My Brother Can't Afford to Buy Me Out of My Share of the House

Voyager2002

A few minor points...

There is no need for any kind of written agreement with a lodger. The lodger has almost no rights, and as joint owner of the property you can tell him to move on. In the meantime, you should be receiving your share of whatever rent the lodger pays.

And there ought not to be any arrears on the mortgage: I am confident that the owners of the property could let it for more than enough to cover the mortgage payments.

xylophone

to discuss repaying the arrears and it's addressed to me as "The Personal Representative of Mrs xxxxx"

You said your brother was paying the mortgage? Do you need to arrange a meeting with the BS to discuss this whole matter?

AdrianC

The mortgage is going to be your biggest problem. The lender clearly don't know that probate's been completed, so are still - they think - dealing with the executors of your mother's estate. Except that the estate no longer exists.

Basically, when your mother died, her executor's responsibility was to wind everything up, transfer everything to those she left it to, and ensure all the loose ends were tidied away.That job's not been quite finished.

Once you tell the lender, they'll look at the new owners - you, your sister, your brother - and require you to borrow the money in your own right. You, clearly, don't want to. Your brother can't afford to. So he and your sister will need to work out if they can borrow jointly, and buy your share out. If not, the house will need to be sold, because the lender will be wanting to close your mother's mortgage down.

It's time for the three of you to get proper professional advice - sooner the better.

silvercar

It just seems unfair that he seems to have gained the house and pays only £200 a month for Mum's mortgage while I'm struggling.

to discuss repaying the arrears and it's addressed to me as "The Personal Representative of Mrs xxxxx"

Why are there arrears if your brother is paying the mortgage?

Mrs-D_2

There are arrears because when Mum died the bank said we had 3 months grace before continuing with the mortgage payments but they didn't say that we would then be in arrears owing those 3 months. None of us had experiences with mortgages so were naive and thought the bank was just being nice lol

silvercar

Mrs-D wrote: »

There are arrears because when Mum died the bank said we had 3 months grace before continuing with the mortgage payments but they didn't say that we would then be in arrears owing those 3 months. None of us had experiences with mortgages so were naive and thought the bank was just being nice lol

Check that they are not charging you arrears fees each month, some lenders have been known to add £50 a month arrears fees.

Also be very clear on how the mortgage is handled going forward, you don't want "mortgage arrears" to appear on your credit rating.

silvercar

Your brother has been living there since your mum died. If he had paid £250 a month to the mortgage instead of £200 he would have cleared those arrears in a year; not unreasonable given he was living in the house rent free at the time. Where is the lodger's rent money going?

Mrs-D_2

I do wonder that myself. My brother works full-time AND has the lodger's money so surely my brother would be raking it in only paying £200 for the mortgage and a few bills. But apparently not as he's done no work on the house and can't afford his own mortgage. He has definitely got off very lightly these past few years!

AdrianC

You NEED to sit down with both your siblings, and get the numbers on paper. Explain that you're very concerned about the future, that the mortgage/LR oversight needs addressing ASAP, and that you'd prefer to be getting your share out.

PasturesNew

How much is the mortgage for?

Probably your best bet is to move into the house with your brother (and his 'consent') on the basis that you are there for 1-2 years in order to help him get the house round to a decent standard and to sort out his credit issues etc ... with a view to him sorting it all out and buying your 1/3rd at the end of that time.

If the house is worth £115k and if the mortgage is (say) £67k, then that'd mean your 1/3rd would be worth about £16k. So you can use the time thinking about how best to use that £16k.

(I made up all the figures, for illustration).