Living with the mother in law

hueygeorge

Evening all
My boyfriend and I are in debt and therefore cannot get a mortgage at a reasonable rate. We have now lived with my boyfriend's mum for over a year (its been almost 3!!) which is a requirement of the 'right to buy' option. Anyway, we provisionally have a mortgage at 7.5% which isn't that bad considering. This mortgage is a joint one between boyfriend and his Mum. The only problem is that my boyfriend's mum is 73 - too be fair she is in good health but what would happen if she needed to go into a nursing home? Would we be forced to sell the house as she owns an equal share - although she will not be paying the mortgage? Just when I thought things where starting to get better, another problem arises!!! Any help greatly appreciated - thanks

Kaz2904

2 concerns. Why are you not going to be on the mortgage and will you be on the land registry deeds?
I don't think that you can be forced to sell the home when you don't own all of it but I forget how it works. She can gift £3000 a year per person so could gift a £3k share to you and your OH each year which would diminish her share and not cost her 3k.
How long is the mortgage over and how much debt are you in? Is it not feasible to repay your debts first whilst paying rent and then use your right to buy? You ought to be able to get a better mortgage then.

pania

Hiya there. I guess that this arrangement would be on a "tenants in common" basis, this means that if anything happens to your BF's mum, her half of the house will pass automatically to her estate not directly to BF.
The way to avoid this and i believe any possibility of the property being used towards nursing costs would be to ensure the mortgage is taken on Joint Tenancy basis which is the most common basis for a mortgage. where if anything happens to BF's mother it automatically crosses to your BF.

Is your credit rating that shocking you can't go onto the mortgage?
Have you investigated guarantor mortgages?
Was the broker you have dealt with completely independant and not tied to a panel?
There are many lenders out there that offer "sub-prime" mortgages, ie you've had issues with credit, at a rate lower than 7.5%. a very popular first time buyers lender (related to something hard and stoney in the top of the country!) has just released a range of sub prime products. See if you can get another opinion on your situation.

Also if you are to live in the property and pay toward it you will need to sign a "Consent to mortgage" form, this is basically saying that you acknowledge and allow a mortgage on the property you are living in and understand you have no claim over the property in the event of it's repossession or a break down in your relationship.
Ensure you are comfortable with this before you go ahead.
I hope this helps
P
xx

fatbelly

pania wrote: »

There are many lenders out there that offer "sub-prime" mortgages

And all should be avoided like the plague. Sorry - I represent people at Court repossession hearings and the difference in attitude between the major lenders and the 'sub-prime' boys is huge. 'Go for a major lender or stay in rented' would be my jaundiced advice.
Hueygeorge - you've been living with your boyfriend's mum for almost 3 years and you still have debt problems. Honestly, what do you think will happen if you have a whacking mortgage with a dodgy lender?

calleyw

I am assuming that your BF is on the tenancy agreement. If not he can't buy and that is why I assume you can't be on the mortgage or the deeds as you are not on the tenancy agreement. That I believe is the answer to Kaz2904 question.

I am not sure they can force a sell but they might roll up the money until it is sold as it is in joint names.

Your really need to get legal advice on this.

All the best.


Yours


Calley

pania

Hi Fatbelly,

Just picked up on your post. I was in NO way referring to lenders who charge whacking amounts of interest, however there are still a large number of lenders (Very well known, reputable lenders in the market place who have decided to add a sub prime product to their portfolio, A+L and northern rock for example) who are very very good.

I object that you may be implying my opinion would lead to someone being repossessed. As you know FSA regs state all processes must be in the bounds of affordability.
Your suggestion is that by my suggesting a sub prime lender this wouldn't be the case.
Yes there are cowboys out there who will offer a 200k mortgage to someone with 25K. This is not at all what i was suggesting.

All people should seek the advice of reputable brokers who wil provide them with accurate advice and point out the right road to go down.

I am proud to say that i AM one of these and would NEVER EVER lead someone down the path of repossession or carry out business that is below board.

A whacking mortgage with a dodgy lender????? Sorry Fatbelly you really have quite annoyed me. If you have any issue with what the opinion i place in my responses please feel free to PM me rather than undermining my integrity in the way you just have done.

OK point made. Sorry just a bit annoyed.