opinions please

chazall

Ok so going to keep this as simple as i can.
4 yrs ago i met my fiance lee, he was living at home and had morgage on his parents house.
His dad had basically became very un-well and was told he couldn't work no more. They couldnt afford the morgage, So
lee decided to help.
Lee got a £70,000 morgage the house is at worst worth £140,000 (currently). So the deal was we they died lee would own
the lot giving him a great amount of equilty. Lees dad sadly died around two years into our relationship, leaving only
his mum at the Family home. Lee & myself and our baby girl (now 3) have been renting off my parents only paying £200
month until now, so have been very lucky.
As you can imagine although i understand lee's initial intentions and thoughts, this is not working no more. I think they
all should of thought about changes in the future lee is only 31 now, and i feel we should have more. (this causes lots of heated
discussions). Lee mum is now 71 and living in a 3 bed home whilst we are stuck at my mums. Ok so its pretty big here but
we shouldn't be here.
Anyway my parents want to more so now comes the problem:
we need to move Renting a 3 bed here is £750 month plus bills
Morgage he is paying is £420 month
plus we have huges outgoings as we have debt since this began.
now really in my opinion we should tell his mum we cannot do this anymore as we want to sort our lifes out before
were to old. If he didnt have the morgage we could easily get our own and live happy.
All i get is i can't chuck her out etc etc. and like i said massive arguments.
so un-happy right now because really besides this were a perfect family lee earns a decent wage, we have
beautiful little girl but this is truly testing us. lee earns £2600 a month -
WHAT WOULD YOU DO? GET IT SORTED OR ALLOW HIS MUM TO ENJOY HER LIFE WITHOUT PAYING
A DIME. (by the way shes a very active healthy 71 year old)

Werdnal

If his mum has the 3 bed on her own, would moving in with her not be an option for you?

chazall

No not really few reasons;

it's in another area about 20mins maybe slightly more away from were we live. lees fuel bill is already £200 a month.
wouldnt choose to live there either.
and also there just would be enough room we have dog cat and whole house of furniture costing us thousands.

Put it this way she (up until weme & lee met) charged lee £230 month rent on top of that agreement lol. so no way.

plus i think lee works extremly hard we had my little girl because we were in a position to give her a great life, i think why shouldn't we give her a home thats not co-habiting with grandma.

marliepanda

I would say it is up to your partner. He is the one who made the deal with his parents (and who will benefit when he eventually owns a house worth more than his investment?) The deal was he would own when they died? Mums still alive...

If it is causing arguments I can only assume he does not agree with you, and you seem to want to sell the mothers house and buy your own? I can certainly see why this would cause a conflict of interest with your partner and his mother. Would you want to sell your mothers house and force her into a new home if the situation were reversed?

chazall

It probely sounds harsh. But this is my point

we are either going to be homeless ourselves are absolutely broke from renting it will put a hold on our life's completly.

and my mum would not of done this in the first place she said and if she did, she would see us stuggling now and say that its obviously un fair. all my family are outraged that we need to move but can't yet she is in a 3 bed on her own.

they also say thats its affecting them because we could afford to pay them more rent if it wasnt for the morgage.

lastly i would rather walk away now with no profit and start a fresh i dont even care about the equity even though lee has already contributed £12,000 so far.

they originally paid £15,000 for house so in my opinion why on earth was it not fully paid. but they managed a 8-week trip to canada etc. also when lees dad died he didnt have cover for house but had £20,000 life insurance and lees mum took it now i think she could of at least helped contribute. as it goes lee pays £40 month to cover the house but lee's mum is not covered everythink is in her favour.

I think personally our little girl Lois is way more important than his mum. SORRY TO RANT YOUR RIGHT ITS CAUSING SO MUCH STRESS X

ViolaLass

Your fiance has a mortgage on his parents' house? Does he therefore co-own it? Why did he pay his mother rent when living there then? Who got the £70k when he got the mortgage? His parents? So he lent them money and they charged him rent?

justjohn

Sell it, or move in to it.

Move the mum into rented depending on the practicalities

Werdnal

ViolaLass wrote: »

Your fiance has a mortgage on his parents' house? Does he therefore co-own it? Why did he pay his mother rent when living there then? Who got the £70k when he got the mortgage? His parents? So he lent them money and they charged him rent?

The way I read the OP is:

HE bought his parents a house as they could not afford/get a mortgage.

HE and OP live in a house belonging to OP's parents, and therefore pay OP's parents a nominal rent.

Now HE and OP want to buy their own place, but HE having already got a mortgage on his parents house, cannot get a 2nd one to buy again.




OP is there any way to adapt the property your MIL lives in - convert garage, add extension etc, to create a "granny flat" type arrangement. It would add value to the property in the long term, and allow MIL to stay there (free babysitting etc!), yet still allow you to make the most of the house you already own. It doesn't need to be huge - my auntie converted and extended their garage for my late gran to move into.

I know you say its further away than you would like from your partners work etc, but sometimes you need to speculate to accumulate! Short term pain for long term gain and all that ...

seven-day-weekend

Can you afford a mortgage on a one-bedroom flat, then mum can live in that and the family can live in, or sell, the three-bedroom.

pmlindyloo

Forgive me for saying so but we are, I think, a little confused.

I am sure we can give possible options if we knew exactly what the financial side was, so would you mind answering a few questions to make it clear?

Whose name is the house in? ( Joint names? Tenants in common?)

How much mortgage is on the house?
In whose name? (Joint names or just your OH's name?)

How much money did your OH's parent's put into the house?

Does your OH's mother pay your OH any rent or money towards the mortgage?

I think if we knew the answers to the questions we could help more.

You could press 'quote' to this post and put your answers by the side of each question.

Whatever suggestions we might come up with, the way forward depends very much on the answers to those questions.

Sorry.

JimmyTheWig

Sounds like Lee's parents have been selfish and bad with money.
If they bought the place for £14k and then Lee mortgaged it for £70k, presumably that's a lot of equity that the parents have spent between the two things happening. Plus the £20k life insurance that's been spent.

But ultimately, Lee agreed to this plan. He agreed to it knowing that they had spent all this equity. He agreed to it knowing that he wouldn't be able to get a second mortgage for many, many years. He agreed to it, presumably, because he cares. I presume that he wasn't pressured into it.

So Lee and his mum need to come to some arrangement. He's said she can live there forever if she wants to so he either needs to stick with that or come up with another plan that she's happy with. Obviously him telling her that he's made a mistake and should never have entered into this plan in the first place and is terribly sorry and feels really guilty that his new family is suffering because of his mistake might help.

Are you saying that there's now £82k equity in the place? Could his mum buy somewhere outright for that sort of money?