Sisters dilemia

scoops82

Hi


Hoping for some advice on a messy situation my sister has with her BF. It would be good to get an idea of people thought before talking in more detail about my sister as she gets stressedd /wound up very easily


1 - They have split up and have a 3 year old child
2 - She still lives in the house with my nephew and he is sofa surfing until he finds a more permanent rental - or buy his own place.
3 - They own a house 51/49 in my sisters favour
4 - He has charges against his share of the house - we estimate about £20k but we don't know for sure
5 - He is receiving a payout from work from an accident - in the region of £40-45k
6 - He wants to sell up and take his share to enable him to buy (not sure he would get a mortgage with his credit history)
7 - Not a great deal of equity in the house - maybe £15-30k on a house valued at £120k
8 - My sister works , part time and is on about £12k (that's her PT salary) - no savings.




Can he force her to sell up?
Would he be eligible for a mortgage? Very vague I know but he has had big debts on the pats and I don think he is too fussed about paying them off with his compo - I might be wrong though.
Would my sister qualify for a mortgage - do they include child benefit as income?
I think she gets some tax credits too or some from of payment - can any of that be included?
I think she receives an agreed amount of maintenance from the BF - nothing is in writing and he is not the best payer.


Sorry for the long and confused thread - any help would be really appreciated.
S

AnotherJoe

scoops82 wrote: »

Hi


Hoping for some advice on a messy situation my sister has with her BF. It would be good to get an idea of people thought before talking in more detail about my sister as she gets stressedd /wound up very easily


1 - They have split up and have a 3 year old child
2 - She still lives in the house with my nephew and he is sofa surfing until he finds a more permanent rental - or buy his own place.
3 - They own a house 51/49 in my sisters favour
4 - He has charges against his share of the house - we estimate about £20k but we don't know for sure
5 - He is receiving a payout from work from an accident - in the region of £40-45k
6 - He wants to sell up and take his share to enable him to buy (not sure he would get a mortgage with his credit history)
7 - Not a great deal of equity in the house - maybe £15-30k on a house valued at £120k
8 - My sister works , part time and is on about £12k (that's her PT salary) - no savings.




Can he force her to sell up?

I'd say "perhaps" in one of two ways. First by getting a court order, second by stopping contributing any money making her go into default. Unless the nephew is paying his way?

Would he be eligible for a mortgage? Very vague I know but he has had big debts on the pats and I don think he is too fussed about paying them off with his compo - I might be wrong though.

Impossible to know
Would my sister qualify for a mortgage - do they include child benefit as income?

Id say no way she'd get one that would cover this house. £12k plus benefits isn't going to cover what, from what you've said, is around a £100k mortgage !

I think she gets some tax credits too or some from of payment - can any of that be included?
I think she receives an agreed amount of maintenance from the BF - nothing is in writing and he is not the best payer.


Sorry for the long and confused thread - any help would be really appreciated.
S

From what you've written she will likely be better off selling up and then renting unless she can buy a substantially cheaper place, say a one or two bed flat and take in a lodger (nephew?).

She also obviously needs to get the arrangement regards child support from the ex formalised

ACG

scoops82 wrote: »

Hi
(1)Can he force her to sell up?
(2)Would he be eligible for a mortgage? Very vague I know but he has had big debts on the pats and I don think he is too fussed about paying them off with his compo - I might be wrong though.
(3)Would my sister qualify for a mortgage - do they include child benefit as income?
(4)I think she gets some tax credits too or some from of payment - can any of that be included?
(5)I think she receives an agreed amount of maintenance from the BF - nothing is in writing and he is not the best payer.

(1) - yes but not difficult or cheap with a child involved. Although he may stop paying towards everything to force the sale?

(2) Difficult to say, it depends on a lot but could not rule it out.

(3) Again, potentially. Some lenders do include tax credits and benefits.

(4) As above.

(5) Some lenders would include it as income if it was regular and could see it for 6-12 months. Others would only include it as income if it was through the CSA or court ordered. Its probably not a great idea to rely on income that is not paid regularly though.

scoops82

Thanks for your replies - as my nephew is 3 in the summer I cant see him contributing


Its as I expected, I think she is better off selling the house and having a clean break and not having the stress of having to rely on him. The likelihood is though that she will never get back on the housing ladder.


Its unlikely that she will get a mortgage to buy him out and he could stop paying at any moment, forcing her to find the whole mortgage (which she might pay already im not sure) or let the house get reposed and then lose out on some of the equity they have in the house and also ruin her credit rating.


We cant offer a lump sum to the BF as she would be able to take the house on her own and he would still have charges against it?


IS there anyway me or my dad could help?


Is the only way to buy the BF share but then be liable for second home charges etc? Do guarantors exist for mortgages?


I think that the gist - any help is appreciated as my sister is quite stressed.

antrobus

scoops82 wrote: »

....3 - They own a house 51/49 in my sisters favour....

Which kinda implies that there is some kind of agreement in place regarding the ownership of the property. What does it say?

scoops82

I think its just a tenants in common - she had a slightly bigger deposit I think.


Would/Should that state what happens if there is a break up of the relationship?

AnotherJoe

scoops82 wrote: »

Thanks for your replies - as my nephew is 3 in the summer I cant see him contributing

?????? Maybe I missed something but you did write "She still lives in the house with my nephew and he is sofa surfing until he finds a more permanent rental - or buy his own place."

??????

Ah - penny has dropped I think. Did you mean "She still lives in the house with my nephew and BF is sofa surfing until he finds a more permanent rental - or buy his own place."

ps the only deals I can think of where you could help woudl essentially involve you gifting large sums of money to buy bf out and leave a small enough mortgage that she could buy it on her wages. Thats going to be a lot of money.

Perhaps you, sis and dad could get a mortgage together but then as you say you get into second house SDLT should you wish to buy or straight away if you already own a house.

antrobus

scoops82 wrote: »

I think its just a tenants in common - she had a slightly bigger deposit I think.....

Then ownership would be 50:50. Perhaps your sister just thinks that the a 51:49 split would be 'fair'. The boyfriend might disagree, and think something else is fair.

scoops82 wrote: »

...Would/Should that state what happens if there is a break up of the relationship?

If there was an agreement, normally known as a Trust Deed, then that is the kind of thing that it would cover. Best advice for an unmarried couple buying a house together would be to get one. People frequently don't however.

In the absence of a Trust Deed, TOLATA applies.

mrginge

I think you need to know more about these 'charges' and who they are against.
There is a big difference between a charge and a restriction.

scoops82

Ah - penny has dropped I think. Did you mean "She still lives in the house with my nephew and BF is sofa surfing until he finds a more permanent rental - or buy his own place."


Yes - sorry, I should have been clearer.


Maybe I have the name of what they have in place wrong - there is definitely something that says 51/49 split but maybe that means they own 50/50 but sale proceeds are split 51/49???? That is a deed of trust?


What's a TOLATA? Or am I being think lol


Thanks again.

antrobus

scoops82 wrote: »

...Maybe I have the name of what they have in place wrong - there is definitely something that says 51/49 split but maybe that means they own 50/50 but sale proceeds are split 51/49???? That is a deed of trust?...

It could be. You would need to get your hands on the "definitely something that says 51/49 split" to see what it says.

scoops82 wrote: »

...What's a TOLATA? Or am I being think lol....

Trusts of Land and Appointment of Trustees Act 1996