How to remove myself from joint mortgage?

Rich_122

Ok, 18 months ago my parents used their savings to buy the house. I believe the deposit was around 50%. This was all their money, not mine.

I then moved in, paying £600pm for my room, and taking the role as the landlord. We then had 2 tenants moving in, their rent covered the mortgage costs entirely.

The £600 I pay per month is "rent", but it's not as I'm buying into the house by paying the mortgage. This is all what I've been told, they've kept me out of the loop. My room could be rented for approx £900 to a tenant.

The mortgage is not buy to let, this is why they got me to move in. There is no way they could manage having tenants without me, I have done all of the legwork from finding tenants to keeping the house in check.

I don't know specifics about anything else as they simply haven't told me. I know it's bad. I trusted them and did not make any effort to get further details when we first did this.

Bluebirdman_of_Alcathays

I bet £5 the parents are not declaring the rental income they are receiving (which is what this is). That gives the OP a very handy tool to encourage a resolution.

Pixie5740

If the OP is jointly named on the mortgage with his/her parents then would whatever (s)he is paying each month not just be his/her contribution towards the mortgage? What the sister and lodger pays is rent though. Who receives the rent money from the lodgers? It should be the OP.

OP, do you have absolutely nothing in writing about the mortgage? Do you even know who the mortgage is with? If you do then you could contact the lender and request the information from them directly.

Bluebirdman_of_Alcathays

Pixie5740 wrote: »

If the OP is jointly named on the mortgage with his/her parents then would whatever (s)he is paying each month not just be his/her contribution towards the mortgage? What the sister and lodger pays is rent though. Who receives the rent money from the lodgers? It should be the OP.

OP, do you have absolutely nothing in writing about the mortgage? Do you even know who the mortgage is with? If you do then you could contact the lender and request the information from them directly.

Apologies - I have clearly misread this scenario (although I think that's understandable!)

AdrianC

Rich_122 wrote: »

I don't know specifics about anything else as they simply haven't told me. I know it's bad. I trusted them and did not make any effort to get further details when we first did this.

Do you often sign contracts making you liable for £225,000 of debt without reading any of it?
Do you not have copies of the paperwork? Has the lender never sent you anything?

Contact your lender, make sure they have the correct correspondence address for you, and get copies sent to you, to find out exactly what you're legally bound to.

The other important detail is how the property's owned - a few quid to the Land Registry online will tell you this.

If it's tenants-in-common, then the property will be 100% owned by you as and when your parents pass away. I'm presuming they're not particularly elderly, though. If the property's sold, then it's down to the three of you to determine who receives what.

If it's joint tenants, then each joint owner has a %age ownership specified. If the property's sold, you should receive that share. If the property raises £330k after the mortgage is paid and all fees, and you have 1/3 ownership, then you should receive £110k.

Rich_122

I didn't want to be too specific about my relationships on here, but so that you understand better: My father is a control freak and dictated this scenario. I thought it sounded good and went along with it.

I know who the mortgage is with, but he has managed everything else and all correspondence goes to his address, not mine. I will contact the provider and request all information.

Based purely on what he has told me, my mother owns 98%, he owns 1%, and I own 1%.....

I apologise for the lack of information. You can understand why I am so unhappy now. I have been living in a bubble.

AdrianC

Rich_122 wrote: »

My father is a control freak and dictated this scenario.

OK, but...

I thought it sounded good and went along with it.

...this bit takes precedence.

Well done on waking up to the reality - and good luck in extricating yourself. I suspect that when you look back in a few decades, you'll find this a pretty defining moment in your relationship with your parents.

fairy_lights

How old are you OP?

pinkshoes

Why not rent your room out for £900, pay your share of the mortgage, then rent elsewhere?

Have you seen the paperwork stating you own 1%? If not, get hold of the deeds and find out who owns what.

Is it possible that they wanted you on the mortgage and as a small percentage owner to avoid tax, or have a lodger situation rather than renting out an HMO?

It is about time you started doing the maths and pushing for a fair deal.

Your comment about paying the mortgage INTEREST also rings alarm bells. Is it an interest only mortgage? If they put the deposit down, then your gain would then only be 1% of the price increase, so £1000 so far...

Mojisola

AdrianC wrote: »

If it's tenants-in-common, then the property will be 100% owned by you as and when your parents pass away. I'm presuming they're not particularly elderly, though. If the property's sold, then it's down to the three of you to determine who receives what.

If it's joint tenants, then each joint owner has a %age ownership specified. If the property's sold, you should receive that share. If the property raises £330k after the mortgage is paid and all fees, and you have 1/3 ownership, then you should receive £110k.

It's the other way round - 'joint tenants' all own all the property; 'tenants in common' own a specific % of the property.

https://www.gov.uk/joint-property-ownership/overview