Awkward break up, what to do with the house????

Flissyclaire

Hello everyone

I'm in desperate need of some advice. My sister split up with her boyfriend some 12 months ago.

They have a mortgage together on a property and she has an extra loan out for refurbishments.

Since then she has been paying her half of the mortgage, but not living there.

He's now realised that they're not getting back together and has decided to move to Australia (for at least 12 months???). He's decided to rent the property to his mum but without contract and my sister isn't sure about this.

She's been told to take her name off the joint mortgage but I'm guessing you can't just do that.???

She wants out. He doesn't. And he can't buy her out.

What does she do?

All ideas will be appreciated, but be gentle I'm not that in to property law. What's the worst case scenario here?

Thank you all so much for your help.

HAMISH_MCTAVISH

Flissyclaire wrote: »

What's the worst case scenario here?
.

There are many.....

1. He goes to Australia, pockets the rent or tenant stops paying, mortgage goes into arrears, bank comes after your sister for full amount.

2. He goes to Australia, bank finds out it's let without permission, raises mortgage rate, things go pear shaped, he stops paying, bank comes after your sister for full amount.

3. Tenancy is accepted (grudgingly) by bank because it's an immediate family member (more chance than with a stranger anyway), things go well with payments, but a secure tenancy has been created thanks to no paperwork and it's virtually impossible to get the family member out in the future.

4. Somebody forgets to pay insurance, or forgets to declare tenant, house burns down, bank comes after your sister.

5. He's off in Australia, your sister has to deal with letting house, maintenance, repairs, new tenants, non-payment of rent, etc.

I'm usually all for letting houses and generally think it's a good investment.

I'd have no issue letting my house out, or arranging for a close family member to stay in it, while I went overseas for a few years.... It can be done, and done reasonably safely, if the circumstances are right.

But mostly die to the breakup, this one sounds like it has a lot of potential problems, and maybe not so much upside?

Is there a reason they can't sell up? Negative equity, etc?

Guest101

What Hamish said, and also your sister should say no and move there herself, save on rent and make sure the house is ok.

She's liable for the mortgage anyway, may aswell use it. Get a lodger in too if theres room

ValHaller

She has to make it clear to ex's mother that she does not accept her as a tenant and to the ex that he has no authority to grant a tenancy. And she needs proof that she has done this, because she may need to apply for a possession order if she wants to move back.

Complicated but she needs competent legal advice urgently on how to stop MiL taking up a tenancy.

Flissyclaire

Thank you all for getting back to me.

Those worst cases were what I had feared, and that's obviously what we're trying to avoid.

Best bet is for her to be in the house after he leaves I figure, that way she has more say in things, morally at least, but I guess legally as well.

The problem is that he is reluctant to allow that, I can't imagine he's advising the mortgage company of the tenancy or of his trip. So I presume that legal advice is the only way forward?

Thanks again for your time, any other help or ideas are always appreciated.
Cheers

RAS

Does he

a)have the first clue about the legal responsibilities of letting house (insurance, Gas certificates, deposit schemes)?

b) does he realise that without an HMRC certificate mum has to pay for the tax on the rental money to the HMRC?

Flissyclaire

Hi Ras

I very much doubt it. This is excellent information though, as we can use this to tempt him away from the idea of renting to his mum and allowing my sister to move back to the house (at the very least) while he is away. That way at least one of the owners is in the property and there aren't any legal problems with him going away???? Correct?

Then she's in a much stronger position when he comes back, and he'll hopefully agree to sell...... (once the pesky relationship staff has had some time to settle).

Sound half reasonable?

Thanks again.

Yorkie1

Flissyclaire wrote: »

Hi Ras

I very much doubt it. This is excellent information though, as we can use this to tempt him away from the idea of renting to his mum and allowing my sister to move back to the house (at the very least) while he is away. That way at least one of the owners is in the property and there aren't any legal problems with him going away???? Correct?

Then she's in a much stronger position when he comes back, and he'll hopefully agree to sell...... (once the pesky relationship staff has had some time to settle).

Sound half reasonable?

Thanks again.

She is a joint owner. She has every right legally to re-occupy the house and does not need his permission to do so.

However, a valid tenancy agreement would scupper that for the duration.

[Deleted User]

Flissyclaire wrote: »

Since then she has been paying her half of the mortgage, but not living there.

I totally agree with Yorkie's post if I understood it correctly.

Now it should be her turn to live there whilst HE pays the other half of the mortgage. What's good for the goose is good for the gander ... never as simple as that however, I realise ...

jennifernil

Yorkie1 wrote: »

She is a joint owner. She has every right legally to re-occupy the house and does not need his permission to do so.

However, a valid tenancy agreement would scupper that for the duration.

Just what I was about to say.