Fallen out with dad

BigAunty

The Shelter website has some information on the ramification of repossession and how to avoid it.

Have you considered that you may find you owe money on the property and be pursued for this after its been sold at a ridiculously low price at auction, perhaps even negative equity, and the fees for the repossession and sale are added?

http://england.shelter.org.uk/get_advice/repossession/ordered_to_leave/sale_by_a_mortgage_lender

http://england.shelter.org.uk/get_advice/repossession/ordered_to_leave/paying_off_mortgage_debts

BigAunty

peter12345678910 wrote: »

I read this

landlordzone.co.uk/forums/showthread.php?49378-Birmingham-Midshires-threat-to-switch-from-interest-only-to-repayment

they are forcing people into repayment mortgages from interest only, now that I have rang them, they may do it to me too?:eek:

Unfortunately lots of buyers chose interest only mortgages and there's been a spike in arrears and repossessions because so many did not have an investment vehicle in place to pay off the capital and just assumed they would benefit from eternal property price inflation.

We see many posts on this forum from mature property owners panicking because they are reaching the end of their mortgage term, sometimes ones that have already been extended, and owe pretty much the same or more than their original mortgage decades before as they've remortgaged at some point.

I believe around 200,000 plus households are currently receiving Support for Mortgage Interest because they've lost their jobs through retirement, sickness, redundancy or disability and now the govt pays the mortgage interest element. Over half of these are receiving Pension Credit which means they've reached state retirement age and have not paid off their mortgage despite being in their 60s or so. On the benefits forum, I have come across some recipients that have been on SMI for 13 years - he boasted how he would be mortgage free at largely public expense because the small repayment part of the loan was being serviced by his other benefits.

In this 'austerity' age, the govt is now questioning why the public purse is subsidising home ownership for those who cannot pay it off through employment and stand little chance of getting a job. They even debated whether or not to scrap SMI and put a charge on their homes, turning it into a loan rather than a means tested benefit. I believe they are now going to make the time limits stricter for all recipients, not just those on JSA.

I think the preference is for home owners to get a mortgage protection policy rather than taxpayers facing the burden and for mortgage lenders to be more sensible with their lending and ban interest only mortgages to prevent end of mortgage term repossessions.

Kynthia

RAS wrote: »

If you have joint ownership, you should be ensuring your father has half the net rental income?

If you aren't married to the joint owner of a let property, you don't have to split the income and expenses according to ownership when it comes to tax. Check out the HMRC website for more info.

Pixie5740

I think selling the properties or buying your father out of his share (if you can) are probably your best options. That way you could get rid of him once and for all. I can't believe he has been so horrible to you and your wife It's maybe time to speak with a solicitor.

peter12345678910

So repossession is not an option. So it would be moving backwards. S_ I have to work out how to move forwards and take my hand of my face.

I have told my mortgage company to send me the details, as the person formally known as Dad handled that for me. So I would have to wait for that....:(

peter12345678910

I rang up Birmingham Midshires and they gave me the details:

Basically 3 years to pay £71,544.28

On 2.45 interest a month

As my Dad is quite old I have less time to pay it off, and it will end in 3 years - I thought I had 20 years or more to pay it off.

They said they cannot give any advice even though I told them I just have 5,000 in savings, and I have to ask a broker for advice. So here I am for advice.

So if I sell the property which I have very little idea about I still need my dad's permission.

I cannot see any options, but if he made the mortgage knowing that I would not be able to pay 71,000 in 10 years, now 3 years. I do not know why he did not ever warn me about it.

If I had 20 years I could invest £200 a month in a Virgin account with 3% interest and have a slightly below reasonable chance to reach it.

I do not know what to do?

Pixie5740

I think you should speak to a solicitor. If both you and the person formerly known as father jointly own the property and have a joint mortgage then it's highly likely you will need his permission to remortgage or sell or buy out his share.

AdrianC

peter12345678910 wrote: »

I rang up Birmingham Midshires and they gave me the details:

Basically 3 years to pay £71,544.28

On 2.45 interest a month

As my Dad is quite old I have less time to pay it off, and it will end in 3 years - I thought I had 20 years or more to pay it off.

They said they cannot give any advice even though I told them I just have 5,000 in savings, and I have to ask a broker for advice. So here I am for advice.

So if I sell the property which I have very little idea about I still need my dad's permission.

I cannot see any options, but if he made the mortgage knowing that I would not be able to pay 71,000 in 10 years, now 3 years. I do not know why he did not ever warn me about it.

This mortgage, and the property it's for, is in joint names, yes? We can certainly presume it is, since the BS wouldn't have given you details otherwise.

If so, then "he" didn't take the mortgage out, you BOTH did. Did you not think it might be YOUR responsibility to be aware of what you were signing?

So - you and he jointly took out an interest-only mortgage, and have left it to within three years of maturity to even start thinking about a repayment vehicle. What did you think would happen? A timely lottery win?

You need to swallow your pride and pick that phone up. Arrange to meet with your father. Neutral, public surroundings - say, a coffee shop. That minimises the risk of it all getting shouty. STICK TO THE BUSINESS IN HAND, don't get diverted in personalities. Remember, you NEED to sort this out, and SOON. Is there a mutual friend who you both trust who could also be there?

peter12345678910

Everything is just going so fast, bills have not started popping up yet for the new house, I am doing over-time - I cannot think straight. The wife has said he will not sell, it may just get repossessed by default in the name of confusion.

All I can think of is Vodka home brew which is cheap.

RAS

Whose wife; yours or His?

And what the hell does that have to do with anything? Their opinion is of absolutely no consequence.

The only person whose decisions is relevent to your actions is your father (ex as he may be). Until you start to deal with him, you are wasting your time.

Have you been to a solicitor yet?

Have you explored the issue of forcing a sale?

And have you made sure that you are absolutely watertight in terms of LL regulations?