PLEASE READ BEFORE POSTING
Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.House ownership quandry
Options
grazb75
Posts: 8 Forumite
Hi,
First time poster, so please be gentle with me!
My wife and I owned a house in Lincolnshire. My mother-in-law lives in Essex and became ill (Alzheimers) and could not look after herself. To cut a long story short, we decided to sell up and move in with her about three years ago.
At the time MIL was able to still make decisions despite the fact that we had power of attorney. MIL decided that she wanted us to share the house ownership to make things easier if she passed away.
Another of the reasons for this was that after selling our house, we spent the proceeds of the sale after paying off the mortgage on fixing the many problems that MIL's house had, including a new kitchen, bathroom and downstairs extension.
We saw a solicitor who advised that the best way forward was for my wife and MIL to be joint owners. that would mean that on the death of MIL whole ownership would pass to my wife. My wife wanted me to be included in the ownership but the solicitor advised against this because if there was shared ownership, the house would be owned one third by MIL, a third by my wife and the same for me.
According to her, we could, in theory sell the house as we would be majority owner. The solicitor said that she was trying to protect the interests of MIL as she was the original owner of the house.
This leave me in a difficult position. If my wife dies before MIL, I have no financial interest in the house, despite the investment made in house improvements and the house, on the death of MIL, would go to the grandchildren, who are not blood relations to me (this is a second marriage).
My wife is very concerned as well as myself as this is not an ideal situation and I could be in a vulnerable position and potentially homeless.
Is there any advice as to how we can get over this problem? We did consider seeing the solicitor about this, but we have not been happy with the service received regarding this and other matters, despite that fact that they have been MIL's solicitors for many years.
Sorry for the long winded post!
First time poster, so please be gentle with me!
My wife and I owned a house in Lincolnshire. My mother-in-law lives in Essex and became ill (Alzheimers) and could not look after herself. To cut a long story short, we decided to sell up and move in with her about three years ago.
At the time MIL was able to still make decisions despite the fact that we had power of attorney. MIL decided that she wanted us to share the house ownership to make things easier if she passed away.
Another of the reasons for this was that after selling our house, we spent the proceeds of the sale after paying off the mortgage on fixing the many problems that MIL's house had, including a new kitchen, bathroom and downstairs extension.
We saw a solicitor who advised that the best way forward was for my wife and MIL to be joint owners. that would mean that on the death of MIL whole ownership would pass to my wife. My wife wanted me to be included in the ownership but the solicitor advised against this because if there was shared ownership, the house would be owned one third by MIL, a third by my wife and the same for me.
According to her, we could, in theory sell the house as we would be majority owner. The solicitor said that she was trying to protect the interests of MIL as she was the original owner of the house.
This leave me in a difficult position. If my wife dies before MIL, I have no financial interest in the house, despite the investment made in house improvements and the house, on the death of MIL, would go to the grandchildren, who are not blood relations to me (this is a second marriage).
My wife is very concerned as well as myself as this is not an ideal situation and I could be in a vulnerable position and potentially homeless.
Is there any advice as to how we can get over this problem? We did consider seeing the solicitor about this, but we have not been happy with the service received regarding this and other matters, despite that fact that they have been MIL's solicitors for many years.
Sorry for the long winded post!
0
Comments
-
Why doesn't your wife leave her 1/2 share in the house to you upon her death?0
-
My wife wanted me to be included in the ownership but the solicitor advised against this because if there was shared ownership, the house would be owned one third by MIL, a third by my wife and the same for me.
I don't understand why this advice was given - if the house had been owned on a tenants-in-common basis then each would have owned a one third share which could have been individually left in the respective wills BUT there was no reason why the three of you could not have been Joint Tenants- in that way, the house would simply have passed by survivorship regardless of any will?
http://www.landlordlawblog.co.uk/2011/05/17/owning-property-with-other-people-the-rules/?doing_wp_cron=1475063271.78295302391052246093750 -
Why doesn't your wife leave her 1/2 share in the house to you upon her death?
It appears that the property is owned by MIL and her daughter (OP's wife) as joint tenants- as such the property passes by survivorship - if daughter predeceases mother, then the property passes to mother.0 -
I too see no reason at all why you and your wife could not have jointly shared half of the house and the MIL has the other half. Seems odd that this was not suggested.
Is your wife an only child? If there are siblings is this deal fair to them also?0 -
Upon her death, the ownership goes back to MIL.Bluebirdman_of_Alcathays wrote: »Why doesn't your wife leave her 1/2 share in the house to you upon her death?0 -
Another thought - it is possible to sever (unilaterally) a joint tenancy.
https://www.gov.uk/joint-property-ownership/change-from-joint-tenants-to-tenants-in-common
But, in this case, where one joint tenant is "incapax" and the other joint tenant holds POA for her co-owner, it seems to me that it would be essential to take legal advice - the matter might need to be referred to the Court of Protection/Office of the Public Guardian.0 -
It does rather sound like you need to see a solicitor - and NOT mil's solicitor - who sounds like she has protected mil's interests totally at your expense.
Have you got proof of the money you have invested in mil's house - with all that renovation work? If a home-owner moves their girlfriend (or boyfriend) in to a house that they already own then, even if they are living together rather than married, the standard advice is to not let girlfriend/boyfriend spend any of their money on the house - as they would be due to receive a share of the house because of it if the relationship split up.
Surely the same principle would apply to you? - ie you would be due for a share of the house by virtue of the fact you've spent your money renovating it.
I'd be asking my (ie my OWN) solicitor whether that investment in renovation work would count. I'd also be asking if my wife's share of the property could be left to me (in the unlikely event of wife dying before mil).0 -
moneyistooshorttomention wrote: »
Have you got proof of the money you have invested in mil's house - with all that renovation work? .
Yes we have proof of everything that we have paid for in renovating the house.0 -
I too see no reason at all why you and your wife could not have jointly shared half of the house and the MIL has the other half. Seems odd that this was not suggested.
Is your wife an only child? If there are siblings is this deal fair to them also?
My wife is the sole beneficiary of the house on the death of MIL.0 -
Of course, in the same way as your wife's share would revert to the MiL on your wife's death.My wife is the sole beneficiary of the house on the death of MIL.
Can I ask... Is this a likely scenario? Your MiL is elderly and in poor health. She is very unlikely to outlive a healthy middle-aged woman. Yes, accidents happen - but they are very rare.0
This discussion has been closed.
Categories
- All Categories
- 343.4K Banking & Borrowing
- 250.2K Reduce Debt & Boost Income
- 449.8K Spending & Discounts
- 235.5K Work, Benefits & Business
- 608.4K Mortgages, Homes & Bills
- 173.2K Life & Family
- 248.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards