House shared with Dad - won't sell

alice_kate_2

Morning!

About a year ago a friend of mine helped her Dad out with his house.

Her parents split, Dad wanted to keep the house but couldn’t afford it alone, so my friend stepped in and now has a 25% stake in the house (and pays towards the mortgage each month). The original plan was that they would do it up and sell it (it needs some work, kitchen, bathroom, new doors etc.).

Long story short, the dad is now refusing to sell. My friend has since met someone and is getting serious with them and so eventually they will want to buy their own place, so her being on the mortgage and having money tied up in her dads house is an issue.

He can’t afford to buy her out (hence why she had to step in in the first place) and is refusing to sell. What are her options? Does she have any?!

Thanks

csgohan4

Another thread on why money and friends/family shouldn't mix


Hope she gets it sorted

discat11

I doubt she can force him to sell up unless she has a legal contract for the share in the house.
Even then the mortgage company won't allow her to be removed in all probability unless the mortgage ceases (i.e. the house is sold).

Does she have a legal contract for the share of the house?

alice_kate_2

discat11 wrote: »

I doubt she can force him to sell up unless she has a legal contract for the share in the house.
Even then the mortgage company won't allow her to be removed in all probability unless the mortgage ceases (i.e. the house is sold).

Does she have a legal contract for the share of the house?

She has something drawn up which states her share is 25% - I'm not sure exactly what the document is though

csgohan4

alice_kate wrote: »

She has something drawn up which states her share is 25% - I'm not sure exactly what the document is though

That's probably tenants in common splitting the share of the house.


Either way she need legal advice


But don't cut your nose to spite your face and stop paying the payments as it will ruin your credit file. Sure the house will be repossessed but she won't get much back.

agrinnall

And to make things worse if she is able to go ahead with purchasing a new property without getting her money out of the first one she'll have to pay the additional stamp duty.

csgohan4

agrinnall wrote: »

And to make things worse if she is able to go ahead with purchasing a new property without getting her money out of the first one she'll have to pay the additional stamp duty.

Unless her partner can do it by himself

alice_kate_2

agrinnall wrote: »

And to make things worse if she is able to go ahead with purchasing a new property without getting her money out of the first one she'll have to pay the additional stamp duty.

I didn't even think of that!

What a nightmare.

She wanted Help to Buy but obviously can't do that now as she has a share in this house.

And the second mortgage will have an impact on affordability as she doesn't even live there and her dad doesn't pay her any rent or anything so she's obviously just subsidising his living costs.

AnotherJoe

You see this in the aftermath of divorce usually.
Legal action may be required.
I'd start with the threat, then move to a solicitors letter,and finally the real deal.

moneyistooshorttomention

I was thinking that divorce seems to be why this scenario often crops up on this sub-forum. That being one partner wants to sell and the other one doesnt.

I would imagine that much the same procedures apply as to a divorcing couple. From memory - I think the general idea was that the one who wants to sell can force a sale. Worth looking into....

TBagpuss

She needs tp speal to a solicitor. It's probable, (unless she was very careless with the agreement that was drawn up) that she could force a sale - it would be aan application under ToLaTA. But if she has to go to court it won't be a quick process, anf while if she is successful it's likely that her dad would be ordered to pay her costs, she would not get that until the end of the case.

As she isn't looking to buy with her partner immediately, I would suggest that she start by giving her dad a specifc deadline - for example, to say that she needs her money put of the house but is willing to wait until (say) the beginning of August before they put it on the market, to give her Dad 3 months to try to find alternative options.

Put that to him in writing, and keep a copy. Remind him in July that the deadline for him to find a way to buy her out, put to put the house on the market is August, and arrange to have 2 or three local agents come out to advise about selling.

That way, if she then does have to take formal steps he has already had ample warning and plenty of time to make enquiries, and cannot (realistically) argue that she has been unreasonable.

She should also check what the agreement they signed actually says - it might include provisions for what steps are to be taken if one wants to sell, in wich case she should of course follow those steps.