I am in the early stages of separation.
My father provided the deposit for our first home and later another amount as an investtment in a buy to let property. We paid him interest on the loan for the buy to let for nearly 3 years at which point we needed to move to a larger house. We asked dad if he needed his money back and he said that he would rather see us in a family home. The verbal areement was that we wold pay him when our finances improved or when the house was sold. He also offered to waive the interest on the second amountntil we were in a position to pay him. That has never happened (8 years).
Can anyone offer advice on how this would be viewed by the courts? Does the fact that we paid interest for a period of time make a difference?
Obviously now he is expecting his money to be paid back once the house is sold but this makes a big dent into our equity.
Hi I am in a very similar situation: my Dad lent me a large sum of money to put down as a deposit on the FMH. Luckily he got the solicitor dealing with the house purchase to draw up a Deed of Trust.
In your case I think the fact that you can prove that you paid money to your father shows it was a loan. You need him to get a letter drafted asap to confirm that he loaned you this money and was expecting it to be paid back.
The real problem is that even if the judge does accept it was a loan they tend to be considered soft, this means they can only be considered after needs of all parties are met, for most there is just not enough money in the pot for this to happen.
Another problem for judges is that all too often people will say my dad lent me this that and the other, here is a letter he wrote bla bla bla, in other words so many lie it''s hard to know which are genuine, if it''s from a bank fine, if it''s from family it tends to have little if any effect.
I had this when my wife and I initially broke up. I had just sold my property and needed to repay a loan that my father had given me. My wife had run to solicitors to initiate a divorce who told her to contact the solicitors dealing with the sale of the house and tell them to hold the money. That she should take 50% before even the loan was removed.