Am I entitled to money back when house is sold

Auntyloopy

I just need some advice. I bought into my mums house nearly 10years ago to release some equity for her. The house was at the time valued at £139500, I took a mortgage out for £70k of which I kept £20k so I worked out that I had about a 37% of the value of the house. Now she wants to sell it and although the out standing mortgage is £50k and valued at £150k if it sold for that should I get back any money??? My mum thinks I'm not entitled to a single penny..... help

Pixie5740

Are you named on the deeds or is there a declaration of trust in place from when you bought into her house?

Is the mortgage secured against your mum's house or another property?

Auntyloopy

Deeds are in mine and my mums name and the mortgage isn't secured against anything

Auntyloopy

The issue I have as well is that I want to speak to an advisor with her so they can say to both of us if it sells for what you want you are entitled to xyz and xyz. But she refuses to because she doesn't think I should get anything back. I thought maybe about 3-4K once the mortgage is paid off but some mortgage advisor said that I would get 37% of the what was left which was 100k so I would get about £35k... great for me but my mum would see it...

[Deleted User]

You need this to be discussed with the lawyer who is selling the house for your mum. Your mother either needs to share the proceeds, or buy out your share of the property.

An equity release is not 'free money'

carslet

Auntyloopy wrote: »

Deeds are in mine and my mums name and the mortgage isn't secured against anything

So you got a mortgage for 70k and the lender did not care what it was for? They did not ask what you were doing with it.

Who was the lender sounds like a good one

Auntyloopy

She won't even offer to buy me out of my share she just want to sell it and leave me with nothing. Even though I have paid the mortgage for the past 10 years I have been paying rent on her share of what she owns. This is the 1st time I have owned a house even if it's only part of it but I was hoping to get some money back if it's gone up in price..... I just haven't got a clue how it works.. plus if I know what I was possibly going to receive back then I would know if I can buy another house on my own.. hope that makes sense.. I'm just confused ;)

[Deleted User]

Can you block the sale of the house?

Auntyloopy

She has 2 agents coming round next week so it's not even on the market yet. To be honest I just want out she has something sorted but I think she thinks I am stupid and that I will believe her when when she says I'm not entitled to anything

Auntyloopy

I only bought into the house so that she wouldn't loose it and now she seems to be taking advantage

kinger101

If you took a mortgage out, it would have been secured against the property. It could have been an unsecured loan, but the fact your name is on the deeds indicates this isn't the case. You need to clarify this further.

It would have been good to agree what you got in return for providing your mum with £50K.

In the absence of any agreement, at first glance it might seem you have a 37% equity stake, and would therefore be entitled to 37% of the sale price of the property after accounting for legal fees etc.....I presume you're also willing to take the loss if it sells for £130K.

However, there might be subtle things that could alter this if it ended up in court. What rent was paid? How will bills for maintenance split? Given your name is on the deeds, you will really need to come to some sort of agreement before it's sold. Best thing you can do is speak it over with a solicitor, but whether you use one or two depends on how entrenched your mother's position is.