Advice on eviction

Rocky99

If we didn't have the kids me and my husband would be in there without a shadow of a doubt. I want the kids to be sheltered as much as possible from them. I can't quite believe they would send that letter on my sons birthday and not even acknowledge his birthday!!
I feel like I've lost all guilt feelings and is now pure anger and disbelief!!

One question we've just been discussing is : if that 'contract' is so legally binding to us that prevents us from selling or evicting them would it prevent the mortgage company evicting them?

I would like the 'contract' looked at for a second opinion.

Another problem we can foresee is: would we be punished ie taken to court for ....(unsure at to what) for allowing this whole transaction to happen and allowing my parents to reside there?

Thank you big Aunty I will look into those other sites

lighting_up_the_chalice

Rocky99 wrote: »

One question we've just been discussing is : if that 'contract' is so legally binding to us that prevents us from selling or evicting them would it prevent the mortgage company evicting them?

Short answer is "No". The lenders contract is with you, not your parents. It's possible that a repo may breach your contract with your parents, but that wouldn't prevent the lenders from taking possession. If they have granted permission to let, they may become the parents LL after repo, but that would be under the terms of the permission to let/mortgage.

Annisele

lighting_up_the_chalice wrote: »

Short answer is "No". The lenders contract is with you, not your parents. It's possible that a repo may breach your contract with your parents, but that wouldn't prevent the lenders from taking possession. If they have granted permission to let, they may become the parents LL after repo, but that would be under the terms of the permission to let/mortgage.

I think it might be more complicated than that. Since the parents were there first, and apparently sold the property on condition they could live there for the rest of their lives, it's possible that the parents right to live there comes before the lender's right to take possession. (I say "might" be more complicated, because I'm not sure. I think you're likely to need more legal advice than you've had so far to sort this out).

As to you being punished/taken to court - I think it's highly possible this whole mess will end up in a civil court, but that would be to work out the rights and obligations of everybody involved. So, it'd be things like who gets to have the property (you/parents/lender) and who has to pay money to whom. That's very different to a criminal court.

What did the solicitor suggest as a next step? It's possible mediation might be a way forward, if your parents understand that things can't go on as they are.

HelenRachel

This is a terrible situation that you've been put in. You've gone with the best of intentions and unfortunately its back fired. Best to just chalk that up to experience.

I think you need to have a fairly frank discussion with you parents (I'm sure you've tried this already), perhaps with a mediator, and point out that either way they are going to end up homeless. They can either do it with money in their pocket by letting you sell the house or they can be evicted in a few years time by your mortgage provider. If they don't see sense then unfortunately it looks like you're going to have to go through this long drawn out process. I don't think you can end up being prosecuted for this as it wouldn't be in the public's best interest to prosecute you in a criminal court. I'd also get a second opinion on this 'live there for life' piece of paper. Have you actually got a copy of it?

If it were me I would move in with them, eat all of their food, refuse to contribute to any of the bills and generally make my self a nuance. I can understand you not wanting to move your children in. Would it be possible to rent out either of the two spare rooms in the house? You haven't said that they would be exclusive tenants, lots of people would be happy enough to put them in their place. I'm not sure where you would stand legally on this. Another option which I'm not sure if you may have considered but if their garden is quite big could you sell part of the garden to a developer? or sell it with planning permission? Or sell it to the neighbours? We've been looking at houses and some of the ones we've looked at have clearly done this somewhere along the line. Depending on where they live could you possible look at schemes such as renting out their drive to commuters or even renting out storage space in the garage/attic/either spare room? You could lock these areas so that your parents couldn't inter fear with the items. Is it possible/viable to divide the house into flats? Just trying to think of a few suggestions to try and get the house making a bit of money and working for you a bit so it can ease the burden a bit. Also if your parents could work with you to try and get any benefits that they are entitled to to put towards the rent?

Somerset

Rocky99 wrote: »

. we offered to buy my parents house, give them £100000 to clear debt and we take £50000 out to pay all fees and use the rest for a deposit on own house mortgage.

I know this thread is on it's fourth page but I don't understand the numbers.


What was the house worth when you bought it ?
How much was your parent's mortgage which I assume was 'paid off' with your mortgage advance ?
They got 100K on top of their now cleared mortgage ?
You kept 50K ?


So, without number's, you got 50K, the house plus the associated new mortgage ?? I'm just trying to work this out in my head - the house was effectively sold at an undervalue of 150K ie you got free equity of 150K but the problem is you immediately 'gifted' 100K of this to your parent's.


I can see the problem, not a good deal. And it will be messy legally. It's not uncommon for people to sell at undervalue (particularly family) with the proviso a life-long free tenancy exists. But there was no such contract. Equally if the intention was for rent to be paid, there would be a contract, but there isn't (yes, I read there was a later one for HB but you'd expect all contract's/agreements relating to the house sale/on-going tenancy to be part of the same 'package'). The 100K was a gift, it wasn't part of the sale.


So no clear contractual evidence either way of what was agreed.

poppysarah

Default.

Your kids have no grandparents already and will be better off with parents who no longer have the stress of this to deal with.

Yes it'll damage your credit rating but you can't afford to buy now.

Get your names down on the housing lists and push for that. You can get long term secure renting. Speak to the council now - if you've moved 7 times in a year then that needs to stop.

Sod the parents.
Don't worry about the technicalities of who can throw them out. Stop paying the mortgage and its not your problem.

If you want to be nice go and tell them you're stopping paying the mortgage.
But I wouldn't waste my breath with them.

BigAunty

lighting_up_the_chalice wrote: »

It may concentrate their minds.... and wasting estate agents time is hardly a concern for the OP (or anyone else, for that matter!!).

The letter about defaulting on the mortgage did not concentrate their minds,nor did the repeated requests for rent and discussion about the hardship the OP is enduring to fund their lifestyle - her mother has taunted her.

Fact is the sales process could be scuppered by the OPs parents pulling out the rabbit of that note about free rent for life.

BigAunty

Rocky99 wrote: »

One question we've just been discussing is : if that 'contract' is so legally binding to us that prevents us from selling or evicting them would it prevent the mortgage company evicting them?

Don't know for certain but I would expect that the mortgage companies contract with you may trump it. Your rent free contract with your parents has nothing to do with the lender - they didn't sign it....

If you look at the Shelter website, there are two different processes that a mortgage company has to follow if a repossession means there are tenants that live in the property (complicated by the fact that your parents aren't tenants, of course). If the landlord does not have permission to let the property (and I think this applies to you as you have a conventional residential mortgage) then it is easier for the lender to evict them.

Rocky99 wrote: »

Another problem we can foresee is: would we be punished ie taken to court for ....(unsure at to what) for allowing this whole transaction to happen and allowing my parents to reside there?

I suppose your parents could take you to court for compensation but could they afford the fees (legal aid is much harder to come by), would they win and if they win, how could they enforce it if you've next to no disposable income and no assets?

By the way, which is dated first - the tenancy contract they signed to claim HB or the note giving them the right to live rent free at your expense? If they did sign a tenancy agreement after the rent free note,then this could over-ride it but I expect this happened in a differentn order.

Another thing that you should do is calculate how much extra the mortgage will be when interest rates rise - do some modelling now as it is clear the rates will start to go up fairly soon. If its a struggle now,and you find it will be impossible a year or two down the line with interest rate rises, then perhaps that will motivate some of your decision making.

BigAunty

HelenRachel wrote: »

I think you need to have a fairly frank discussion with you parents (I'm sure you've tried this already), perhaps with a mediator, and point out that either way they are going to end up homeless.

By the sounds of it,the OPs mother has a strong personality (which is the politest way of putting it I can find). It is clear that her parents have dominated and exploited her. Their sense of entitlement is absolute. I really feel that they will only ever leave the property with the help of bailiffs,so strongly do they feel their right to a life of luxury at their daughter's expense. They see themselves as the victim here,and quite ironically enough,seem to think their daughter is financially !!!!les....

I have suggested before that if she goes down the repossession route,she should send a letter to her parents and keep a copy (perhaps drawn up by the solicitor) to outline that the repossession is taking place because she cannot pay the mortgage rather than not wanting to, asking them to consider paying rent or to allow the sale of the property and keep the equity. She should also enclose a financial summary of all she has contributed to the entire purchase of the property.

The_Negotiator

I think I must have read a different thread to everybody else. It seems that the parents needed to free up money to pay off debts so sold their house to their daughter significantly below market price (and their daughter managed to get a new car out of the transaction too using some of the mortgage money) on the proviso that they live there rent free for life.

Now the daughter doesn't like the deal and wants rent as well as the cheap house, i.e. to have her cake and eat it. Quite rightly the "evil" parents whilst sympathetic to their daughters problem won't pay rent because they dealt with that issue at the point of sale with a mutually signed contract that every party was fully aware of. They paid upfront.

But maybe I am just a pessimist?