Jointly owned house A.N. Other moving in

Soundgirlrocks

Hi All

Looking of some advice not sure if this is the right board but it seem the one that best fits.

Stepmum and I were left my fathers house it is held in trust with my step mum having the right to live there for the rest of her life. We are both named as trustees, however she can't rent it out if she ever wanted to move she would need to sell it. She has recently decided to remarry and I'm wondering about what the options are with the house. I'm uneasy about the wedding she hasn't know her fianc! long at all 6 weeks:eek:
And isn't great with money:eek::eek:

I promised my dad I would look after her. So hopefully someone can answer my questions

1) New hubby moves in, they then divorce will he have any rights over her 50%
2) New hubby moves in and something happens to stepmum, will I end up automatically Tenants in common with the new hubby (and can I force him to sell or would he have the right to reside?)- Assuming any will she currently has is null and void once they are married.
3) If they decide to set up home else where I would probably look to get a buy to let and buying her out of the property with the view that should the worst happen and they split she could move back in and just pay me enough rent to cover the interest on the mortgage and maintenance costs (so I'm not out of pocket)

As I said she isn't great with money and I worry if she releases the equity in the house it would be spent rather than invested in another property. I wish they would just be content to live together as I think this would make her less vulnerable but I don't she will listen to reason.

This has all happened very quickly, I'm going to see her soon and I'd like to know all the possibilities before hand. Hopefully he is really lovely and I'm being paranoid but its just so quick_pale_

xylophone

Are you sure that you understand the nature of the Trust that has been created?

What are the exact terms of the will?

GobbledyGook

What are the terms of the trust? Do you both own 50% or was the house left to you with your SM having the right to live there for the rest of her life? Are there any clauses about remarriage?

AdrianC

Your major concern here seems to be that your stepmother is making a mistake in a relationship. Isn't that, well, her problem?

Yes, her will can leave HER HALF of the shared property to whoever she wants. Intestacy rules would apply as normal, so a spouse comes first.

Equity release might be harder for her, because the property's jointly owned, but if she does release equity then is there any particular reason she shouldn't be allowed to waste her money if she wants?

moneyistooshorttomention

I think this is where it would be useful to see the exact wording of this bequest.

....and...yes....six weeks is RATHER short period of time in which to commit to marrying someone - eek!

TBagpuss

Does your step mum own half the house or does she only have a life interest?

If she owns half, then she could leave her share to her new husband (and once they are married, he would (assuming the vlaue is less than £250,000) inherit it anyway if she didn't leave a will.

If they wer eto divorce, he would potentially have a claim against her interest in the house, however the extent of any claim would depend on other factors including how long they were married for ,and their respective financial needs at that time.

Depending on your relationship with your step-mum, you could talk to her about the possibility of her having a pre-nup to protect her interests.

princeofpounds

1) New hubby moves in, they then divorce will he have any rights over her 50%

Assuming it is not considered a legally short marriage, then yes it will be one of the marital assets subject to a divorce settlement. It is not necessarily 50%, but you should assume there would be some kind of potential claim. Assuming she is actually a co-owner and does not have just a life interest.

2) New hubby moves in and something happens to stepmum, will I end up automatically Tenants in common with the new hubby (and can I force him to sell or would he have the right to reside?)- Assuming any will she currently has is null and void once they are married.

Firstly her part of the house will pass to her estate, managed by her executor(s) either in accordance with her will or intestacy rules. Then it will be distributed to the beneficiaries. So if her new husband becomes a beneficiary, then yes you would end up co-owners in the same form of tenancy as was already existing, I believe.


If he becomes a co-owner, he has the right of occupancy on that basis. He is unlikely to inherit any lifetime rights under the terms of the trust (99% sure, but I can't say never because I don't know the exact terms).


However, you would also have a good chance to force a sale if necessary, as co-owners are not generally allowed to 'trap' the capital of one another indefinitely. But if not agreed, then it involves court hassle and some cost.


Any previous will she had will be voided by her marriage, unless it contained specific clauses (which it probably doesn't based on her previous situation).

3) If they decide to set up home else where I would probably look to get a buy to let and buying her out of the property with the view that should the worst happen and they split she could move back in and just pay me enough rent to cover the interest on the mortgage and maintenance costs (so I'm not out of pocket)

You will not be able to get a BTL mortgage (assuming that is what you mean) and rent to a family member.


Getting married after 6 weeks is rather crazy, but rather than squish the romance (assuming he is not obviously dodgy) which might ruin your relationship, I think it is best to emphasise protecting herself.


Being clear on her inheritance wishes is one thing (whatever they are). A new will is another.


Do not let the new husband spend anything more than rather modest amounts of money doing the place up. It can establish a beneficial interest.


Ensure no debt is taken over the property without your/her knowledge. I think there is a land registry notification service that can monitor that for you.


Pre-nup is a possibility.

Land_Registry

princeofpounds wrote: »

I think there is a land registry notification service that can monitor that for you.

The service is called Property Alert and whilst aimed at helping to prevent fraud it can be used for other purposes as well as it is a monitoring service only

Soundgirlrocks

Thank you all for your replies

GobbledyGook wrote: »

What are the terms of the trust? Do you both own 50% or was the house left to you with your SM having the right to live there for the rest of her life? Are there any clauses about remarriage?

Here is the exact wording of the will, Step mum and I are the Executors and Trustees

I give my house XXXXX to my Trustees on trust for sale on the following terms:

• My Trustees shall permit my wife XXXX to live in the house without payment to them so long as she wishes and so long as she keeps the house in repair insures it and pays all outgoings relating to it;
• While the Occupant is entitled to live in the house my Trustees shall not sell it without her consent
• When the Occupant has ceased to be entitled to live in the house my trustees shall hold it as part of my residuary estate.

My Trustees shall hold the residue (my residuary estate) upone trust to divde the into two equal shares and to hold the same as follows:

• As to one such shares in trust for my wife XXXX absolutely
• As to the remaining one such share in trust for my said daughter XXXX

AdrianC wrote: »

Your major concern here seems to be that your stepmother is making a mistake in a relationship. Isn't that, well, her problem?

Is there any particular reason she shouldn't be allowed to waste her money if she wants?

Yes it is her business ultimately, but I promised my father I would look after her, my dad left her her in a comfortable position with a mortgage free home and lump sum and a pension. She has spent the lump sum and I'm an concerned she will end up penniless without a roof over her head (which was pretty much the state she was in when she married my dad)

Re buy to Let question my thoughts would be to run it as a regular BTL, but if things were to go sour there would be a home my step mum could rent at a minimal rent. However I would need to think carefully about this I would be hit with the new changes to stamp duty on second properties etc so it wouldn't be a decision I would take lightly

AdrianC

Soundgirlrocks wrote: »

Here is the exact wording of the will, Step mum and I are the Executors and Trustees

I give my house XXXXX to my Trustees on trust for sale on the following terms:

• My Trustees shall permit my wife XXXX to live in the house without payment to them so long as she wishes and so long as she keeps the house in repair insures it and pays all outgoings relating to it;
• While the Occupant is entitled to live in the house my Trustees shall not sell it without her consent
• When the Occupant has ceased to be entitled to live in the house my trustees shall hold it as part of my residuary estate.

My Trustees shall hold the residue (my residuary estate) upone trust to divde the into two equal shares and to hold the same as follows:

• As to one such shares in trust for my wife XXXX absolutely
• As to the remaining one such share in trust for my said daughter XXXX

So while she chooses to live there, the trust is the owner of the property. When the trust ceases to have effect, half of the house is hers to do with as she sees fit. The trust will cease to have effect when she dies. At that point, it's regarded as part of your father's estate, given 50/50 to you and your stepmother. And, yes, that would include her leaving it to whoever she wants, either in her will or via intestacy.

I'll leave it to others to decide if the trust ceases to have effect if she merely decides not to live there any more or not - but it seems to me that it would.

...but I promised my father I would look after her...
I'm an concerned she will end up penniless without a roof over her head (which was pretty much the state she was in when she married my dad)

Your promise and concern carry no legal weight. B'sides, there's a difference between "looking after her" and removing her right to make her own decisions in life. As a rough rule-of-thumb, I'd have said that looking at PoA as a guide would not be inappropriate. While she retains the ability to make her own decisions, she is entitled to do so. After that point, you take over, but always bearing in mind her best interests and what she would have wanted to do if she was still capable. You can offer her your advice, but whether she wishes to take it or not is her choice.

Alter_ego

Soundgirlrocks wrote: »

Yes it is her business ultimately, but I promised my father I would look after her, my dad left her her in a comfortable position with a mortgage free home and lump sum and a pension(

Be careful if it's a spouse's pension from a final salary scheme. Sometimes spouse's pensions cease on re-marriage