How to remove myself from joint mortgage?

Rich_122

Ok, I appreciate the advice. My income is only enough to cover these mortgage payments plus my living costs which is why I can't afford to rent elsewhere. I am not as wealthy as my parents unfortunately.

Bluebirdman_of_Alcathays

Is it an interest only mortgage or repayment?

Gilead

Essentially you are paying a portion of the mortgage, and have a stake in the increased value. If there is no reasoning with your parents you need a solicitor, and yes that will involve costs and potentially court action - if an agreement cannot be reached before it gets to that stage.

My view is that you have contributed £10800, have a share of £100k equity and it would make no sense for you to walk away from that. Your £600 per month is not rent, it is you servicing the mortgage. You need legal advice so I would encourage you to visit a solicitor to discuss.

bowlhead99

Rich_122 wrote: »

Unfortunately they are just being difficult, financially, me leaving the mortgage will not affect them, but they still will not make it easy. I really would rather avoid court!

You are on the mortgage and presumably a part owner of the house. The reason you posted here was to find out how to get yourself removed so you are no longer an owner of the house and no longer liable for the mortgage allowing you to go your separate ways.

So, if you would like to avoid taking them to court to exercise your rights (which will be costly as well as damaging to the relationships, such that they are not already irreparably damaged ), you will need to convince them to mutually and amicably agree on the next steps to get you out of this untenable situation.

The way to do that is either to

amicably agree for them to buy you out of your share, or

amicably sell the property, pay off the mortgage and take your respective shares of the remaining proceeds, or

if it can't be done amicably, apply to court for an order to sell the place. As they don't live in the property and you are not turfing them out onto the street destitute it would be relatively straightforward but you would all need legal advice so it would not be cheap, and you don't really want a property to be sold under the direction of a court when you could just agree amicably to sell it, and work together to try to get a good price rather than be desperate to take the first bid you get.

If you are looking to sell and you have other tenants or lodgers apart from yourself, that's another headache to deal with. Obviously the best thing to do is to convince them to buy you out of the untenable situation and have them get a new BTL mortgage on their own. Perhaps by telling them that you have been looking for a way out and it seems from your research that the only way out if they don't agree is court, they will realise how serious you are.

Pixie5740

Rich_122 wrote: »

Ok, I appreciate the advice. My income is only enough to cover these mortgage payments plus my living costs which is why I can't afford to rent elsewhere. I am not as wealthy as my parents unfortunately.

So let the entire property out then as I have already suggested or stay feeling trapped. It's up to you.

Rich_122

Thank you, that makes sense and is a good way to approach things. I will show them I am serious and try to resolve this amicably. I have no interest at all in forcing a sale or going to court, I just want to mind my own business and move on.

bowlhead99

Rich_122 wrote: »

Ok, I appreciate the advice. My income is only enough to cover these mortgage payments plus my living costs which is why I can't afford to rent elsewhere. I am not as wealthy as my parents unfortunately.

If you weren't covering the mortgage payments you could afford to rent elsewhere. So, the extreme solution is simply stop paying the mortgage payments, and rent elsewhere.

Your parents will continue to ensure the mortgage is paid, because they don't want the bank to repossess the house. Technically, you are just as liable as they are for the mortgage - you are 'joint and severally' liable - but for all practical purposes, it is them that has their life savings in the house, so they are not going to let the bank repossess it and sell it at auction for way less than the £550k it's worth.

So, you would then be out, having forced their hand. Then you can agree between you to try to fix things amicably or to do the court thing which is not in any of your best interests. If the whole thing gets sold there may be early repayment penalties if your mortgage was arranged at a fixed price for several years in advance, so selling could be very expensive from that perspective.

You have put in £11k and they have put in £x on purchase and £y on mortgage since and the bank has put in £z of mortgage funding to support the original purchase. You should not look at it as "I've put in £11k out of £450k, that's tiny, not worth anything". The bank doesn't get an ownership share for its £z. So in simple terms it is arguably just your £11k vs their £x and £y to determine how much of a % of the asset you bought, unless you have some sort of deed of trust agreeing who owns what and how a sale or transfer of equity should be handled.

Mojisola

Rich_122 wrote: »

I live there with my sister and one person who is renting a room.

Rich_122 wrote: »

They do not live with me

How much rent could you charge a tenant for your room?

AdrianC

Can we just clarify exactly what's going on here?

18mo ago, you bought a house with your parents.
How is that property owned? Joint tenants, tenants in common? Did you make any financial contribution towards the purchase?

That house is mortgaged.
Interest-only? Repayment? LTV? What are the total monthly repayments? Is it BtL or normal owner-occupier?

That house is lived in by you and by two other people.
One of them is your sister - is she a joint owner, too? You receive no share of the rent received by your co-owners from the non-owner occupant(s)? Do you pay any other costs towards the maintenance of the property?

It sounds like, basically, your £600/mo is being seen by your parents as rent for the room you occupy in this shared property. Your housemates are lodgers, since you're a live-in landlord. They have very little security of tenure.

silvercar

Rich_122 wrote: »

I live there with my sister and one person who is renting a room. I don't know why they do not want me to leave specifically, it's an emotional/personal thing to them. Their reasons are irrelevant to me now, I just need to get out as it's affecting my life being trapped in this situation. They have more than enough financial power to afford the mortgage without me so that is a non issue.

Is this a BTL mortgage or residential?

I'm guessing that it is residential as you are part owner and living there. So you are saving your parents the cost of having had a BTL mortgage (higher interest rate and/or high deposit requirement).

If you decide to move out, then you and your parents will need to ask the lender for consent to let or transfer to a BTL mortgage. The obligation to do this falls to all 3 of you jointly, not just you. Whether you would get consent is not known, the fact that a relative would still be living in the property may complicate the issue.