Shared house, loaned money, how is this treated?

I am at imminent threat of divorce, my wife has taken my son and vanished, I am currently going through courts to gain access.

I have received a B94-1 form recently.

I have not been contacted by my wife for 10 months.

The property I live in is coinhabited with my parents, and this was also the matrimonial home (and back then it was also coinhabited).

I was and am paying the mortgage, but my family had lent me significant cash to get this house. I have a dated loan agreement which is witnessed last year stating I owe the money back.

For the house, my family gave 60% of the house price as a deposit and loan, the bank mortgage is 30% of the house, and I put in 10% as a deposit.

What rights would my wife have, the B94-1 says she has in her favour interest of the property.
When the divorce finally happens, will the family's loan agreement be assessed when working out the settlement, will it have a big impact?

Oh dear.

Parents are often willing to help their offspring buy a home, and may
make a gift to enable them to do it.

Then son or daughter then gets divorced and to their horror they find that their soon to be ex in law is making a claim against the home.

In these circumstances, what was intended to be a gift miraculously
changes into a loan.

But parents are now getting savvy and are becoming aware of the
risk that what was intended as a gift to their offspring can be
plundered by their in laws in the event of a divorce.

There is nothing wrong, of course, with parents making a loan to their children. But in that case it needs to be done properly, a
legal document must be drawn up and registered at the Land
Registry.

If it's done on the back of an envelope then there is a risk that the
Court may treat it as a sham and ignore it.

But if it is a genuine loan, the Court must, in my view, treat it as such.

LMM

Whose name is the house in? Did your parents go on the deeds or register a charge against the property?

You say they live there. Is that still the case?

Did you have legal advice about the loan and is there a paper trail to support what you say?

How long was the marriage and how old is your son? Do you know where she is living now?

Sorry for all the questions but it will help us build a better picture of the situation.

Hadenoughnow

LMM

Thank you for the reply, it is a proper loan, so it is a document that was created when I purchased the property by the family member, and it was signed and dated by myself and the family member and witnessed signed by a non relative, in your view is that legal enough or should a solicitor have been involved, it sounds trivial but even the email that I received from my family member containing the document is still in my Gmail so that it date and time stamped from last year?

Would you happen to know how the family member can lodge the document with land registry or is it now too late since the wife has now got an interest in the property? Or is it not legal enough as it wasn't created by a solicitor?

Hadenough,

Thank you for the reply.

The house is in my name, purchased it about 2 years ago.

My parents still live in the house and had done so since the purchase.

No legal advice about the loan, but I have the email that the family member sent to my Gmail account with the loan agreement which was sent about 15 months ago, and then I have a signed copy of that document which is also signed by a non relative. No solicitor was used to create it.

My son is now 16 months old. Marriage lasted two years, my wife stayed in the new property For about one year. She and my son are still missing and have been for 10 months, going via the courts to gain access.

Did your relative(s) who lent the money take legal advice ?

More specifically, did they register the loan as a charge against the title?

There is a danger from their point of view it could be treated as an unsecured loan if they have not registered it.

LMM

Thank you for the message, the relative had not and is yet to seek legal advice.

Is it too late for the relative to register a charge?