Tenants in Common - remortgage without consent of other owner?

Thrugelmir

BFree wrote: »

The interest only status of the mortgage was only intended to be temporary whilst I was out of work, we qualified at that time for MIR and the other owner claimed this in their own name. Now that I am working again, I am in position to start repayments. However as the interest only mortgage has gone on too long, and none of the capital has been paid off, financially it makes more sense to now start paying it as a repayment mortgage. It will benefit both of us in terms of equity when the house is sold.

We started out as joint tenants but in the interim the other owner had started legal proceedings against me to claim more than the 50/50 split in the hope that as the MIR was being paid through them whilst I was out of work, that would entitle them to more than 50%. The other owner has only just recently severed the joint tenancy, thus converting to tenants in common. So naturally, the longer the mortgage continues to be paid as interest only through them, the more equity they will attempt to claim. Which is why they won't agree to changing the mortgage type.
I want, am able, willing and qualify (whereas they do not) for a repayment mortgage, and financially it benefits both of us. It really is just a legal ploy by the other owner despite the fact that essentially, they would gain more by being fair and agreeing to change the mortgage type.

Sell the property to avoid further grief and hassle.

BFree

getmore4less wrote: »

Claiming equity when there is none as only interest is being paid will be difficult and the calculations will result in a small amount of equity.

Put up some numbers I can do the calculations.

There is actually some equity as capital loan remaining is approx £30,000 and now the property would sell for around the £70,000 mark - hence the greed for a larger claim of equity...despite the fact that still none of the capital will be paid off until it would be switched from interest only to a repayment mortgage.

The other owner can't see the woods for the trees I'm afraid, doesn't understand the financial reasoning, wants as much equity as they can get, and wants to win for power reasons.

Greed and power have overcome common sense and fairness.

BFree

Thrugelmir wrote: »

Sell the property to avoid further grief and hassle.

The other person does not want to sell, despite the fact that they put the property up for sale for a year and a half, with a legal onslaught of solicitors letters trying to force me to accept that they were somehow entitled to most of the equity, even despite the fact we were joint owners at that time and not tenants in common.

Then they took the house down as soon as there were was an offer, as they realised they couldn't get what they wanted.

So Im stuck, waiting for the time when the house prices will rise enough again for the other owner to get greedy again to start the legal battle all over again...

getmore4less

Going repayment will complicate even more.

Calculating the % ownership based on who has paid the mortgage will depend on the what was paid and when.

Who is living in the house and paying now.

BFree

getmore4less wrote: »

Going repayment will complicate even more.

Calculating the % ownership based on who has paid the mortgage will depend on the what was paid and when.

Who is living in the house and paying now.

Other person is living in property. interest only still being paid through MIR in their name (which is why they are clinging on to sticking with interest only mortgage and not willing to change to repayment. But Im ready to start paying now, but financially doesn't make sense to keep paying interest only when I can afford to pay repayment - daft to pay interest and none off the capital.

Been through all % ownership battle, it stood at 50/50 legally at the last exchange of legal correspondence whilst we were joint tenants, which is the reason the other party has only recently changed it to tenants in common. So now they are hoping that they can win more equity.

I will have to inform the MIR department that circumstances have changed, and that I am able to pay the mortgage now, then approach the lender and explain I want to change mortgage to repayment but that other party refuses to sign and see what happens. Either this or force a sale - so more legal fees for me and none for them as they are legal aided to the hilt.

The other party has also illegally changed the locks to the property and not provided me with a set of keys.

BFree

Many thanks to all who have taken the time to comment on this scenario, a lot of you have helped.

I will provide an update in due course in the hope that it will help others in a similar predicament.

BFree (ah - maybe one day......)