity in the property at any stage and therefore when it is sold, there is no legal basis other than a 50/50 split.

 

Suggest your relative speaks to a Solicitors to see if they are aware of any way to increase their share in the property, given the information in your post above. 

We could do with some help from you.

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Thanks UncleB

 

50/50 would be acceptable - IF the ex hadn't already taken out almost the exact same amount for his own personal use - i.e.: paying £s towards his own parent's debts.    The profit share would have been / should have been double. 

And the ex has also excluded the original cash amount invested by my relative.

The "deal" was that the ex would have repaid the £s paid to his family over time from his well paid job. But job got lost and relationship failed.   So ex then excluded the amount he'd already taken out of the profits.

 

The main issue now is that he has no £s - he's spent everything. 

Relative feels short-changed from a split that is not 50/50 of what should have been the profit share.  Ex has definitely gained more (albeit for his parent)

But relative doesn't think she'll ever get this amount reimbursed - cos he just doesn't have it.

He only has a 50% share in ex-wife's property.  As a compromise relative wants to demand back her original cash down-payment by making a claim on ex's share in this property.  It is a lot less than relative should be entitled to as a 50/50 profit share.

Can this be done?

 

 

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The same ex also borrowed £s from relative's elderly parents - 5-6y ago.

The ex promised to return the £s.

When relative's family house got sold the relative's elderly parents expected to be repaid from the sale proceeds - of which there was ample ability to repay.   

A letter email was sent to ex -  2y ago - reminding him for the £s to be returned.

He never replied.

 

Could the elderly relatives issue a statutory demand for the return of the funds - rather than do a money claim/ ccj?

 

Its a lot of money for the elderly relatives - many 000's - and they need the funds for making  essential (old age) alterations to their home.

 

 

 

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Posted (edited)

Just to be clear -

The ex remortgaged the family home to pay off his own parent's debts;

yet he borrowed from his partner's parents and has so far refused to repay their loans

a lawyer advised the relative's down payment should be returned before the 50/50 was apportioned - he didn't do this.

Meanwhile he doesn't consider the sums he took to pay off his parent's debts should be  off-set against his share of the profits in the 50/50  (or otherwise) split

 

Relative and their parents have a potential opportunity to stake a claim in his ex-wife's/his jointly owned property.

Am just trying to figure their best next moves?

Edited by HP Mum
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Everything is documented.

 

The elderly relatives only use cheques.  So each cheque was sent / documented why.    Sometimes the cheque was sent to relative but the equal corresponding amount was then sent to the ex.

 

All exes sums to cover his parent's expenses/ debts were  apparently logged as the £s were used mostly for company expenses.. Such as legal fees and company  debts - so  should be clear records there.   They were not expenses that should ever have been attributed to relative or the future 50/50 split of sale proceeds

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I need to check what was written and what was simply said.

I do know that he promised to repay the elderly relatives.

 

Personally,  it seems he's just a rogue.  The type that shuffles funds to try hide what he really does with it

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22 minutes ago, HP Mum said:

I need to check what was written and what was simply said.

I do know that he promised to repay the elderly relatives.

 

Personally,  it seems he's just a rogue.  The type that shuffles funds to try hide what he really does with it

 

There's a saying that could sum up your problem 'If it isn't written down, it didn't happen.'

 

HB

Illegitimi non carborundum

 

 

 

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yes.  

Well relative and relatives potential problem

Although I am sure there is enough written down to prove...

 

Could they each serve a SD on the ex?   Assuming they have the proof

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Sorry - there is a lot of proof.  I just dont know if for all of it.

 

The loans from elderly relatives would be a separate claim - could they send a SD to him to start with?

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I may not be explaining this very well. Has the ex signed one or more pieces of paper stating how much he was lent by your elderly relatives please?

 

If not, I'm not sure how they could prove they're owed the money.

 

HB

Illegitimi non carborundum

 

 

 

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Hi

 

The main issue they have is the were not married and there was not legal agreement in writing as to who pays what so the 50/50 split was in settlement.

 

When you say evidence it is difficult to advise when you don't state the exact evidence they have i.e. the cheque's, were they only signed over to this party concerned only or were these cheque's signed  over in the partiy concerned parents name.

 

It would be better if the party you are trying to assist would come onto CAG as the advice from getting it direct from that party would be more relevant to this issue.

 

 

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Relative should seek free consultations with Solicitors to see whether worth taking this to Court.  Think I remember reading in media of cases where unmarried couple have gone to Court to argue about perecentage of equity,.

 

A Solicitors should be aware of such cases and will advise on costs, plus how how long it would take to go through relevant processes.

We could do with some help from you.

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^^^^^^  This from unclebulgaria.  It's foolhardy with such amounts of money at stake that you (or your relative) are not taking paid for, professional legal advice.

 

Normally a 50:50 split would be what the law would support, but if your relative paid the whole of the deposit themselves and then the ex remortgaged twice to settle their parents' debts, then I'd be surprised if a court decided a bare 50:50 was appropriate.  But as others have said, it depends on what was agreed and what evidence there is, written or otherwise.

 

I hate to say it, but this demonstrates the perils of co-habiting without any written agreements or records as to who contributed what.  My wife and I co-habited for about 20 years before marrying but we kept meticulous accounts of our contributions to joint property just as if it was a commercial/business partnership.  We didn't need it, but we might have done.

 

You can't reasonably expect to get a reliable answer to this from a forum.  (And when I say "reliable", I mean professional legal advice that your relative can sue over if it turns out to be wrong!)

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Thank you all.

 

I am just asking for all  the paperwork so i can then collate and ascertain what is good enough evidence to substantiate a claim for both of them.

 

Manxman - I agree with you that a court should decide against 50/50 with such facts.   We just need to prove the facts.   And, as you say, perhaps take legal advice?

 

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I would want legal advice.  As unclebulgaria suggests some solicitors will offer 30 minutes advice for free.  Whether it's worth paying to retain someone to act for you is up to your relative and how much money is involved.

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So I have sat down with relative and gone through their details.

Relative has a legal document stating that one property sold and proceeds then used on family home.   

The sale proceeds were held by lawyer in their holding account before transfer.

This sum is indisputable.

 

There is a further large sum that "should be due" from the profit share.   

Relative can prove what sums were taken by ex for own personal use - which should have been considered as  his advance payments from potential future profits ie to be deducted off the final balance.     However, looking at ex's position realistically he won't have the funds to repay it.

 

It seems more prudent to lodge a claim just for the lump sum down payment that relative paid.

The proceeds of ex's former marital home will cover this.

 

Is it as simple as serving a SD and attaching the legal documents as proof??   Will ex then have just 18 days to respond/ defend?

 

As for relative's parents:

Nothing was put in writing by ex. 

He "asked" for the money.  He "promised" the money would be loans and he would repay.   

On "trust" relative's parents wrote several cheques.   

The "agreement" was that the loans would become due upon sale of the family home.

Relative's called in the loans upon the sale - and ex has failed to repay.

What would happen if relative parents served a SD on him?

 

 

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Posted (edited)
On ‎03‎/‎08‎/‎2020 at 00:59, HP Mum said:

  Although  - over the years this partner also remortgaged the property twice  - hugely - to pay off his parent's debts.

 

 

 

51 minutes ago, HP Mum said:

As for relative's parents:

Nothing was put in writing by ex. 

He "asked" for the money.  He "promised" the money would be loans and he would repay.   

On "trust" relative's parents wrote several cheques.   

The "agreement" was that the loans would become due upon sale of the family home.

Relative's called in the loans upon the sale - and ex has failed to repay.

What would happen if relative parents served a SD on him?

 

 

 

I'm confused!  Are you saying your relative's ex-partner borrowed money from your relative's parents in order to pay off his (the ex-partner's) parents' debts, and used the property as security?  Or was this loan from your relative's parents in addition to the double re-mortgaging?  It all seems a very Byzantine financial arrangement...

 

And also, from your first post:  "Many years ago my relative sold their first home and used all the sale proceeds to pay the initial down payment on a family house - apx £300k. "  Are you saying (1) the down payment was £300k, or (2) the total purchase price was £300k?  If you are saying(?) your relative has lost £300k or more, they do need paid for legal advice.

 

(Please don't take this the wrong way, but you and members of your family seem to be involved in some very unfortunate and complicated legal situations?)

Edited by Manxman in exile
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Posted (edited)

Manxman

1) The ex remortgaged the family home (the home he jointly owned with relative) - and used these funds to pay his own father's business and personal debts.  He bullied relative into agreeing.   Over the years their equity increased a lot - but he took a chunk out by remortgaging and sending all this money to his father.

 

2) Separately the ex also borrowed money from  relative's parents.   He used this money for his own use and promised to repay them when the family home was sold.  He hasn't.

 

3) the relative sold her first home and made 300k.   The next property  (the family home) was of higher value.  Her 300k was the down payment/ large deposit..  Then there was a mortgage for the balance of the purchase price.   When the house was sold she never got back the 300k.   The ex just split the proceeds 50//50.  Her lawyer had drawn  a doc that stated her 300k was separate from any joint profit share.  Ex did not honour this.   Again relative was bullied into agreeing.   Put in context, she was very sick (C) and has depression...

 

I agree this situation is unfortunate. 

I am furious with the ex for taking advantage of their vulnerability and intrinsic trust.   

I think they have a small window of opportunity right now  - with his former marital home being up for sale - to recoup their money.   This is why I am trying to ascertain if they can both serve a SD on him now (via process server) ???

Edited by HP Mum
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Hi HP Mum.

 

I apologise for saying this but I'm not the first on this thread. You're talking about large amounts of money and asking for advice online from people who are extremely well-meaning but with the best will in the world, we aren't lawyers.

 

Your relative could ring specialist property lawyers locally [see the Law Society Find a Lawyer function for ones in the right locality] and ask if they're able to help. They should be willing to talk your relative through the issues for up to half an hour without charging.

 

HB

 

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Illegitimi non carborundum

 

 

 

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honeybee - I understand.

 

In principle I am enquiring about the SD process.

 

I never knew this process existed until I had a lender attempt to serve one on me. 

I have a separate thread on this.   Which simply was: behind my back - knowingly at an incorrect address - a lender tried to serve a SD on me.  They somehow managed to get a substituted service of the SD.   I did not know of any of this at the time.  I recently discovered however, that they managed to secure another hearing, within 1 month, in which they tried to present a bankruptcy petition.   They failed at this point apparently as they could not prove service of documents.   They were given 2 months to serve the petition.   Then Covid got in the way and  the process got extended for months; I don't know when or if there will be a hearing...   In my case, despite being in constant email contact and serving them with a SAR - the lender failed to  ever alert me to this legal action.    But that is a digress.    What I really mean to say is that having had this process used against me, it seems to be a potentially useful process - as long as relative has concrete evidence - to speed up debt collection.

And I  guess I am wondering if anyone here has ever used a SD on anyone who owes them money?

 

I will suggest relative gets a free legal session with a lawyer anyway...

And  separately, relative's parents too.

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