Margaret Smith was the adoptive mother of Lisa Loveday and the aunt of Saul Reeves. Margaret had told Lisa that her parents and younger brother had died in a car accident, and raised Lisa since then. Margaret arrived in the village in September 2015 when she discovered that Joanne Cardsley had been searching for her, and blackmailed Joanne so that she could get money for her and Lisa to live elsewhere. During the exchange of the money, Joanne turned up with Lisa's family, Simone, Louis and Zack Loveday. Margaret was arrested for kidnap and charged. When Simone saw her leave the station, she ran up to Margaret and slapped her. Lisa later visited Margaret to find out why Margaret kidnapped her.
In November 2016, Simone visited Margaret in prison. Margaret accused Simone of physically abusing Lisa as Joanne had told her. Simone denied it and realised that Joanne staged the kidnap to get closer to Louis. Margaret and Simone are both disgusted by Joanne's actions, and Simone allowed Margaret to have contact with Lisa, believing that Margaret was the scapegoat of Joanne's actions.
In November 2021, Margaret's nephew Saul Reeves revealed to Grace Black that Margaret had died, and asked for him to look after Lisa on her deathbed.