SMI question

randomlife

Scenario question - a parent and son co-own a property as joint tenants with an interest only mortgage. The son was eligible for the mortgage as he was in full time employment and the parent was not as she did not work and has not worked now for 20 years. The son lived with the parent in the property and met the mortgage payments and paid all bills for 3 years until he lost his job, moved to another country to find work and could not make the payments.

The parent ,now of pensionable age applied for and received Support for Mortgage Interest and also received help in paying the bills. This continued for a period of 5 and a half years, even though the son had returned to the UK after 16 months and was working again, although not living at the property.

Does meeting the interest only mortgage payments through SMI for 5 and half years as opposed to the 3 years that the son met the payments mean that the parent is entitled to more than a 50% share of the profits if the property is sold?

Any help with this complicated situation would be appreciated.

pmlindyloo

I think legal advice is required for, as you say, a very complicated situation.

randomlife

Its so complicated that 3 solicitors specialising in property/mortgage law have already been consulted about this and havent been able to offer an answer. Dont know how to proceed with this as DHSS naturally cant give out any info on whether or not the recipient of the SMI is providing false or misleading information about the ability or desire of the son to resume paying the mortgage. It seems as though the parent is hopeful that the longer this continues, the higher their share of the profit of the property when sold. Any ideas or info from anyone would be greatly appreciated.

Gogled

The issue is that there is unlikely to be a precedent (at least not want that went to court). As such, there will not be an answer per say.

Also, you have been speaking to the wrong people. You do not want a property lawyer. They will not have a clue about this kind of matter. What you need is a trust lawyer. This woman is effectively arguing that she has gained an interest in the property via a constructive trust.

I think she will likely be due back her contributions. As to a share of the property..... Difficult... Would depend on the actions of both parties.

randomlife

Thank you Gogled, thats interesting about the constructive trust and the fact that you need a trust solicitor. Will look at that, thanks again.