tenants in common

granoftwo

I hold a tenants in common agreement with my husband and own half our home. I would like to release the equity in my half of the home to finance my daughters housebuy. My husband has agreed but wants to remain living in the home should I die, how do I go about it?

DVardysShadow

Probably this is best for the mortgages and endowments board. You need to keep up your payments and cover the loan itself with life insurance until it is paid off. Your age may make this more expensive.

CLAPTON

not many facts to go on

but
your husband and you will need to increase your mortgage if you want to 'release' equity from the house
you may want to adjust the % of ownership to reflect the difference amount of equity left

whether your husband can continue living in the house depends upon what your will says

granoftwo

Thanks for advice. Have offered other children option of buying out my share (no mortgage to pay off) as they would then inherit all of property, however they are not in a position to buy. Could I sell my half share to a bank/building society to raise the funds?

CLAPTON

some more facts would be good

1. is the current house owner without mortgage?
2, it is 50-50% tenants in common with your husband
3. if either of you die today what do your wills say about the future ownership of the decease's half
4. presumably you have children who are not your husbands?
5. does he have children who are not yours?
6. do you both have income
7 how old are you approx


banks don't buy property anyway and no-one except a relative will buy half a house for obvious reasons

why can't you simply mortgage the house?

granoftwo

Thanks for the interest
1The property is mortgage free
2 We have reciprocal wills
3 Both have 2 children each from previous marriages
4We are retired with state pension only
5I am 63 my husband 67

Any advice gratefully received

CLAPTON

and what do your reciprocal wills say about the ownership of the house on the first death?

granoftwo

Recirocal wills state on death house and property pass to surviving spouse.
We own the house 50/50
If I sold my share we would change our wills accordingly?

CLAPTON

you can get money from a property is several ways

1. sell and release money that way

2. mortgage; this doesn't seem feasible at your age and if you only have state pension to live on

3. equity release i.e. you receive money and make no repayments but upon death the house is sold and the lenders gets their money back.
however you are relatively young for equity release.


as I said there is no possibility of selling your share commercially.

Beckyy

As Clapton has said, you can't 'sell' half a house as nobody would be willing to buy half a house with a stranger.

As far as I can see your options are either to sell the whole house, downsize and gift your daughter the money left over or, equity release which would be at Clapton has said (not something I'd recommend though).

Although I think it's lovely you want to help your Daughter out, I'm not sure if it's really a viable option if you wish to stay in the property. If you do decide on equity release, please have the papers thoroughly looked over before you agree to anything.

granoftwo

Thanks for all the advice.
Am going to try to transfer my half to other daughter (for cash) and she will then inherit 3/4 of house on her Father,s death (other daughter will receive 1/4.
I have also been advised to talk to my bank or building society who could buy my share as long as they agree to let my husband continue living there for remainder of his days/