Am I entitled to money back when house is sold

moneyistooshorttomention

Then how do you explain the fact that OP's name is on the deeds - as owning part of the house?

iammumtoone

rosyw wrote: »

A few of you think that OP should walk away with nothing, however, if YOU owned a 1/3rd share in a property - would you? I doubt it!!

They don't own a 1/3 share the bank does, they are paying the interest on the money lent from the bank.

People with mortgages don't own their houses, the banks do. They own the equity (which it appears there is none in this house in question). Its not until the bank has been paid off (which it hasn't in this case) that the person owns the house.

iammumtoone

moneyistooshorttomention wrote: »

Then how do you explain the fact that OP's name is on the deeds - as owning part of the house?

That comment from you surprises me.

Yes they do own part of a house and they will get part of the money from the sale.

The main point is they will not be able to keep that money from the sale as they owe it to the bank.

Therefore as the Mother said, they end up with nothing (or very little)

I don't think it has been explained to the OP very well but the end result is the same, they will not have much/any cash of their own left after this.

3mph

itchyfeet123 - sorry I don't have a toxic mother or family so didn't consider that side of things. But I guess it still depends upon how "toxic" and whether there are other members of the family and if they are also "toxic"

getmore4less

moneyistooshorttomention wrote: »

OP put in 37% of the house value. Therefore, even if the house was the exact same value, then OP is due to take back 37% of the value. 37% of even original house value is worth rather (a lot) more than an icecream.

the OP owns all the debt for that 37% still 50k take that off and there is not a lot left(£3,750)

That's before we go into the self-respect issue - ie how much self-respect will OP have if she lets someone else walk off with some of HER money?

rosyw wrote: »

OP OWNS (according to mum) a 1/3rd share of the house. When the house is sold OP is entitled to 1/3rd share of the proceeds after the mortgage and other expenses are paid, mum has SOLD that 1/3rd share in order to clear her debts & start a business. We don't know the circumstances behind OP taking out the mortgage, possibly mum had got into such a financial mess that she would have had to sell the house to clear her debts if OP hadn't stepped in? The £50K handed over to mum wasn't a gift!

A few of you think that OP should walk away with nothing, however, if YOU owned a 1/3rd share in a property - would you? I doubt it!!

The 1/3 is before the mortgage is paid off thats the money that the OP bought the share for they are responsible for all the debt.

That is how equitable shares work.

moneyistooshorttomention

Ah right - now I see that OP will have to repay her mortgage from her share of the house.

So - mother hands her back what she put into the house and then she repays what she owes the building society from that and then keeps the balance herself.

Art_Deco

How confusing!! Seems like a lot of money you have been paying out, the loan, mortgage, rent and £500 a month!! But can I ask where is your mother going to be living after she sells the house, if there has been no profit made will she be getting another mortgage, not knowing any ages of all involved, is it being sold for future care, etc.:eek:

rosyw

I've just read this whole thread again to try to get things straight!

So - the mortgage is in joint names - OP & mum. OP has not only been paying ALL the mortgage, but on top of that has been paying rent to mum for 2/3rds of the house, plus a further £500 a month towards bills & food. It would seem that mum has NOT been paying rent to OP for her 1/3rd and hasn't contributed to the JOINT mortgage. I would seem to me that mum has been doing very nicely thank you from this arrangement!

From this is seems to me that when the house is sold, as there is a joint mortgage and OP has already paid £20K off this, then both parties are equally liable, bearing in mind that mum, although taking rent from OP for her 2/3rds hasn't been paying OP rent on her 1/3rd, a 50/50 split would seem to be fair. So - mortgage is cleared and whatever is left is split between them, with OP taking 1/3rd.

ThePants999

Some folks are forgetting the £20K the OP kept. The mother effectively accepted a £70K charge on her house in return for £50K.

Here's an alternative way of looking at this: the OP loaned her mother £50K for 10 years, in return for a one-off and up-front £20K payment but no ongoing interest. That's frankly not a bad deal. If you got the £20K at the end of the period, you've effectively earned 3.4% compound, which isn't bad across the last 10 years, and I imagine it beats what the OP has paid on servicing the debt; getting it up front makes it even better. At the same time, the OP's had a roof over their head for a small amount of rent and bills.

So to quibble on whether the OP is additionally entitled to a third of the £10K increase in house value (minus selling costs) doesn't seem worth the family dispute to me.

Harryp_24

rosyw wrote: »

OP OWNS (according to mum) a 1/3rd share of the house. When the house is sold OP is entitled to 1/3rd share of the proceeds after the mortgage and other expenses are paid, mum has SOLD that 1/3rd share in order to clear her debts & start a business. We don't know the circumstances behind OP taking out the mortgage, possibly mum had got into such a financial mess that she would have had to sell the house to clear her debts if OP hadn't stepped in? The £50K handed over to mum wasn't a gift!

A few of you think that OP should walk away with nothing, however, if YOU owned a 1/3rd share in a property - would you? I doubt it!!

No what were saying is she took a 70k loan out spent 50k on the house and when it sells that will be paid off, In the meantime the money she has been spending on the mortgage has in fact been paying the 20k off of the mortgage that she "used for debts" not the house. She should rightly walk away with nothing. Clear the mortgage, lived rent free while paying off 20k worth of debt that she secured against her mothersh ouse. If anything you could say shes owed 3.333k if the house has gone up in value 10k in the last 10 years. Meanwhile shes basically living rent free for 10 years.