Staving off a potential family dispute

flammable999

I have a potential situation on my hands and was wondering if anyone had any advise as I get lost in a minefield of potential documents and pitfalls.

Ten years ago, I took on the mortgage from my father via him gifting the deposit to me, i.e whatever equity was still in the property. They signed paperwork saying they had no further interest in the property. However, my sister who was over 18 at the time, did not sign anything. She just verbally said she wanted nothing to do with it.

Fast forward ten years and my sister is suddenly miffed that my parents did not provide her with any security. Now my father wants ownership to be joint again, so should they die, their share goes to her. The thing is, even if we did that, they are in no position to pay their share of the mortgage. In theory, I don't mind carrying on to pay the mortgage but should something happen to my father, then I don't see why my sister should get any more than 50% of the equity my father my originally put in prior to gifting the property to me. I don't see why she should get 50% of what the house was valued at when I took it on, let alone what it is worth now. We are all scared that because my sister did not sign anything ten years ago, she has a case to get me turfed out.

There is still a mortgage on the property. Anyone got an ideas if there is a way to accomodate all of the above and at same time ensure she only gets 50% of my fathers original equity?

betsie

Hi
I!!!8217;m no legal expert but I can!!!8217;t see how your sister has any rights if the property was never hers or she never owned any part of it If your parents still owned it and died they could have a will leaving it to the local cats home.
You took on the mortgage and presumably have allowed your parents to live in the family home rent free with no worries about money. I presume she has made no contributions. I wouldn!!!8217;t give her a thing. She should be grateful that you support your parents financially. This kind of thing is so common, children believing they are entitled to something - I would just ignore her but don!!!8217;t expect to be friends when your parents die. You would be surprised how many siblings fall out over money when parents die. It!!!8217;s normally the ones who did the least who expect the most.

Mojisola

flammable999 wrote: »

Ten years ago, I took on the mortgage from my father via him gifting the deposit to me, i.e whatever equity was still in the property.

They signed paperwork saying they had no further interest in the property.

However, my sister who was over 18 at the time, did not sign anything. She just verbally said she wanted nothing to do with it.

We are all scared that because my sister did not sign anything ten years ago, she has a case to get me turfed out.

She had no reason to sign anything - she wasn't involved in the transaction. She can't claim an entitlement now.

Detroit

When you say you took on the mortgage, do you mean you purchased the house from your father for the amount he had outstanding on his mortgage, with a mortgage in your own name?

Are you the sole owner now, or a joint owner with your father?

If you solely own the property, unfortunately for your sister, it is yours to do as you please with, and neither she nor your father have a say.

Your father will have gifted his equity to one child, and gifted nothing to the other, and if he now (perhaps correctly) feels this was unfair, that's unfortunate, for your sister at least!

If the house is yours it's really down to your goodwill whether you give your sister anything, and if so, how much this is.

If you are joint owners with your father, or somehow he still owns the house while you have the mortgage, that's a different matter.

DigForVictory

Do you want a legally watertight decision or a harmonious family? As it looks like you will have to choose & to be honest, the legal version will be cheaper, faster & more enduring.

Though it may upset your parents to see their daughter solidly fenced out, you could look at getting the legal side nailed down & then trying to sort out enough to buy your sister's acquiescence in the short term.

Longer term she may try to leech off you after their death "since you got the house", but that spat can wait.

flammable999

Mojisola wrote: »

She had no reason to sign anything - she wasn't involved in the transaction. She can't claim an entitlement now.

I think it was something to do with those who are over 18 and interested parties and on electoral roll at said property , who had to give their consent. I could be wrong. Like when my dad re-mortgaged, me and my sister had to sign something. I can't remmber what the document was. My fault for being naive.

flammable999

Detroit wrote: »

When you say you took on the mortgage, do you mean you purchased the house from your father for the amount he had outstanding on his mortgage, with a mortgage in your own name?

Are you the sole owner now, or a joint owner with your father?

If you solely own the property, unfortunately for your sister, it is yours to do as you please with, and neither she nor your father have a say.

Your father will have gifted his equity to one child, and gifted nothing to the other, and if he now (perhaps correctly) feels this was unfair, that's unfortunate, for your sister at least!

If the house is yours it's really down to your goodwill whether you give your sister anything, and if so, how much this is.

If you are joint owners with your father, or somehow he still owns the house while you have the mortgage, that's a different matter.

Apologies for not being clearer. I took on the mortgage from father and ever since, I am the sole owner. I agree with what you are saying though. Just worried that she might have a claim if I have no written confirmation from her at the time my dad transfered mortgage to me, that she didnt want anything to do with it.

flammable999

betsie wrote: »

Hi
I!!!8217;m no legal expert but I can!!!8217;t see how your sister has any rights if the property was never hers or she never owned any part of it If your parents still owned it and died they could have a will leaving it to the local cats home.
You took on the mortgage and presumably have allowed your parents to live in the family home rent free with no worries about money. I presume she has made no contributions. I wouldn!!!8217;t give her a thing. She should be grateful that you support your parents financially. This kind of thing is so common, children believing they are entitled to something - I would just ignore her but don!!!8217;t expect to be friends when your parents die. You would be surprised how many siblings fall out over money when parents die. It!!!8217;s normally the ones who did the least who expect the most.

sums her up to a T unfortunately

ScorpiondeRooftrouser

Well legally it's yours. She's never had any claim to ownership over any part of it.

It's entirely up to you what you do with it and what she gets. Nobody can legally enforce anything. If you want to give her anything when your parents die that is your decision.

Your only potential issue might be, if she lives there now, getting her out if your parents die. Does she live there?

Of course none of this will stave off a potential family dispute.

diggingdude

I would have thought that if you are the sole owner on the deeds then she can cry and cry but she isn't entitled to anything. You could offer her to totally buy you out? That might keep her quiet

AnotherJoe

I dont think your dad could have "transferred" the mortgage to you.
You must have taken a new mortgage out?

Who lives in this house now? Just parents? Or you and sister? Or one of you?
And when you say father wants it to be joint owners "again" were you initially a part owner before he sold you his share?

The second part of this is what do you want to happen? Do you want to give your sister 50% of the gifted equity at the time of ten years ago, or a proportion of that, or none?