Q&A Reclaiming monies loaned to buy a house

Q.  I lent £15,000 to my son and daughter in law three years ago so they could buy a house. They have since split up, and my son has moved out of the property. Can I get my money back from my former daughter in law?

A.  If you signed a declaration of trust when your son and daughter in law bought the property then your interest has been protected and you can seek to recover your money. If no declaration was signed then you may make an application to court to have your interest in the property declared. However you will need to prove that you lent them the money in order to purchase the property and that the money was to be repaid at some point, i.e. when the property was sold.

It may also be worth considering whether the property will have to be sold during the course of any possible divorce proceedings and whether you want the money returned if your son were able to retain the property.

Andrew Hornsby, Solicitor

This article was previously published in the Stamford Mercury.