Coerced to sell.

[kefte]

Hi,

I need to know where I stand regarding a specific legal situation, whether you think I could get legal advice, and if morally you think I should take legal action.

7-years ago my partner owned a rental property, half of which owned in my name but in trust to him - I had inherited half of the property - and half was under a business loan (this half had previously belonged to my brother, but my partner bought him out). The property was bought for £120,000. With some extra business loan, money was spent on the property and it was let-out.

3-years ago, the property was vacant, and my partner's parents were also needing a home. Under my objections, my partner let them let the property. They made lots of alterations and put sums of money into a new kitchen, bathroom, garden, fitted furniture throughout...

My partner had financial difficulties with the bank and business loan, this was made aware when they let the property out, and something we were resolving.

2-years ago we decided to sell the property. My partner's parents refused to let us sell it - emotionally blackmailed us with the amount of money they'd put in, and pointed out how they had helped us in the past. In the end my partner agreed to sell them the property, but they couldn't get a mortgage for the whole property - so they bought it for a half of its worth. The property at the time was worth £140,000 - it was bought for £70,000 1-year ago. So my half, my inheritance, was given to them in equity. I tried to stop the sale, in lots of ways, I even found out the lenders of the bank and sent emails to them....I didn't need to sign anything for it to be sold.

At the time I was bullied, and I realize now in an abusive relationship. I signed a contract handing the property over to my partner 'in trust' though, and I allowed this to happen. Is my equity lost, or can I legally fight for it back?

And should I morally fight for it back. I am taking away a couple's home, my children's grandparent's home - a home they have worked-hard to make look good. I'm not sure if morally I can be the person who turns other people's lives upside-down.

[Openlaw15]

Re: Coerced to sell.

Hi,

I need to know where I stand regarding a specific legal situation, whether you think I could get legal advice, and if morally you think I should take legal action.

7-years ago my partner owned a rental property, half of which owned in my name but in trust to him - I had inherited half of the property - and half was under a business loan (this half had previously belonged to my brother, but my partner bought him out). The property was bought for £120,000. With some extra business loan, money was spent on the property and it was let-out.

3-years ago, the property was vacant, and my partner's parents were also needing a home. Under my objections, my partner let them let the property. They made lots of alterations and put sums of money into a new kitchen, bathroom, garden, fitted furniture throughout...

My partner had financial difficulties with the bank and business loan, this was made aware when they let the property out, and something we were resolving.

2-years ago we decided to sell the property. My partner's parents refused to let us sell it - emotionally blackmailed us with the amount of money they'd put in, and pointed out how they had helped us in the past. In the end my partner agreed to sell them the property, but they couldn't get a mortgage for the whole property - so they bought it for a half of its worth. The property at the time was worth £140,000 - it was bought for £70,000 1-year ago. So my half, my inheritance, was given to them in equity. I tried to stop the sale, in lots of ways, I even found out the lenders of the bank and sent emails to them....I didn't need to sign anything for it to be sold.



At the time I was bullied, and I realize now in an abusive relationship. I signed a contract handing the property over to my partner 'in trust' though, and I allowed this to happen. Is my equity lost, or can I legally fight for it back?

And should I morally fight for it back. I am taking away a couple's home, my children's grandparent's home - a home they have worked-hard to make look good. I'm not sure if morally I can be the person who turns other people's lives upside-down.

hello Kefts, welcome to legalbeagles.

His parents did not have ownership of the property so had no right to force you to sell the property. They may have had interest at best which could have easily been defeated. Yes you could still do something about it now as it's only been 2 years. It was an abusive relationship, you say, but was there any domestic violence as well as financially abusive. Explain what you mean by handing over the property 'in trust.' Was the property owned by you both as a joint tenancy agreement, ie were you paying the mortgage jointly? If so the bank has to make sure you consent to a sale, as the bank simply also owes you a duty to ensure that you as owner were not coerced (ie forced) into selling. Contract must not be made by coercion either or they're legally void. What were the terms of the contract? Were there any witnesses? Were bank staff present? His parents himself, and the bank, are all potentially liable. What was the effect of this contract and why did you agree to it?

However, if you had taken your name of the property's deeds voluntarily it means you were left vulnerable. Were you coerced to do this? Is this what you mean held 'in trust.'?

[kefte]

Re: Coerced to sell.

. Explain what you mean by handing over the property 'in trust.' Was the property owned by you both as a joint tenancy agreement, ie were you paying the mortgage jointly? If so the bank has to make sure you consent to a sale, as the bank simply also owes you a duty to ensure that you as owner were not coerced (ie forced) into selling. Contract must not be made by coercion either or they're legally void. What were the terms of the contract? Were there any witnesses? Were bank staff present? His parents himself, and the bank, are all potentially liable. What was the effect of this contract and why did you agree to it?

However, if you had taken your name of the property's deeds voluntarily it means you were left vulnerable. Were you coerced to do this? Is this what you mean held 'in trust.'?

Trust - when my partner got a bank loan for his half of the property, I wasn't included in the bank loan and I signed a document giving my half of the property which I owned outright 'in trust' to him - this document was drawn-up by the bank (lenders). It didn't legally become his, but he owned it in my name. I don't have a copy of the document I signed, but I imagine I could get a copy. We didn't pay the bank loan jointly - the bank loan was not in my name at all.

I have emails that show I was trying to prevent the sale, and messages to my brother telling him I didn't want it to go through. Plus, I spoke to my brother and his partner - he had a stroke at the time of the sale, and was unable to help me.

I don't know if my name was taken off the deeds; I trusted my partner to do what was right for us in our relationship. I didn't sign the deeds over to him, I know that. No conveyancer was used. I signed a document on behalf of the lender. I suppose I would know more if I had a copy of that document? Could I contact the lender and ask for a copy? Or would I have to ask my partner for a copy? I'd be unwilling to the latter, because I don't want him to know what I'm investigating and why, and I know he would not do it for me.

Thank-you for you help.

[Openlaw15]

Re: Coerced to sell.

Trust - when my partner got a bank loan for his half of the property, I wasn't included in the bank loan and I signed a document giving my half of the property which I owned outright 'in trust' to him - this document was drawn-up by the bank (lenders). It didn't legally become his, but he owned it in my name. I don't have a copy of the document I signed, but I imagine I could get a copy. We didn't pay the bank loan jointly - the bank loan was not in my name at all.

I have emails that show I was trying to prevent the sale, and messages to my brother telling him I didn't want it to go through. Plus, I spoke to my brother and his partner - he had a stroke at the time of the sale, and was unable to help me.

I don't know if my name was taken off the deeds; I trusted my partner to do what was right for us in our relationship. I didn't sign the deeds over to him, I know that. No conveyancer was used. I signed a document on behalf of the lender. I suppose I would know more if I had a copy of that document? Could I contact the lender and ask for a copy? Or would I have to ask my partner for a copy? I'd be unwilling to the latter, because I don't want him to know what I'm investigating and why, and I know he would not do it for me.

Thank-you for you help.

Update: the upshot of what I state below is, you should call a lawyer asap using the Law Society, or if you're on a limited income you may be entitled to legal aid. From what you have told me I think you have a good case. How much did you receive from the sale of the property to your ex partner's parents? Your remedy is to claim for damages ie compensation for your losses. What your partner has done may be a crime too, even crime against the bank potentially. The crime against your partner could be fraud, if he lied about you being the owner or for harassment under the Protection from Harassment Act 1996. You could alternatively try to do this without a lawyer and am sure the Legalbeagle community will help you do this, ie Rob. However, be also aware of the costs involved, ie legal costs for the other person (opponent's) lawyer. I have merely done a law degree so my knowledge is largely academic but the Legalbeagles is largely practical, ie through experience.

You

When you say partner, were you married then (and now divorced?), or just co-habiting, ie 'living together? So, you're saying you owned 50% of the property through an inheritance (so who inherited the other 50%). The property all together was purchased for £120k? You had 50% of the property in your name at that point (but not if you did not put your name on the deeds). Was the property registered or not incidentally, as after 2003 all properties must be registered on the property register. Your partner had the other 50% through a later business loan. Was there a land charge, ie security for the business loan on the house, if so it was likely a mortgage loan. How else did the bank have security on the property if the business loan payments were stopped? You say, "I signed a document giving my half of the property which I owned outright 'in trust' to him - this document was drawn-up by the bank (lenders). It sounds to me like this was the property's deeds. Why did you sign this document (what is likely the legal interest on the property, ie the deeds), as it made your interest in the property vulnerable ie through an implied trust, where alternatively a deed interest is water-tight. If you didn't sign the deeds over to him he and the bank would have required your permission to sell the property. Who asked you to sign the documents (to likely to take name off the deeds) and why? What did you think at the time, what did a trust mean to you, who used the term 'trust' to you? Why do you use the term trust to explain the situation to me? I am trying to find out if you knew what was going on and what the effect of a trust was. You could make a subject access request to the bank to trace any relevant documents where you were personally affected.

Parents

Your ex partner's parents at best had an interest in the property when they put money into it. However, there was no legal obligation by you to sell it to them. They were merely tenants with permission to stay there or alternatively had a lease, ie paying x amount for y amount of years. You can potentially sue the parents for damages (ie compensation) for your losses in terms of the value of the equity and the difference between purchase price. I am not sure whether the parents have committed a crime, it does not seem likely unless it is harassment which I believe is a criminal offence under said Harassment Act.

[kefte]

Re: Coerced to sell.

Update: the upshot of what I state below is, you should call a lawyer asap using the Law Society, or if you're on a limited income you may be entitled to legal aid. From what you have told me I think you have a good case. How much did you receive from the sale of the property to your ex partner's parents? Your remedy is to claim for damages ie compensation for your losses. What your partner has done may be a crime too, even crime against the bank potentially. The crime against your partner could be fraud, if he lied about you being the owner or for harassment under the Protection from Harassment Act 1996. You could alternatively try to do this without a lawyer and am sure the Legalbeagle community will help you do this, ie Rob. However, be also aware of the costs involved, ie legal costs for the other person (opponent's) lawyer. I have merely done a law degree so my knowledge is largely academic but the Legalbeagles is largely practical, ie through experience.

Thank-you for reply. And I apologise for my late-response. I am trying to get my life-together, and I have recently been doing A-level exams and it has been quite consuming - especially with a acceptance to study medicine resting on my grades.

I didn't receive anything from the sale per se, it all went into my partner's bank account (around £15,000). However - I have had access to spend these funds with his permission.

The sale took place in 2009, whereby the property was 50% mine outright (in trust) and 50% my partner's (in the form of a bank loan). It wasn't the deeds - it was a contract. I've signed deeds before, this was something very different. Although I had to go to a solicitors and have them look-through it and explain the contract to me. It basically relinquished my right on the property to the bank if my partner didn't pay the loan-back, or if the property was sold and the bank loan needed to be paid - all-in-all it meant I relinquished my right on the property. I wish I had a copy still.

We are not married - cohabiting.

I was 17 when my mother died in late-2004, the same year I met my partner. By early-2009 I had two children (one newborn and one with severe disabilities - Dravet Syndrome), I hadn't worked properly since my mother's passing and I wasn't in the right-frame of mind (frankly). My partner had a good-secure job, and I wanted him to take all responsibility on of the bank loan for the property. I can barely remember what I signed, to be honest; I know it wasn't the deeds, but a contract written-up by the bank (lenders) to make-sure that my claim on the property was relinquished (for their security).

You must think me foolish. And I agree, I am, or I have been.

I'll try the subject access request.

And this next-couple of weeks I'm going to contact The Law Society and perhaps make an appointment at a nearby solcitors.

Thank-you.

[Openlaw15]

Re: Coerced to sell.

Thank-you for reply. And I apologise for my late-response. I am trying to get my life-together, and I have recently been doing A-level exams and it has been quite consuming - especially with a acceptance to study medicine resting on my grades.

I didn't receive anything from the sale per se, it all went into my partner's bank account (around £15,000). However - I have had access to spend these funds with his permission.

The sale took place in 2009, whereby the property was 50% mine outright (in trust) and 50% my partner's (in the form of a bank loan). It wasn't the deeds - it was a contract. I've signed deeds before, this was something very different. Although I had to go to a solicitors and have them look-through it and explain the contract to me. It basically relinquished my right on the property to the bank if my partner didn't pay the loan-back, or if the property was sold and the bank loan needed to be paid - all-in-all it meant I relinquished my right on the property. I wish I had a copy still.

We are not married - cohabiting.

I was 17 when my mother died in late-2004, the same year I met my partner. By early-2009 I had two children (one newborn and one with severe disabilities - Dravet Syndrome), I hadn't worked properly since my mother's passing and I wasn't in the right-frame of mind (frankly). My partner had a good-secure job, and I wanted him to take all responsibility on of the bank loan for the property. I can barely remember what I signed, to be honest; I know it wasn't the deeds, but a contract written-up by the bank (lenders) to make-sure that my claim on the property was relinquished (for their security).

You must think me foolish. And I agree, I am, or I have been.

I'll try the subject access request.

And this next-couple of weeks I'm going to contact The Law Society and perhaps make an appointment at a nearby solcitors.

Thank-you.

Hello again, Kefte

Hope your career in medicine works out for and no problems for the delay in getting back to me. Do you have a copy of the property's land registry details; a copy of the Will giving you 50% of the property on trust? What makes you think it is on trust? Trust in a Will usually means term that protects the gifts if for some reason the gifts failed, so they return to the estate (interests of dead person).

[kefte]

Re: Coerced to sell.

I don't have a copy of the land registry's details - only current title, but not the deeds. I can request these though, and will do.

It's just how ('in trust') the bank described it when I signed the contract relinquishing my rights to my half of the property in favour of the bank - perhaps, they description was perhaps not legally accurate - merely a way of describing the document in lament terms? I have sent off a Freedom of Request form for the contract I signed - but I fear they may not have a copy anymore.

I have approached a couple of solicitors through recommendations - but, I feel to get the most out of the initial free consultation, it would be best going-in with all documents to hand. So i'm gathering those-up. I just hope that I don't leave it too long so that nothing can be done. The house exchange on 23rd Feb 2015.

And, thank-you for you replies. I wish I could convey how much your responses have helped - even just to get my mind in order.

[Openlaw15]

Re: Coerced to sell.

I don't have a copy of the land registry's details - only current title, but not the deeds. I can request these though, and will do.

It's just how ('in trust') the bank described it when I signed the contract relinquishing my rights to my half of the property in favour of the bank - perhaps, they description was perhaps not legally accurate - merely a way of describing the document in lament terms? I have sent off a Freedom of Request form for the contract I signed - but I fear they may not have a copy anymore.

I have approached a couple of solicitors through recommendations - but, I feel to get the most out of the initial free consultation, it would be best going-in with all documents to hand. So i'm gathering those-up. I just hope that I don't leave it too long so that nothing can be done. The house exchange on 23rd Feb 2015.

And, thank-you for you replies. I wish I could convey how much your responses have helped - even just to get my mind in order.

If 50% of the property is held on trust to you it will be recorded in some form on the property's land register. In trust, sounds to me like a beneficial interest (ie not watertight like a deed) to the property. With property there are two type of ownership, legal (via deed and registered), and beneficial ownership (not watertight at this stage). A beneficial interest can be through a contract but not on the deed so not registered on the land register. When a person signs their name on a deed and it is registered (on the land register) it is a legal interest (ie watertight). A beneficial interest in your situation would have been actual ownership (beneficial) but not on deed or registered, so not watertight. As it relates to property you can make a claim for damages against your partner, his parents, or the bank up to 12 years from the situation.