House purchase query

Jc1984

So it's my first post I'll do my best to outline the situation.

Around 6 years ago my dad and brother Brough our family home from our local council. Due to try g ro sell a house I had with an ex partner I could not be on another mortgage at thar time.

My dad and brother moved out to my nans old house and I have lived there for 6 years either with having a lodger or now with my partner and our little one.

I / we have always paid the mortgage always and bills and we have always had an understanding that me and by brother have half of the value of the house my dad does not want anything out of it.

Now my brother has demanded his half of the equity around 40k which we can't afford with out baby and childcare costs etc . It's for no other reason that he has spent his deposit he saved for the house and sees this house as some easy cash.

My parker I'd worried and I have spoken with my dad about this and he has said not to worry as he won't agree to any money being released or me and my partner purchasing the house unless it is resonate and fair.

My question is can my brother do anything g at all ?

AnotherJoe

Yes, he could take your dad to court to force a sale. Will be expensive but can be done.

Jc1984

Thanks for the response. Although an option I think that if he did this he would have no relationship with the rest of the family anymore and loose any inheritance from my dad as we were brought up by him in a very close family

AnotherJoe

It won't be the first time families haven't talked to each other over money/inheritanc !
Can your dad sign over his half of the property to you?

You should also check if your dad and brother are tenants in common, or joint tenants. If joint, then if your dad got run over by a bus tomorrow, the house you live in becomes your brothers. If they are joint, your dad can very easily, without brothers permission, change that to common.

G_M

Your brother owns half a property but is getting no benefit from it at all. So it is not unreasonable for him to want to sell. What he plans to do with this money, and why he is now in need of it, is irrelevant. He has an asset and should be able to sell it.

You, on the other hand, are a tenant. You are paying rent via payments to a bank mortgage account presumably in your brother & father's joint names.

Just like thousands of tenants all over the country, you are subject to a certain insecurity as a result, and when a landlord wants to sell, then, depending on the type of tenancy, the tenant may be evicted.

Of course, this is all complicated by the facts that:

a) it's family, and
b) you have joint landlords who seemingly disagree

The ideal solution would be for either you, or your father, (or both jointly) to buy your brother's share. £40K is not massive - could you and your father not pay £20K each for example?

Your brother would then be out of the equation, you could continue to live there, he would have his money, and family unity could be maintained.

As an aside, I hope your father and brother are decent landlords:

* arranging annual gas inspections?
* declaring the rent to HMRC?
etc.

Jc1984

Hi thanks for the responses. Dad and brother are jointly on the mortgage and deeds. Dad's retired so don't want to go down the route of him buying my brother out. Ideally me and my partner want to purchase the house and have said to my brother can he wait until we can afford to buy him out. Understand that legally we are just tenants.

AnotherJoe

Jc1984 wrote: »

Hi thanks for the responses. Dad and brother are jointly on the mortgage and deeds. Dad's retired so don't want to go down the route of him buying my brother out. Ideally me and my partner want to purchase the house and have said to my brother can he wait until we can afford to buy him out. Understand that legally we are just tenants.

Can you post some values.
How much is the house worth.
Whats the size of the mortgage left to pay.

Would your dad consider giving you his half of this house now, which woudl presumably allow you to afford a mortgage on the rest, buying brother out, and them amending his will so that upon his death, that is refelcted in whatever is deemed a fair split.

For example, lets say dad intends to leave to you two 50/50. Say this house is worth £100k. Dad gives you his half, worth £50k half of which is £25k.
Dad then makes his will so that when he dies, £25k is taken from the estate and given to brother before you split the rest of the estate. So if his estate was worth say £250k, brother gets £25k then you split the rest and get half of what's left, £112.5k each.

Jc1984

Hi get what your saying. Dad's thinking is if we were to buy the property from him and my brother he would gif his half so around 36k to us a deposit. Having just had a child we want to keep the costs down as childcare costs 1k a month. Have put to brother if he can wait 3 years until we can get childcare costs down

AnotherJoe

If you can afford to pay the mortgage now, which you are doing so I understand, why can't you afford to get one if given a £36k deposit?
It isn't really your brothers problem if you chose to have children and incur large costs, you've blamed him for spending his deposit money but you've done the exact same, just on a child instead of whatever he spent his on, but both were discretionary purchases. His at least don't seem to have ongoing cost of £1,000 a month.

Post the numbers or it's a bit pointless but on the face of it you are using your choice to have children to deprive your brother of his chance to buy a house What are the combined salaries of you and your partner ? From what you've posted so far it oniy looks like you'd need a £40k mortgage. How can you possibly not afford that if you are paying an £80k mortgage at the moment?

Have you enquired about getting a mortgage ? Or do you just not fancy getting one yet ?

Jc1984

The money would stay in the house to keep costs down by my brother expecting his 36k it was old make the mortgage unaffordable I find you point and comments in children offensive to say the least. I am after advice not silly comments

AnotherJoe

What factually is incorrect in my statements ?
You chose to have a child, your brother chose to spend his money on something else. You criticise his choice yet get offended when someone criticises yours? Why is your choice OK amd his isn't ?

Amd more to the point why can't you amd partner together afford what would be from what you've posted, a tiny £40k or so mortgage ?

Have you even tried to get a mortgage ? Or is it as simple as you'd prefer not to since you have more money to spend and it's only your brother that's inconvenienced ?