Inheriting share of shared ownership property

wolverine_87

Hi there,

I am sorry to ask a question with a first post if it is considered rude!

However, this is a somewhat unique situation and it is very difficult to find any information on the internet, so some guidance would be very much appreciated.

Sadly last year my mother passed away. She owned 25% of a house as part of a shared ownership scheme. This has now been left to myself and my sibling, and we have just finalized the land registry forms to move this into our names, as 12.5% shareholders.
We have agreed that, as she wants to move into the house, that she is going to 'buy out' my share with a mortgage. Essentially taking out a mortgage for the 12.5% and becoming the 25% shareholder, as my mother was.

My question is can she now go ahead and apply for the mortgage, as we have agreed a fee, or do we need to wait for any paperwork to come through? Is there anything that we may have overlooked.

Secondly, and I pray that this does not happen for fear of family fall-outs, but if she is unable to secure a mortgage and refuses to sell the property, where would we stand legally? Can I be forced into keeping a share in a house that I do not want, or can a sale be forced the executor (in this case, a solicitor).

Many thanks for your help, I hope it's not too much of a tricky one!

princeofpounds

Re forcing a sale... Depends on the will. Probably not as it was likely left to you as a share in property, rather than proceeds of a share of property.

But in theory you could inherit then apply to a court for an order for sale. Would cost some money and hassle. Of course if you co-own it then you have every right to co-inhabit it too, she couldn't lock you out. So it's likely to end up in discussion.

wolverine_87

To answer some points, firstly there was no will. So the 25% has passed down to us as her children. We have signed the forms and paid the land registry fee so both our names should now be on the least as far as I understand it.

Second point, I have no interest in co-habiting it. I currently rent a house in a different part of the country. My fear as a young parent is firstly becoming tied up in a property that I do not wish to be in, and secondly being unable to leave any inheritance to my own children. My wife and I would prefer to use the money generated from a sale of the share (to my sibling or housing association) as a deposit for our own house so we can get onto the housing ladder ourselves and not have to rent anymore.

Paul_the_Painter

I would be inclined to contact the social landlord (council/housing association) to ask them for a recommendation of a local solicitor who deals with these properties on a regular basis. The leases can be complex. Essentially it will all happen at the same time, but your name will be removed from the property the mortgage will be advanced, and you'll get your cash. Of she wants to buy more of the property it would make sense to do this at the same time, although think carefully as it is not always wise to buy more.