Stuck in a mortgage with sibling

diamondeye_2

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Niv

Will they need to 'claim' a higher percentage of the profits. Surely you will willingly give them more as they are now paying a bill whichn is your liability

diamondeye_2

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RAS

So you need to keep a record of exactly who paid what so that you can prove the situation.

What arrangments did you make for the ending of your joint ownership when you bought the house?

Could they get a mortgage to buy you out?

diamondeye_2

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arrizel

Hi diamondeye
I'm new to moneysavingexpert but I have been investing in property for a few years. I am in a similar situation where I have bought a property with my sister with same as you tenants in common 50/50, join mortgage etc except I didn't have the deed of trust (or declaration or trust)

To my understanding tenants in common stipulates that 50% of that house is owned by you therefore if it was sold your share should go back to you even if you haven't paid into it.....they could try to sue you afterwards but that's a different ball game altogether.

I don't believe you can force them to sell unless the other party is mentally incapacitated??

There are means and ways around persuading them to sell or to act to do something that everyone benefits but without details it's difficult to offer a solution, sorry.

I actually don't pay anything into the house I have with my sister (I don't live there either) but the agreement we have is that I help and manage the property for her whilst she and other tenants pay rent to pay mortgage and all the bills.
We used my wages to increase income multiples so for my 'wages' and accepting liability should any payments default I thought it was a fair trade especially now that we are financially linked.

If your only issue is not paying into the property (which you aren't doing now anyway) then I would suggest talking to your sibling and discussing what you both want to achieve. If the mortgage is paid monthly in full - what is your concern? Or do you need the money out of the property to move on in your life?

Oh! And they may be sub-letting or renting a room out. Mortgage companies don't have an issue with this as long as they're advised because they will ask for tenants to sign a waiver of some kind - more prudent when it comes to remortgaging.

Good Luck

diamondeye_2

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MilneBay

Hi diamondeye

What is ther amount outstanding on the mortgage? Will what you have already paid off cover the diffence in the price between what you paid and what you are likely to get for the house, legal fees and estate agent costs? I.e is there likely to be any 'profit' to split?

If not, then much as I can see why you want to move on, is it really sensible to do so? If your sister is happy to carry on meeting the cost would it not be better for you just to save for a deposit and think about buying in a year or so? You could always rent in the meantime.
The alternative otherwise is that you both end up saddled with a debt paying off this house and neither of you have anywhere to live. Unless I'm misunderstanding? MB

RAS

If you need to end the relationship, I think you need a very very hard convesation in which you tell them this and that they have a short time period to come up with a deal that meet both requirements. And if they do not do that, you will have to take legal advice about forcing a sale. That conversation might concentrate their minds but I would put it in writing afterwards.

You alos need to get a least one low cost session with a good lawyer before you do this, because the one who did the conveyancing seems to have been lax.

diamondeye_2

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arrizel

Hi
Yeah, I know the feeling there....the only way I was able to get a residential mortgage for my home now was to change all my existing mortgages to buy to let. Once you've done this and it's been recorded, when applying for a residential mortgage this would need to be declared and would be better seeing a specialist about this (doesn't mean expensive btw)
It would mean however, that your sibling would have to move out.

It's not an ideal situation for your sibling but it's one you both can benefit from in the end. If they move out and rent out until the housing market improves then they could obtain a far substantial deposit to buy a place of their own. You'll be clear to get your residential mortgage and can both walk away having obtained something (albeit in 5 years)
This can be accomplished completely hands free of both of you so there's no questions as to who's doing what also.