How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Thomas Your Own Question

Thomas
Thomas, Lawyer
Category: UK Law
Satisfied Customers: 6536
Experience:  BA (Hons), PgDip, Practising Solicitor
28732269
Type Your UK Law Question Here...
Thomas is online now
A new question is answered every 9 seconds

I own a property divided into 4 flats. My bank, whom I had

Resolved Question:

I own a property divided into 4 flats. My bank, whom I had a loan with, obtained final charging orders against the 4 flats.
When I bought the property initially I was lent £80,000 by a friend although his interest was never put on the register. Now the bank are threatening to force me to sell the properties to repay their loan.
What can I do to protect my friends deposit? If I am forced to sell now he would get nothing. Surely, if I can prove he lent me the money to buy the house then something can be done to secure his money.
Submitted: 3 years ago.
Category: UK Law
Expert:  Thomas replied 3 years ago.
Hi
Thanks for your question.
To enable me to answer your question could you please respond to the following using the same numbering:-
1. Did a solicitor act on your behalf in the purchase
2. Did you tell them about your friend lending you money
Kind regards.
Tom
Customer: replied 3 years ago.
Hi Tom,

Yes, thanks for the Q's.
1) I did use a solicitors
2) I don't think I told the solicitor. The thing is, you usually don't want the mortgage co. knowing that you have borrowed money to use as a deposit as they tend to like you to have this as your own savings.

I have bank statements showing the loan made to me and I have made some repayments over the last 3 years. Also, my accountant has been lodging my accounts taking into consideration the interest I am paying my friend for the loan.

Regards,

Andy
Expert:  Thomas replied 3 years ago.

Hi Andy,

I'lll be able to answer in an hour.


Kind regards,


Tom

Expert:  Thomas replied 3 years ago.
HI Andy,


I’m very sorry it’s taken some time for me to get back to you, I’m afraid that I had connectivity issues over the weekend.

If it was intended that your friend would gain an interest in the property as a result of having lent you the money then this should really have been evidenced by both of you executing a Declaration Of Trust at the time which stated that you had x% interest in the property with him having y%. Your creditors can only claim against those assets which are yours, they cannot claim against those which aren’t and so this would have protected his interest in the property to the extent detailed in the declaration.

You can execute a declaration of trust now, stating that he has an interest in the property. The difficulty will be that your creditors will claim that either this is an artificial transaction designed to put the interest outside your asset pool (in which case they can apply to have it set aside OR they will argue that it was not evidenced in a Declaration because he was only a simply creditor by way of a loan and that he should not now be regarded to have an interest in the property because it apparantely suitable plans to acknowledge this were not actioned at the time of transfer.

You will have to gather the sundry evidence of the transfer of money (ie. the bank statements to which you refer) and any other supporting evidence from the accountant or other sources which indicate your intention at the time. You may then have to fight it out with the creditors I’m afraid.

It’s not an ideal situation and I can see it being resisted by your creditors unfortunately

If this has been useful please kindly click accept so that I may be rewarded for my time. If you do not click accept your money stays with the site and I do not receive any credit for the time I have taken to answer your question. You will not be charged any further money for clicking accept.


Kind regards,


Tom
Thomas, Lawyer
Category: UK Law
Satisfied Customers: 6536
Experience: BA (Hons), PgDip, Practising Solicitor
Thomas and other UK Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick Leeds, UK
< Last | Next >
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick Leeds, UK
  • I did not know a French Law service existed and I was very impressed with the speed of reply --- very professional. Many thanks! Ms. Baker Alfafar, Spain
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie USA
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
 
 
 

Meet The Experts:

 
 
 
  • Ben Jones

    Solicitor

    Satisfied Customers:

    8364
    Specialist in UK Law with expertise in UK Employment Law
< Last | Next >
  • http://ww2.justanswer.com/uploads/venkoj/2010-02-20_133027_ben_pic.jpg Ben Jones's Avatar

    Ben Jones

    Solicitor

    Satisfied Customers:

    8364
    Specialist in UK Law with expertise in UK Employment Law
  • http://ww2.justanswer.com/uploads/CH/chathamchamber/2011-4-24_191833_1.64x64.jpg INC's Avatar

    INC

    Solicitor-Advocate

    Satisfied Customers:

    3850
    LL.B, Pg.Dip, LL.M, M.B.A (Pending), Solicitor-Advocate. UK Practising Certificate issued by SRA., DIFC Courts Registered (Dubai)
  • http://ww2.justanswer.com/uploads/taratill/2010-03-09_111600_phpsik04M_c2AM.jpg Jenny Mackenzie's Avatar

    Jenny Mackenzie

    Satisfied Customers:

    2612
    Over 10 years experience in general legal matters
  • http://ww2.justanswer.com/uploads/matthewjones/2009-9-7_20342_picture_007.jpg Matthew J's Avatar

    Matthew J

    Solicitor

    Satisfied Customers:

    323
    4 y PQE (Partner) - Commercial / Residential Property & Property and Civil litigation experience
  • http://ww2.justanswer.com/uploads/TO/touchwoodsden/2013-12-6_91518_MeforJA.64x64.jpg Stuart J's Avatar

    Stuart J

    Solicitor

    Satisfied Customers:

    5198
    PGD Law. 20 years legal profession, 6 as partner in High Street practice
  • http://ww2.justanswer.com/uploads/RE/Remus2004/2012-4-22_93111_2bigstockPortraitOfConfidentFemaleL6943985.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    24742
    Over 5 years in practice.
  • http://ww2.justanswer.com/uploads/JO/Josh2010/2012-4-29_19490_GettyImages80121770B.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    6561
    LL.B (Hons), Higher Prof. Dip. Law & Practice
 
 
 
Chat Now With A Solicitor
Thomas
Thomas
Solicitor
6536 Satisfied Customers
BA (Hons), PgDip, Practising Solicitor