Staving off a potential family dispute

Aylesbury_Duck

Savvy_Sue wrote: »

Hang on, are you saying you have an interest only mortgage? What's your plan for settling that at the end of term? I think that might alter advice on how to settle this.

It is an IO mortgage. OP wants to move to a repayment mortgage in the future.

Sea_Shell

But won't that equate to an extra c.£500 ppm in the mortgage, to repay the capital of £155k over 25 years!

Can OP afford that?

HampshireH

I don't understand your comment about your dad and documentation for his share.

Are the deeds to this house solely on your name. If a search was done does the land registry state you are the one and only owner.

Please clarify and then clarify with your dad as he is either a very confused man or your not the sole owner.

getmore4less

There is a Gift with reservation in all this.

Also what was signed at the time will determine the beneficial ownership, land reg only records legal ownership.

getmore4less

Worst case using equitable shares where the gifted deposit was really only 1/2 each, the the sis would be due that(as a % of value at the time) on current value adjusted for costs/improvements.

Mortgage interest plays no part of equitable shares.

Problem is it had been documented like that you would not have got a mortgage.

If the want to wind back the clock so she gets more then she will need to cough up what was needed to buy that share (mortgage interest using a current value calculatio)

flammable999

Savvy_Sue wrote: »

Hang on, are you saying you have an interest only mortgage? What's your plan for settling that at the end of term? I think that might alter advice on how to settle this.

Before this came about, I was always going to move over from an intrest only to repayment within the next year or so. At the time, I had no choice with debt, defaults and what have you. My record is a lot cleaner now and dual income too.

flammable999

HampshireH wrote: »

I don't understand your comment about your dad and documentation for his share.

Are the deeds to this house solely on your name. If a search was done does the land registry state you are the one and only owner.

Please clarify and then clarify with your dad as he is either a very confused man or your not the sole owner.

Makes two of us! I double-checked land reg paperwork this morning, its definitely only me who is the sole owner. I think he wants to whack himself back on there so legally he can pass his share down to daughter. I have read about transfer of ownerships and co-ownerships but my limited understanding would suggest that co-owners took co-responsibility of any outstanding mortgage

moneyistooshorttomention

flammable999 wrote: »

The only way I could do that is by taking out a larger mortgage when it comes to re-mortgaging. I was planning to do this next year anyway in order to finally move from a sub-prime to a reputable lender and in order to move from IO to repayment mortgage, especially now that I am married so would be able to jjointly apply with a dual income.

Or I could leave it in a will. I don't see how my father can leave it in his will unless he is on the paperwork and to put him on the paperwork opens up a can of worms. Very confusing.

It occured to me also, that if my sister got anything more than my dads original equity, then all I would have received from my dad is debt! (the lender techincally has the home after all). So if they want to play the whole leaving things to children card, then it appears I will have bee shafted,

But if you left your sister her share in a Will she wouldnt have it for quite some time (probably too late to be of any assistance to her).

I don't think any of us are saying she should have more than (the equivalent of) your half share???? So - with the house having had equity in it to start with - I'm very puzzled where the idea of "debt" comes from.

flammable999

Sea_Shell wrote: »

But won't that equate to an extra c.£500 ppm in the mortgage, to repay the capital of £155k over 25 years!

Can OP afford that?

I am currently paying £350pm as it is IO and linked to Bank Rate. I used the morgtgage calculator to see what I could be paying for a fixed repayment and it said about £550-600pm . Another 45k would whack at the most another £150pm maybe?

moneyistooshorttomention

flammable999 wrote: »

Before this came about, I was always going to move over from an intrest only to repayment within the next year or so. At the time, I had no choice with debt, defaults and what have you. My record is a lot cleaner now and dual income too.

I guess your worst case analysis is to stick with an interest-free mortgage only for the time being and pay your sister 50% of the equity first and then swop the mortgage to repayment in years to come.