Family member living in property, supposed to be buying it, 18m on, going nowhere?!

A_little_stressed!!

This is a rant, and I'd like some other peoples opinions on whether I should stay calm, or start getting extremely annoyed!

I have a flat, rented out happily for £100wk for over a yr, then an argument with neighbours (my OHs family) they gave notice & moved out, leaving me with no tenants. (June 2012)

My BIL then said he wanted to buy it, we agreed a price, and he said he wanted to renovate it before moving in. Which I was fine with as it was on the bad side of shabby.

Work began in Oct/Nov 12, him & wife move in in Jan 13.
£25k spent on complete remodelling!
Mortgage applied for, but nothing happening. No rent asked for no rent offered.
Mortgage falls through March/April time.

2nd mortgage declined May/June.

I'm nagging, but politely, in the end from June I ask for interest on mortgage to be covered. I'm expecting a baby & really can't afford to lose £300 month interest!!

Interest being paid monthly, mostly late & with reminders!

No sign of 3rd mortgage, still stuck with mortgage company assessing eligibility, really need more deposit to get accepted.

At what point do I say enough is enough? And what do I do?!

I am so tight with money, always narrowly avoiding going into OD each month, not having treats. Need work done on my house as leaking. Car is past deaths door.

& they are spending, spending, spending ALL the time! Fancy restaurants, 2 holidays this year, designer everything!!

OH wants me to stay calm, I have a buyer for a flat in a bad housing market. Their family, he's trying his hardest to sort mortgage! OH has leant me £5k this year to bail me out of debt.
This is causing a lot arguments between us as I have had enough of being broke, and enough of him not letting me give an ultimatum!

Just to be clear flat is completely mine, in my name, not me & OH & I pay mortgage completely myself.

NotSuchASmugMarriedNow

i'm trying to get a picture of the family dynamics here. You say he is your BIL - do you mean he is your boyfriends brother? Because your boyfriends brother isn't actually an In-law, he's just your boyfriends brother.

Your OH doesn't want you to say anything because what was once yours, has now been taken by a member of his family. That's why he has no intention of saying anything. He wants it to stay that way.

RAS

Where do you live, roughly, so people can advise on the situation better.

Since you have tenants do you have permission to let from your mortgage provider? Or any sort of landlord's insurance? Or a gas safety certficate?

Have you told HMRC?

~Beanie~

They are taking the p*ss and I would already be extremely annoyed.

They are living in your house, rent free and mortgage free, no wonder they can afford fancy restaurants and 2 holidays!!

I would give them a time limit to either cough up the money and buy it or start paying rent. If they haven't done either by the deadline, get them out and get it up for sale.

A_little_stressed!!

NotSuchASmugMarriedNow wrote: »

i'm trying to get a picture of the family dynamics here. You say he is your BIL - do you mean he is your boyfriends brother? Because your boyfriends brother isn't actually an In-law, he's just your boyfriends brother.

Your OH doesn't want you to say anything because what was once yours, has now been taken by a member of his family. That's why he has no intention of saying anything. He wants it to stay that way.

BF's brother.

But BF is getting it in the neck daily, and is having to lend me money, and we are both going without because of it.

He 'doesn't want a family fall out' but we are having a 'family fall out right here!! :-(

A_little_stressed!!

RAS wrote: »

Where do you live, roughly, so people can advise on the situation better.

Since you have tenants do you have permission to let from your mortgage provider? Or any sort of landlord's insurance? Or a gas safety certficate?

Have you told HMRC?

For previous tenants yes, now no, as not tenants, more squatters!!

Had no intention of it going on this long, and I'm losing money, not profiting!

LannieDuck

So, the second mortgage has fallen through. I think this is a good time to have a proper conversation with them to see what they want to do. If they want to continue living in the property whilst they attempt to purchase it, they need to start paying rent at £100/wk, and you'll need them to sign a proper contract as landlord/tenants. Alternatively they can move out and you can rent to someone else. They can of course continue trying to obtain a mortgage to buy it if they wish, but if they go down this route I would advise you putting it on the market to see what other interest there is at the same time (it doesn't sound as if they're going to be in a position to buy any time soon).

It sounds as if yours and OH's finances are separate (if he's 'lending' you money). You mustn't put yourself into debt to finance his family. If he wants to help out financially and keep things amicable between everyone, perhaps he could help his brother out with some money to allow him to put a better deposit down.

You've been kind and generous with the time you've given to let them sort things out. Time to put your business hat on and get this sorted. It's not family, it's business.

PasturesNew

A_little_stressed!! wrote: »

...not tenants, more squatters!!

They're tenants; they paid rent, you took it.
They've got tenants' rights now.

And they weren't squatters as you'd invited them to live in the flat.

TeamLowe

who's paid for the £25k of works? my gut tells me that might muddy the waters a bit as they could claim it was in lieu of rent that they spent so much on your asset if they paid...

A_little_stressed!!

PasturesNew wrote: »

They're tenants; they paid rent, you took it.
They've got tenants' rights now.

And they weren't squatters as you'd invited them to live in the flat.

No they haven't paid rent, that's the point!

RAS

PasturesNew wrote: »

They're tenants; they paid rent, you took it.
They've got tenants' rights now.

And they weren't squatters as you'd invited them to live in the flat.

This is important because you have legal responsibilities to comply with and you will have to take the proper legal action (S21 notice etc) to get them to leave.

How much were the previous tenants paying per month?