Parents potentially will try to enforce sale of our home.

[chris1975z]

Dear All
My parents provided my wife and I a £40,000 loan towards a deposit on our house a few years ago. We all signed into a trust deed whereby they could register their interest in the property in the event of a sale.
I'm sure I'm not the only one to have got into family disputes but needless to state the relationship with my parents has completely broken down. In the last few weeks we received a letter from their solicitors which required the land registry forms to be signed. We duly completed this in accordance with the terms of the trust deed. Since then we received an email from my parents threatening "further action" against us if we don't repay the £40,000. There is no loan agreement in place but I have paid interest each month at a rate of 3.5% as agreed from the outset verbally. It should be noted (and we would swear under oath to the same) that in my parents words "you'll get it when we die so you might as well have it now" was the basis on which the loan was offered.
I have replied to their threatening email simply referring them to the terms of the Trust Deed which they have now executed and therefore this concludes the matter. We don't have 40k to pay them back and can't release equity as the mortgage (fixed) was based on a 25% deposit so they will not release funds.
Anyone's thoughts on the above would be sincerely appreciated.

[Nikolai]

Re: Parents potentially will try to enforce sale of our home.

Although there's no written loan agreement, it seems that the terms agreed were that they lent you £40,000 for the term of their joint lives on an interest only basis. Presumably the rate of 3.5% is an annual rate? You have paid interest as agreed. You have also signed Land Registry forms at their request, although I'm a little vague as to why because you're not thinking of selling, and I don't know the contents of the Trust Deed so can't really comment on it. As long as the Trust Deed contains no repayment provisions I think you're ok. Do you know what Land Registry forms you signed? Their solicitors will use the LR forms to register some sort of interest or right against your property at the Land Registry. If you can say what LR forms were involved, I'll try to assist further.

[chris1975z]

Re: Parents potentially will try to enforce sale of our home.

Although there's no written loan agreement, it seems that the terms agreed were that they lent you £40,000 for the term of their joint lives on an interest only basis. Presumably the rate of 3.5% is an annual rate? You have paid interest as agreed. You have also signed Land Registry forms at their request, although I'm a little vague as to why because you're not thinking of selling, and I don't know the contents of the Trust Deed so can't really comment on it. As long as the Trust Deed contains no repayment provisions I think you're ok. Do you know what Land Registry forms you signed? Their solicitors will use the LR forms to register some sort of interest or right against your property at the Land Registry. If you can say what LR forms were involved, I'll try to assist further.

Thanks so much for your assistance on this. I can confirm the trust deed makes no provision for any repayment of the loan or any reference to any interest repayment..that was agreed verbally. The td just enables them to have the capital sum back in the event that we sell our property. We have signed and returned forms rx1 which simply enable them to forward to land registry to enter the restriction the td makes no reference to the 40k being repayable in any other way shape or form. The reason for not wanting to sell is simply that we love our home and don't see why we should be forced out of it.

[chris1975z]

Re: Parents potentially will try to enforce sale of our home.

Ps, I should have explained the reason they have done this when we're not thinking of selling is to protect their interest in the event that we ever do sell. They sent a subsequent email the other day stating that we won't expect to get it when they die as it will transfer to the beneficiary of their wills. All very emotive and unnecessary. Quite frankly, the 40k if ever we do sell really doesn't concern us. We just don't want to be left open and at risk of having to sell. Thanks so much once again for your ongoing assistance.

[wales01man]

Re: Parents potentially will try to enforce sale of our home.

Although they are gone now my parents would never have acted like tis and we would never do anything similar to our sons if only people stopped using money as a weapon it shows their shortcomings my family have always been and always will be my life not pawns to toss around and abuse at will i can see the stress its causing you but remember its only money not life and death.
god luck

[chris1975z]

Re: Parents potentially will try to enforce sale of our home.

Such kind words and so very true. I partly wonder whether senility is setting into them! I also have a brother who they did not speak to for more than 10years! Just hope they can't lay a finger on our home!!

[Nikolai]

Re: Parents potentially will try to enforce sale of our home.

Thanks for explaining further. I've had a look at the Land Registry form RX1 and you're right - it merely serves to inform anyone dealing with the registered title that a third party has an interest. I don't see how you could be forced to sell in these circumstances, so relax, you're secure in your home.
If you have any doubts, why not check the position with a property solicitor? It shouldn't cost you much (some may even advise you at a reduced fee or even free of charge as it's a one-off) and conveyancing lawyers can be found in most high street firms.
I had a similar experience myself years ago, not very nice. All the best for the future and let's hope common sense prevails.

[chris1975z]

Re: Parents potentially will try to enforce sale of our home.

Thanks for explaining further. I've had a look at the Land Registry form RX1 and you're right - it merely serves to inform anyone dealing with the registered title that a third party has an interest. I don't see how you could be forced to sell in these circumstances, so relax, you're secure in your home.
If you have any doubts, why not check the position with a property solicitor? It shouldn't cost you much (some may even advise you at a reduced fee or even free of charge as it's a one-off) and conveyancing lawyers can be found in most high street firms.
I had a similar experience myself years ago, not very nice. All the best for the future and let's hope common sense prevails.

Thanks so much for your assistance once again and your kind sentiments. Very much appreciated.