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Help with my half of a house !!!!!
Comments
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I don't think your lack of occupation directly affects the options that you outline.
Your aunty doesn't seem to be in the position to buy you out if she can't manage the full cost of the mortgage and has run up arrears. Or do you think she's done this to try and apply pressure on you to start repaying it?
Perhaps she didn't proceed with buying you out because she hoped you would continue to pay while she remained in the house, she got a bit too comfortable about the previous arrangement and this made her lazy? Or she realised that she could not get a mortgage in her sole name and didn't communicate this to you. Is she in employment or on benefits, if so which benefits? how much is the mortgage and how much does she earn? do you know if she has spoken to a lender about buying you out?
Are you in the position to buy out your aunty, pay the arrears and take over the mortgage in your sole name - have you spoken to a lender about this? What equity do you think your aunty would expect - 50% of it after legal expenses, plus the share of the mortgage that you haven't paid over the last 2/3 years?
Joint tenants are jointly and severally liable for mortgage arrears - they aren't your Aunt's debts from a Lenders perspective, the arrangements that you come to on a personal level are nothing to do with them - the debt is owed by either or both of you, full stop.
In the event of repossession, the lender may end up selling the property on the cheap via auction and will give you the balance, less their considerable fees and the arrears - you may find this erodes a lot or all of the equity, possibly even leading to a debt that you must pay.
See the Shelter website which has a section on struggling home ownership, including how to deal with arrears and prevent repossession, the various mortgage rescue schemes that the government run.
See their section on relationship breakdowns - this will tell you your rights, responsibilities and options. You can force a sale by court order but this may be expensive and long-drawn out. See a solictor.
Contact the Lender and see what point they are in the repossession process, how much the arrears are. You need to communicate directly with them as if they don't know that you live elsewhere, their letters about your debt and potential repossession of your property, will go to your gran's place.
Thanks .
Personally I think she has a drug problem because the mortgage has gone down to base rate it originally was about 600 a month and now it's only £220 a month the loan is £230 a month.
I know she's not in a position to buy me out and same with me now as I have nearly 5 kids ! And pay rent elsewhere .
I think they thought they basically could live there forever rent free if you get what I mean and I wasn't having that .
Also she works full time and my nan looks after her son
Thanks0 -
Is it an interest only mortgage or is a repayment mortgage? If it's an interest only mortgage, is there a separate investment vehicle to pay off the capital at the end of the mortgage term? How long is the mortgage term - how much left on it?
Have I got this right - she works full time (so even on National Minimum Wages) she must earn at least £800 a month, plus the state pension of your nan and perhaps sickness/disability benefits of her son more than doubling the income into the house and she can't manage to pay £230 a month for the full mortgage?!
Does your nan know the property is in danger of repossession - that her daughter has effectively squandered her house up her nose or in her veins? Do you think your aunty is lying about the arrears ?(obviously you can check yourself with the lender).
The only options I can see (since neither your aunty or you have the funds to buy each other out) are
1. Force the sale via the courts and move in yourself or someone else, let your Gran stay there as you don't want to make her homeless. This may be expensive, time consuming and you might not get the order because there are vulnerable people in the house.
2. Pay your share of the mortgage (is that half of £230 per month - £115 per month that you need to pay?). If you can't afford this, then strike it out as an option.
3. Let it be repossessed and be mindful that you may not see much of the equity or may end up with a debt still owed to the lender.
4. Hope that your aunty is lying about the arrears and is saying it is being repossessed to try and call your bluff so you start paying again. Contacting the lender will rule this in or out.0 -
Is it an interest only mortgage or is a repayment mortgage? If it's an interest only mortgage, is there a separate investment vehicle to pay off the capital at the end of the mortgage term? How long is the mortgage term - how much left on it?
Have I got this right - she works full time (so even on National Minimum Wages) she must earn at least £800 a month, plus the state pension of your nan and perhaps sickness/disability benefits of her son more than doubling the income into the house and she can't manage to pay £230 a month for the full mortgage?!
Does your nan know the property is in danger of repossession - that her daughter has effectively squandered her house up her nose or in her veins? Do you think your aunty is lying about the arrears ?(obviously you can check yourself with the lender).
To be honest I was and still am a bit clueless as it was all rush rush at the time and I was just 22 . But I know it was a interest only mortgage and think there was or is going to be a final
Payment in the future but I remember my auntie saying when we come out of the 5 years we will remortgage to a repayment.
The mortgage was for 110k and is now 113k caus of late payments ect.
She used to take home £1600 plus tips but I think now she takes about £1400 per month . I have never asked about my nan as she is very personal but I know she has a good pension from baa.
They were going to get the local council to buy the house back off us ( all behind my back ) but my nans pension stopped that I think.
My nan knows the house might get taken off her and she says she don't care but blames me as I stopped paying but don't want to admit her daughter is a coke head .
The house is Ian arrears along with the loan as I got called 10 times a day so I changed my number and you were right earlier I don't receive any letters as I don't live there And my nan don't give them to
Me or mention anything if we do talk , once in a blue moon0 -
...
I think they thought they basically could live there forever rent free if you get what I mean and I wasn't having that .
...
I think you mean that they were expecting you to subsidise their occupation when you couldn't move in, rather than living there rent free?
Well, your aunty is not a tenant, she's an owner, so there's no rent to pay as such...You never set up any type of formal agreement for her to pay you anything at the outset, or did you? So there's no any legal liability, as far as I can see.
And your nan wasn't ever supposed to pay rent because she presumably 'gifted' you both the property on the cheap?
Was this a property that she owned herself and transferred into both your names to avoid it being used to pay any future care home fees? Or was she a council tenant and you helped her buy it under the right to buy? Presumably your aunt didn't earn enough to buy it outright and needed someone else in order to raise the mortgage?
Not sure how she could pay anything other than peppercorn rent from her state pension? As she previously owned the property she now occupies, she would not be able to get housing benefit for 5 years. And as she lives with a close relative - her daughter - she can still not get housing benefit even when that 5 years expires - HB is not payable when a landlord and close relative who is a tenant live together in the same property.0 -
To be honest I was and still am a bit clueless as it was all rush rush at the time and I was just 22 . But I know it was a interest only mortgage and think there was or is going to be a final
Payment in the future but I remember my auntie saying when we come out of the 5 years we will remortgage to a repayment.
The mortgage was for 110k and is now 113k caus of late payments ect.
Get your head out of the sand - you have deliberately ignored calls from the lender but you are responsible as a joint owner, switching off the phone doesn't stop your liability for the arrears. You need the paperwork to know where you stand, then you can sort out some debt management, legal or repossession strategy.
You need to find out how the mortgage arrears will affect you - credit rating, how/if the lender can enforce payment from you and so on.
By doing nothing, you are making a decision, or accepting the risk, that the property will be repossessed and may lead to you being chased for debts - is this something that you are happy about if this happens (for example, you'd rather the property be repossessed than start paying towards it again?).
How long is the mortgage term? Because, to be honest, if it's not repossessed in the near future, then it will be by the end of the mortgage term if it ambles along on an 'interest only' basis and you can't come up with the capital sum that is due then. When it's paid on an interest only basis, it merely treads water, it never gets paid down. On x date, £113k must be fully redeemed. What is x date (the mortgage redemption date?).
They were going to get the local council to buy the house back off us ( all behind my back ) but my nans pension stopped that I think.
It looks like they looked into one of the mortgage (mortgage rescue scheme) where a social housing landlord buys the property when there is a vulnerable person in the house and then gives them a tenancy agreement so they can remain there on a rental basis.
While they may have approached the council without notifying you, they could not have proceeded because anything like a sale, remortgage, loan raised against the house, requires the written consent of both owners. (To other posters, am I right that a joint tenant can't get a loan secured against the property without the other one knowing or am I wrong?).
EDIT - additional info and queries below have been posted.
Is it possible your aunt is playing a game of brinksmanship - that she has perhaps put aside money to pay the arrears, is fully aware of the repossession process and its timing, and has deliberately witheld mortgage payments and wracked up mortgage arrears, simply to apply pressure on you to pay up as per your original agreement? Is it possible that her strategy is that she makes it appear the property is being repossessed, that she has the means to pay and can stop the lender from taking it off her by paying them x sum by x date, just to get at you?
Or do you really believe she's snorted all of her income up her nose so that she can't even spend a fraction of her wages on a small mortgage?
And your nan is really, really mellow and rather than pay a small sum out of her occupational and state pension, she will withold from contributing and see her family home taken from her, just to punish you?!!
I just don't understand the family dynamics when there is potentially a household income of £2000 - £3000 per month and between the three of them, they can't find £230 per month for the mortgage!!?0 -
I think you mean that they were expecting you to subsidise their occupation when you couldn't move in, rather than living there rent free?
Well, your aunty is not a tenant, she's an owner, so there's no rent to pay as such...You never set up any type of formal agreement for her to pay you anything at the outset, or did you? So there's no any legal liability, as far as I can see.
And your nan wasn't ever supposed to pay rent because she presumably 'gifted' you both the property on the cheap?
Was this a property that she owned herself and transferred into both your names to avoid it being used to pay any future care home fees? Or was she a council tenant and you helped her buy it under the right to buy? Presumably your aunt didn't earn enough to buy it outright and needed someone else in order to raise the mortgage?
Not sure how she could pay anything other than peppercorn rent from her state pension? As she previously owned the property she now occupies, she would not be able to get housing benefit for 5 years. And as she lives with a close relative - her daughter - she can still not get housing benefit even when that 5 years expires - HB is not payable when a landlord and close relative who is a tenant live together in the same property.
No auntie payed less than me In mortgage as I paid more for my half but that was a mutual setup.
I was told by the solicitor at the time that nan was not allowed to stay in the house after the sale or during as it was illegal which she did , she originally Owned the house and still had £10k left on her mortgage so we bought it off her them she paid her 10k ,
Nan does not claim any benefits apart from her state pensio
And or private pension.0 -
Get your head out of the sand - you have deliberately ignored calls from the lender but you are responsible as a joint owner, switching off the phone doesn't stop your liability for the arrears. You need the paperwork to know where you stand, then you can sort out some debt management or repossession strategy.
How long is the mortgage term? Because, to be honest, if it's not repossessed in the near future, then it will be by the end of the mortgage term if it ambles along on an 'interest only' basis and you can't come up with the capital sum that is due then. When it's paid on an interest only basis, it merely treads water, it never gets paid down. On x date, £113k must be fully redeemed. What is x date (the mortgage redemption date?).
It looks like they looked into one of the mortgage (mortgage rescue scheme) where a social housing landlord buys the property when there is a vulnerable person in the house and then gives them a tenancy agreement so they can remain there on a rental basis.
While they may have approached the council without notifying you, they could not have proceeded because anything like a sale, remortgage, loan raised against the house, requires the written consent of both owners. (To other posters, am I right that a joint tenant can't get a loan secured against the property without the other one knowing or am I wrong?).
I know but I'm stuck in a pickle as I can't afford the mortgage unless I lived in the house with my family.
It was originally for 25 years.
O I see they were trying to be nice to me and kept asking me to sign
Something to take my name off the mortgage but that never happened .0 -
is the money you have paid in written in contract that it was 58% yours, 42% your aunties? As when it is sold (which it sounds like it will be sooner rather than later - especially if it is 2 years in arrears) any money left over needs to be distributed like that. It doesn't sound too good though to be honest. You might be able to bide your time and try and sell it lower on the open market if you explain to the lender, but unless the mortgage is bought upto date they will keep trying to get their money back:T:T :beer: :beer::beer::beer: to the lil one
:beer::beer::beer:0 -
Get your head out of the sand - you have deliberately ignored calls from the lender but you are responsible as a joint owner, switching off the phone doesn't stop your liability for the arrears. You need the paperwork to know where you stand, then you can sort out some debt management, legal or repossession strategy.
You need to find out how the mortgage arrears will affect you - credit rating, how/if the lender can enforce payment from you and so on.
By doing nothing, you are making a decision, or accepting the risk, that the property will be repossessed and may lead to you being chased for debts - is this something that you are happy about if this happens (for example, you'd rather the property be repossessed than start paying towards it again?).
How long is the mortgage term? Because, to be honest, if it's not repossessed in the near future, then it will be by the end of the mortgage term if it ambles along on an 'interest only' basis and you can't come up with the capital sum that is due then. When it's paid on an interest only basis, it merely treads water, it never gets paid down. On x date, £113k must be fully redeemed. What is x date (the mortgage redemption date?).
It looks like they looked into one of the mortgage (mortgage rescue scheme) where a social housing landlord buys the property when there is a vulnerable person in the house and then gives them a tenancy agreement so they can remain there on a rental basis.
While they may have approached the council without notifying you, they could not have proceeded because anything like a sale, remortgage, loan raised against the house, requires the written consent of both owners. (To other posters, am I right that a joint tenant can't get a loan secured against the property without the other one knowing or am I wrong?).
EDIT - additional info and queries below have been posted.
Is it possible your aunt is playing a game of brinksmanship - that she has perhaps put aside money to pay the arrears, is fully aware of the repossession process and its timing, and has deliberately witheld mortgage payments and wracked up mortgage arrears, simply to apply pressure on you to pay up as per your original agreement? Is it possible that her strategy is that she makes it appear the property is being repossessed, that she has the means to pay and can stop the lender from taking it off her by paying them x sum by x date, just to get at you?
Or do you really believe she's snorted all of her income up her nose so that she can't even spend a fraction of her wages on a small mortgage?
And your nan is really, really mellow and rather than pay a small sum out of her occupational and state pension, she will withold from contributing and see her family home taken from her, just to punish you?!!
I just don't understand the family dynamics when there is potentially a household income of £2000 - £3000 per month and between the three of them, they can't find £230 per month for the mortgage!!?
That could be a very good possibility , she has been given £50k at least just after the sale from my nan .
But I'm not easily scared to be honest I have got to the point where
I would rather they took the house and sold cheaper just to get my name off it completely .
I just can't understand why she or they would let it get that bad that the might repossess the house and her not selling it and walking away with at least £40k0 -
No auntie payed less than me In mortgage as I paid more for my half but that was a mutual setup.
I was told by the solicitor at the time that nan was not allowed to stay in the house after the sale or during as it was illegal which she did , she originally Owned the house and still had £10k left on her mortgage so we bought it off her them she paid her 10k ,
Nan does not claim any benefits apart from her state pensio
And or private pension.
I don't really understand this non-occupational clause but then I'm not familiar with the right to buy process.
Have I got this clear ?
- you paid 70k for the property via a joint mortgage
- your aunty paid 40k for the property via a joint mortgage
You think the property is worth around 190k to 220k (equity of £80-100k)
You then jointly took out a loan secured against the house for 19k - how much of this is still owing?
Your aunty was given 70k by your nan and has seemingly snorted it up her nose rather than pay down the mortgage?
The mortgage has 20 years left to run but is an interest only mortgage so because there is no repayment element, and you took out a loan to refurbish it and there are arrears, after 5 years, you and your Aunty actually now owe more than the original mortgage!?
The mortgage is £220 a month, the loan is £230, and despite a household income of at least £2000, but more likely greater than this, the 3 adults can't rustle up £550 per month between them?!0
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