2nd house/sitting tennants problem

Fredolsen

I think I mean sitting tennants.

Ok, bit long winded so please forgive me.

My sister has separated from her husband and is living in a house that she bought as an asset when they were married (different to the one her and her husband shared). The house she is living in is solely in her name and there are no legal claims to it from her husband.

Problem..

Her husband convinced her to take out a mortgage when they were together to purchase his mum and dads house and the agreement was that her husband would pay for this mortgage although she has taken it out, and his mum and dad could live in the house until there natural death.

Now my sister is separated she cannot afford to pay both and would like to sell the house that his mum and dad currently occupy.

Obviously there are some legal agreements for the tenancy but can anyone advise what the implications are if my sister asks the loan company to voluntary reposes the property as clearly she is never going to be able to afford this now.

I am sure a few people on this site will ask for more information and I will be happy to give you what I can.

It goes without saying that I have told her to go and see a solicitor but she is not happy to do this at the moment (I can hear the comments already).

Any help or advice would be greatly appreciated.

Fred

ruggedtoast

Are you sure they are sitting tenants? Sitting tenants have rights way above the usual "slightly more than guest in a hotel" ones that most ASTs confer in Britain. The rent is controlled, the tenancy has no end and its next to impossible to remove them.

As far as your sister asking the lender to repossess the house - well all she has to so is stop paying the mortgage and that will happen anyway. Her credit will be ruined, the mortgage company will then auction the house, probably for far less than she paid for it, and will then pursue her mercilessly for the shortfall.

Debt_Free_Chick

Fredolsen wrote: »

Her husband convinced her to take out a mortgage when they were together to purchase his mum and dads house and the agreement was that her husband would pay for this mortgage although she has taken it out, and his mum and dad could live in the house until there natural death.

The mortgage is in her name only and she is the sole owner on the Land Registry records .... yes?

And is there any written agreement for his M&D to occupy the property?

Is there a tenancy agreement?

Is there some other written agreement?

Now my sister is separated she cannot afford to pay both and would like to sell the house that his mum and dad currently occupy.

Obviously there are some legal agreements for the tenancy but can anyone advise what the implications are if my sister asks the loan company to voluntary reposes the property as clearly she is never going to be able to afford this now.

We need details of the agreement first.

If she asks the lender to repossess - and assuming they agree - then if the house is sold, she will be liable for any "loss" i.e. the difference between the selling price and the outstanding mortgage + selling fees + any costs/charges imposed by the lender.

It might be better for her to evict and then attempt to sell privately. Or, to re-let at the market rent, if that would cover her mortgage (and other letting) costs.

Fredolsen

Hi all.

Thank you very much for the advice thus far.

The M&D are not sitting tennants but the agreement was that they could live in the house rent free until they die or they decide to move on.

My sister is worried that if/when it gets repossed the M&D may be able to make a claim against her to include her current property which she is just managing to hang onto to keep a roof over her young kids heads.

The amount of the mortgage was less than half the value of the house so even if it is sold for half it's value there will be nothing outstanding to pay.

Once again, very grateful for any help and the more info I can get the better and I will try and convince her to go and see a solicitor but I feel at the moment that if there is something that can help her with the dilema within this forum than she may find strength in it and indeed go to a solicitor more confident.

Fred

inmypocketnottheirs

Your sister really must get proper paid legal advice. Playing Monopoly in real life is a complicated game. One really must understand the rules.

Debt_Free_Chick

Fredolsen wrote: »

Hi all.

Thank you very much for the advice thus far.

The M&D are not sitting tennants but the agreement was that they could live in the house rent free until they die or they decide to move on.

The problem is that if she sells it, then the buyer's will want "vacant possession" in order to complete i.e. partner's M&D will need to be evicted (if that's possible)

The only other option is to sell it as an investment property. But the buyer will want partner's M&D to pay rent and a buyer might not be interested if M&D have lifetimes' right to occupy.

Legal advice ...... please!

Loretta

I am not sure I understand this, you say in your first post that the M&D's house the mortgage is in your name and your husband pays the mortgage. Does she think that he will not continue to pay the mortgage?

if the M&D live there rent free they are not tenants and have no rights, if your husband stops paying mortgage, as the owner, OP should ask them to leave and sell the house with vacant possession, she should not feel bad about this, husband agreed to pay mortgage and if he now doesn't it is him who will look bad. Surely all these properties will be sorted out with the divorce, there is no reason for the house to be reposessed

Proper legal advice is needed

tbs624

Your sister needs qualified legal advice for this one - it is far too complex for a forum.

I'm presuming she's going to proceed from separation to divorce, and if this is the case has she got a lawyer for that yet?

You stated

.." living in a house that she bought as an asset when they were married (different to the one her and her husband shared). The house she is living in is solely in her name and there are no legal claims to it from her husband."

but if she's going to divorce all finances/assets of either party have to be brought into the equation. It seems strange that your sister seems to be funding both houses, and there's no mention of contribution from her husband for the house that his parents are living in?

Good matrimonial lawyer needed,and your sister needs to get cracking with it straight away: she does not need to ruin her credit record to get this sorted out. You're obviously a supportive brother so convince her to ask around for personal recommendations for a lawyer or contact the Law Society online.

neverdespairgirl

I may have misunderstood this, but there seem to be 3 houses here? The matrimonial home, the one solely in your sister's name, and the house the in-laws live in?

You can't just say that the house is in your sister's name and therefore the husband has no claim on it - they were married, so it's all up for division.

With 3 houses in the equation, proper legal advice is needed.

Fredolsen

Once again, thanks to all.

For clarification, When my sister was married she and her husband shared a house where they both paid the mortgage, during this time she purchased a house as an asset for when she retires etc (it was in a very bad state and she has worked on it over the years). Her husband suggested that they buy his parents house at a discounted price in order to give his M&D some spending money and lket them live there rent free.

As my Sisters husband had bad debt he could not get a mortgage so every thing was in my sisters as she had a good job and good money (both of which she no longer has.

He being a **** has run away abroad and it does not look as though he is coming back although I know from experience that has soon as you start listing your assets for disposal, friends, relatives start coming out of the woodwork.

Will hopefully get my sister to go and see a solicitor soon.

Many thankks once again to all

ruggedtoast

Good grief - What is this agreement!? People keep asking you and you keep not telling us.

If she has signed a contract with them them unambiguously stating that they can live in her property rent free until they die then they might have a case.

If the agreement is verbal then they cant.

This is absolutely fundamental to your entire question.