charge applied on my property- advice needed

[rubysky]

Hi Legal beaglers,

I need some urgent advice regarding a property that i own, the deeds are under my name and mortgage approved soley for my self. as in many circumstances over the years i have recieved help from my parents to raise money for the deposit and my mum is a garantor should i default on payments.

I have owned the property for several years, and now I am looking to sell my property which is in positive equity, however due to a falling out with my mum she is advising that she will put a charge on my property to recover any money she has helped with securing a deposit (£50k) for the house.


Is this possible? both my parents have helped my their two other children gaining a foot on the property ladder but now they are asking for money which has been given not loaned back?




I am very confused. and need some kind of help regards "charge on the property" i have looked into it and to my understanding its very different from a deed of trust which has never been drawn up and nor is there anything in writting to say my parents loaned me money.


many thanks for any replies.

[labman]

Re: charge applied on my property- advice needed

If there is nothing contractually giving your parents any sort of ownership or stake in the property, other than being guarantor, I think it doubtful they will be able to get a charge against it. Has she ever had to fulfil her duty as guarantor?

[meerkatsmimm]

Re: charge applied on my property- advice needed

My understanding (not much I might add) is that unless there is a contract, or your parents have credible witnesses confirming the money as a loan and not a gift, then they cannot get a charge. They would need to be seen to be seeking charges on your siblings properties too if they have also loaned/gifted money in a similar fashion.

phone a local solicitor who offers free legal advice

[rubysky]

Re: charge applied on my property- advice needed

no she has never been required to step in as guarantor. i appreciate your repliers, i think ill be going to the CAB and local solicitors to put my mind at rest. thankyou. RS.

[Nikolai]

Re: charge applied on my property- advice needed

It's not possible to put a charge on your property just like that. A charge is basically a mortgage - it secures money someone has lent you. Your property is the security. Think of your bank/building society mortgage - they didn't just put it on your house, you had to sign the deed of mortgage for that to happen. It's the same with this charge your mother's on about - unless you sign a deed it's not going to happen.
2 things to watch out for though:-
1. She might try to sue you for the return of the money she claims she lent you. If you don't contest such a claim she can get a judgement against you and then apply to the court for a charging order, which will give her the charge she wants over your house. So if you receive any court papers from her or solicitors' letters threatening proceedings, that's the time for you to act.
2. She might try to register what's known as a Unilateral Notice with the Land Registry. This is not a charge, but is a document registered against your title saying she has a claim or interest in your property. It's a few years now since I did one of these, but I think there is a procedure enabling you to challenge the registration. It's worth you calling the Land Registry enquiry line to discuss - there may be a procedure where they can alert you to any attempt to register anything.
If she tries to claim or register anything, your defence would be that the money was a gift, not a loan. A gift is absolute, and can't be recalled on a whim. A gift does not require repayment.
Don't sign anything for her, and keep a low profile! Come back if you need more help.

[Hurricane Puffrose]

Re: charge applied on my property- advice needed

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