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

heretolearn_2

I don't understand why you allowed them to renovate before buying it. It's muddied the waters rather (don't know if legally, but obviously morally and from their and their families point of view). If they hadn't done this, they presumably would have had more money for deposit and could have got a mortgage. Then it's down to them to do what they want to the flat.

You are in a hard place here.

I would say that if you feel able to take a hard line, the renovations make no difference to the matter.

If I, as a tenant, choose to do improvements to my rented home at my expense and with agreement with the landlord, that's nice for the landlord. I can't expect to then remove any of the improvements or get paid for them - so if you do eventually have to evict them, you've gained in one way. Unless they are vindictive sods and smash it all up...which with £25k spent on your flat, they might well be tempted to do even if quite reasonable people normally. So evicting them is a risk - both with upsetting boyfriend's family and with damage to your flat.

I think you need to start charging them proper rent from now on. Don't accept the renovations in lieu of that - presumably you aren't expecting them to now pay more to buy the flat because of the improvements and they can't have it both ways. They still get to buy flat at original price. Therefore you are not benefiting from the renovations in any way, so doesn't count against rent. You are losing money by trying to help them.

Can you draw up a proper tenancy agreement for 6 months, with the option to buy at existing agreed price outlined in that if it happens within the six months? And thereafter the property will be revalued for sale and put back on the open market (with them as sitting tenants maybe). That should concentrate their minds on getting the mortgage.

You cannot be expected to subsidise these people forever.

itsanne

A_little_stressed!! wrote: »

I have received less than £1000 over 18months.

I never intended it to be long term, a month, maybe 2 while mortgage was sorted to help out a friends and a family member.

I haven't paid for any of the work being done. That I believe has been done on loans/finance/other family help!!

I don't understand how it has gone on so long, and I do not know what to do. Our Christmas will be rubbish as no money, our holiday early next year is looking impossible.

I have just tried to be a kind person, and help out, and I feel like I have been robbed, beaten & left at the side of the road :-(

The bit in bold complicates things. It may well give them some legal interest in the property - that is something you really need to find out about as a matter of urgency. You need proper legal advice.

LannieDuck

Hmm... I'd overlooked the £25k. It could make things a bit more complicated. But I still think you need to have a chat with them to find out their intentions and what they want to do.

RAS

Op

You need a lawyer and fast.

Your OH's family cause problems with your tenants so they move out.

Your OH's family then try to buy said property.

Your OH's family them want to move in before purchase, rent free?

Yes you have been shafted and you need to wise up fast.

FatVonD

Where do you live,OP? Would you consider moving back in (ie with them) then they would be lodgers and not tenants and thus easier to get rid of?

Could you add up what rent they owe you, deduct that from the £25k and tell them you're going to sell on the open market and will give them the difference (to put towards their existing deposit) to buy somewhere else (this is assuming they have added 25k of value to your property with the work.) That way they can't trash it or remove anytihng of value or they they won't get their money back.

FatVonD

And if they/your BF don't like the idea of you moving back in tell them you'll do a swap, you and BF will live in your flat and they can live in BF's. then see how keen he is on the idea of them living rent free.

Acc72

I agree that you need specific advice, although it may first be worthwhile to look on the House Buying, Selling and Renting pages on this site and other specific Landlord forums.

The only advice I have is that you need to be clear in your own mind what you want before you start speaking to anybody.

Also, as this situation is also complicated enough I would be wary of complicating things further by agreeing to off-set costs against rent or whatever.

You then need to discuss this with your boyfriend to determine if he is with you on this or not.

Unfortunately, I think that this will cause problems - at least between you and your boyfriends family and also possibly between you and your boyfriend (although the only alternative is to stay as you are, but this does not seem to be an option either).


Good luck.

Jobseeeker

OP, are you in Scotland or somewhere else in the UK as that will make a big difference to the squatters rights.

Why have these people been refused a mortgage? Do you think they could just be saying that now they realise they can live there rent/mortgage free?

Better_Days

OP, not exactly the same circumstances, but this thread from the house buying forum is well worth a read
https://forums.moneysavingexpert.com/discussion/3762265

A_little_stressed!!

Hi, thank you for all your comments, I'll answer what I can...

Property is in England.

The £25k of works I would approx at £15k to property (new kitchen, bathroom, carpets, fireplace etc) and £10k on 'stuff' which can be removed (curtains, blinds, appliances, sofas, beds, furniture etc)

I would say it would have took £5k to make it a nice home, everything was in full working order. Painted within 5yrs, carpeted within 8yrs, but 1 room was shabby carpet wise. New boiler installed <1yr.
But everything has been done to 'show home standard' no joke.

It could easily have been lived in, as a couples first home as it was, just like i have lived in shabby homes all my life as I have never had funds to splurge! I dream of a home all done up!
My bathroom has more plaster on show than paint (peeled off through damp) and what paint is there is mouldy! Shower on the blink, & 100 other temperamental things in my home!

The legal implications - eg what my rights are etc I will look for advice on House buying etc forum if it gets there, I was more after advice & opinions of the situation, whether I have given a reasonable amount of time & what I should say/do before anything 'official' needs to happen.

I've just had enough & need outside input!