Bank telling us I can't live in house after selling out to co-owners

Sheveko

I bought a house with two others a few years back, and we signed a Declaration of Trust.

I'm about to sell my share of the house to the other two.

As part of this transition we were planning for me to stay living in the house for a few months after completion while I find another place to live.

However Nationwide has been advising the other two that I would be unable to stay in the house after completion due to rules in the Trust of Land and Appointment of Trustees Act 1996. But they couldn't point us to the relevant section.

Does that sound right?

kingstreet

I don't know about the act being quoted, but yes, many lenders will expect you to move out in the circumstances described if the remaining parties require a mortgage.

Tigsteroonie

It's to do with gaining beneficial interest by staying but no direct interest due to not contributing to the mortgage. If you want to google, it's generally known as ToLATA and comes up in divorces!

I wonder if the matter might be resolved by moving out for a night, and then returning under a formal Lodger arrangement?