From: Damian 
Newsgroups: uk.finance
Subject: Messy breakup - legal position.
Date: Wed, 28 Jan 2004 14:17:16 GMT

Hi,

A friend of mine (honest!) has just split up from her boyfriend of 3 
years. Before they split she took out a loan on his behalf which still 
has £4500 outstanding. Only her name was on the application and it was 
verbally agreed that he would pay her a fixed amount each month to cover 
repayments. The only proof that the money was given to him is 2 bank 
transfers shown on her statement.

They also bought a house together which has increased in value and she 
wants to buy him out. The increase is around £9000 and he will accept 
£4500 from her as a buy out. She wants him to use this money to pay off 
the loan but he wants to take the £4500 and continue paying the monthly 
repayments to her for the loan. Is there any way she can force him to 
accept that the equity on the house will be used to repay the initial 
loan? Does she have a legal leg to stand on? Are there any other (legal) 
options?

Thanks.

Damian.