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Mortgaged property bought jointly, who owns it?
ftsos
Posts: 173 Forumite
Hello MSF Forum Members,
I have a situation, and I need some advice urgently. This is a very unfortunate situation. I bought a house as a council right to buy. I was tenant in that house, so was my wife and my mother. Me and my mother have lived in that house around 13 years prior to buying it. Now, my mother is a pensioner, and has no income apart from the basic state pension. So because this is in London I had to provide a huge deposit, almost £90,000 from what I remember, and I had to show a strong income statement. I am self employment, so this mortgage took me a year to get, and I am not exaggerating. It was seriously hard for a self employed person to get a mortgage. My wife also showed her income, but she only works 6-8 hours a week, so it wasn't much. We also got a substantial discount off the purchase price as a right to buy, however, that meant, in the first 10 years (or it may be 5 years not sure), we would have no choice but to sell it back to the authority if we wanted to sell it, and we would also lose the discount.
Although I and my wife's name is on the mortgage, my mothers name is not. However, we were ethical, and put her name as an owner. So she is on the land registry as joint owners with my wife and myself. All 3 of our names are on the deeds of the property.
Now, I don't want to sell this house at all. But me and my mother have had a falling out. I did not want this falling out. The issue between us is very personal, as it could not be resolved, I moved out and left a 3/4 bed house for her to live in and enjoy. She doesn't even have to pay any bills. Even though we have had a falling out, that is unlikely to be resolved, she is after all my mother, and even if she took a knife to me (silly example I know), I would still feel compelled to make sure she is not going without and has the essentials.
Now, my question is about the following:
If I sold the house as a last resort, is it a 3 way split, or is it 50% my mother and 50% my wife and me. I always thought or assumed its 3 way. I really need to know as its causing me sleepless nights.
If my mother was to buy a one bed property for herself, and say we were to rent this whole house out, would we need to split the income 3 way, or does my mother get half?
I looked at some of the solicitors letters and deeds, and I think it says, in the event of my mothers dies, the ownership of her share of the property automatically goes to the other owners of the property or mortgage holders. I assume she can't then create a will for this property and give her share to someone else? I realise the last question is a bit complicated.
I know this is a complex issue, and I apologise for it. However, if anyone has any legal knowledge around this area, or has had similar experiences, and if you could shed some light, it would be of real help to me.
Thank you in advance.
P.S. I gave you a bit of background information to give you proper perspective on the situation, so you may advice better (hopefully). Thanks.
I have a situation, and I need some advice urgently. This is a very unfortunate situation. I bought a house as a council right to buy. I was tenant in that house, so was my wife and my mother. Me and my mother have lived in that house around 13 years prior to buying it. Now, my mother is a pensioner, and has no income apart from the basic state pension. So because this is in London I had to provide a huge deposit, almost £90,000 from what I remember, and I had to show a strong income statement. I am self employment, so this mortgage took me a year to get, and I am not exaggerating. It was seriously hard for a self employed person to get a mortgage. My wife also showed her income, but she only works 6-8 hours a week, so it wasn't much. We also got a substantial discount off the purchase price as a right to buy, however, that meant, in the first 10 years (or it may be 5 years not sure), we would have no choice but to sell it back to the authority if we wanted to sell it, and we would also lose the discount.
Although I and my wife's name is on the mortgage, my mothers name is not. However, we were ethical, and put her name as an owner. So she is on the land registry as joint owners with my wife and myself. All 3 of our names are on the deeds of the property.
Now, I don't want to sell this house at all. But me and my mother have had a falling out. I did not want this falling out. The issue between us is very personal, as it could not be resolved, I moved out and left a 3/4 bed house for her to live in and enjoy. She doesn't even have to pay any bills. Even though we have had a falling out, that is unlikely to be resolved, she is after all my mother, and even if she took a knife to me (silly example I know), I would still feel compelled to make sure she is not going without and has the essentials.
Now, my question is about the following:
If I sold the house as a last resort, is it a 3 way split, or is it 50% my mother and 50% my wife and me. I always thought or assumed its 3 way. I really need to know as its causing me sleepless nights.
If my mother was to buy a one bed property for herself, and say we were to rent this whole house out, would we need to split the income 3 way, or does my mother get half?
I looked at some of the solicitors letters and deeds, and I think it says, in the event of my mothers dies, the ownership of her share of the property automatically goes to the other owners of the property or mortgage holders. I assume she can't then create a will for this property and give her share to someone else? I realise the last question is a bit complicated.
I know this is a complex issue, and I apologise for it. However, if anyone has any legal knowledge around this area, or has had similar experiences, and if you could shed some light, it would be of real help to me.
Thank you in advance.
P.S. I gave you a bit of background information to give you proper perspective on the situation, so you may advice better (hopefully). Thanks.
0
Comments
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Is she just a legal owner/trustee or is she also an equitable/beneficial owner?
She could be listed as a legal owner but that doesn't mean she actually has any beneficial interest in the property.
Legal ownership (trustees): a b
Beneficial ownership (beneficiaries): c 50% d 50%
A and b have the right to sell the property, but c and d are entitled to the proceeds of the sale.What will your verse be?
R.I.P Robin Williams.0 -
Hi Mattye,
Firstly, a big thank you for your reply.
The problem is I don't know. All I know is I bought the house applied for a mortgage, and she was not on the mortgage application, however, she is on the deed of the property. However, on the deed its my name, then my wife name, and then her name.
Lets assume the worst for a second, and assume she is a beneficial owner, why does she get 50%, as there is 3 of us?
I just checked the Land Registry document, she is down as the proprietor, alongside my name and my wifes name.0 -
Does it say the % of her beneficial interest in the property? That's what you need to find out.0
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0
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Does it say the % of her beneficial interest in the property? That's what you need to find out.
No it doesn't say anything like that as far as I can see. However, it doesn't say it for me either. It just 3 names under the title document.
I have no problems if its equal decided into 3, even though I paid 100% of the deposit, and I am legally responsible if I fail to pay the mortgage. If she needs to take a third, I can live with that. However, I am not very comfortable with the way my mum is thinking at the moment. I am having to cover the costs for the house I am living in and the house my mums living in. So I need to figure things out worse case scenario.0 -
You are going to need get a solicitor no way round this..0
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Hi thanks. I have just read the link from start to finish. Its quite a lot to take in. If I have understood it correctly, then purchase like ours is a "Joint Tenancy", so we all have exactly equal share and equal rights. So that should hopefully means its a 3 way split.
However, what I am not sure about is that two people are a couple, me and my wife. Will that make any difference?0 -
No it won't. I'm surprised your mortgage company would let you do this. Or did you do it after you paid the mortgage off ?0
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AnotherJoe wrote: »You are going to need get a solicitor no way round this..
You might be right. The problem is I have a limited budget. Don't mind spending some money to get the answer. Do you know any online ones that could get me the answers cheap?
0 -
AnotherJoe wrote: »No it won't.
I have to ask, just to sanity check myself, how sure I you of this? Or how do you know this? I am not trying to be rude.0
This discussion has been closed.
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