Tenants in Common - Obtaining a mortgage

jscally

My Sister, Brother & I joint own our parents house after their deaths.
My Brother & Sister live in the house (which has no outstanding mortgage) and I have my own property.
My Sister wants to get a small mortgage to consolidate some debts, but the mortgage company have said that my Brother & I will have to sign over our shares of the house in order for her to do this.
Is this correct, or is there a better way of doing this ?
I have heard that we may be able to sign a 'consent to mortgage' form to assist this but I know very little about it. Can anyone offer any advice ?

Robert_Sterling_3

As things stand if there is a mortgage all three will be jointly and severally liable for the debt.

i.e. If your sister does not pay it then the other two will have to pay it. Maybe you alone will have to pay it.

You & Brother could perhaps buy her out.

jscally

Does that mean all three of us have to apply for the mortgage, or do we just have to sign something to say that my brother & I will be liable if she doesn't pay it ?

I already have a mortgage, so do not want to take out another.

We couldnot afford to buy her share between us.

C&G told her that the deeds would have to be changed so that it is just her name on them, so my Brother & I would effectively have to sign the house over to her.

She only wants £17k and the house is worth about £300k

Robert_Sterling_3

How much is the existing mortgage?

smartpicture

If you can't afford to buy out her share, could you afford to buy out part of it? So at the moment you all own 33% each of the house, currently £100k each. Could you & your brother give her, say, £20k, on condition you sign a proper agreement with solicitor saying that she now owns 80/300ths of the house and you two own 110/300ths each? I don't know all the implications, you would definitely need solicitor input and to get the house revalued for the current price, but could be an alternative route.

getmore4less

There are a number of other issues here.

1. This is not your PPR so is subject to CCT assesment on your share when you dispose of it

2. They should be paying you rent(have you waved this

3. What are the arrangments for maintenance?

Back to the mortgage sitution,

Consolidation is usually not a good idea and having a charge on the property will impact you.

Sis needs to look at all the options for dealing with her debt securing should be the last resort.

jscally

There is nothing owing on the house at present. The mortgage was paid up many years before my parents died.

I have waived the right to charge my Sister & Brother rent, as this was my Father's wish in his will. I am fine with that aspect.

My Brother & Sister pay all the bills & general maintenance on the property. I only chip in when it's something major like new windows or re-wiring the house.

My Brother & I are not in a position to buy her out either partly or completely.

I'm beginning to see that this is not a straightforward issue and I appreciate all your input.