share of sale proceeds-my rights?

davidnoble

fiancee and i entered into a joint mortgage (tenants in common) to by a btl flat

We separated handed over her affairs to her brother
He has enduring power of attorney
Property held for 3 years- now in neg equity

Brother now treating money put into property by sister as a loan
his solicitors have drawn up an agreement which allows me to pay back her share of deposit
They also intend to place a 2nd charge on one of my other properties (yes, legally they can do this!)

MY question

His agreement gives him interest at 8% plus legal fees -so- what is position ,in future, if co mortgaged flat is sold at a profit?

Do I also have to give him/her a share of any profit too?

Seems very unfair-but- what is legal position please

(please no guessing-too important!)

many thanks in anticipation

David

getmore4less

I think you need to put more details of the purchase and the original agreement on what would happen with various events.

Some things are not clear?
What are you trying to do?
Why is you sister involved?
What is the 6% interest on?
Why are you paying the legals?


Looks to me like you need proper legal advice.

davidnoble

question put simply

in a jointly mortgaged property where mortgage is "tenants in common" - this actually 85% :15%

What are rights of each party as to any sales surplus

ie

outside of any personal agreement

What does law provide here for each

Here property in question is a BTL-although Im assuming its same for a regulated main res

Do we have anyone legally qualified to advise please??

David

getmore4less

Mortgages are not tenants in common they are joint and both parties are liable for the full amount.

describe the setup in more detail.

davidnoble

anyone else?

ViolaLass

Why not answer the questions you've had so far?

Dave_the_Ginger_Cat

Why should you pay back the deposit?

By doing any sort of legal transfer it appears to place more liability on you rather than less. If the flat's in negative equity, and you're tenants in common, you owe 85% of it, she 15%. The rights are the same as to a sales surplus 85:15

If you do enter into an agreement to repay a specific value, and release her liability completely, so long as the paperwork is done correctly, any amount you owe to her will not be affected by increase or decrease in house value.

I would recommend some legal advice, and personally would be inclined to sell it, take the loss and divide it up.