HunterF It is very difficult. Has this woman actually seen the evidence about the previous ownership arrangements for the property?
You could try and check again for yourself that there is absolutely no chance at all of this woman having any such legal claim to the property and get written evidence.
Then if she persists in spreading rumours about you could call her bluff and suggest to her and to those who collar you in street, that if she really thinks she is entitled she should make a proper legal claim.
Do get some further advice about her position though.
My nasty suspicious mind leaves me wondering if this is something she has tried before, I have heard of such things, but that is idle speculation.
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