Staving off a potential family dispute

flammable999

moneyistooshorttomention wrote: »

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.

Yes I may have confused myself there.

flammable999

moneyistooshorttomention wrote: »

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.

That is the worst case scenario as I maybe have 3k in savings now and thats all going to go on baby stuff. Even with a joint income, I think it would take a while to hit 50% of the equity (and inflation). Maybe a few decades!

elsien

flammable999 wrote: »

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

Putting him back in the deeds (even if doable which is unlikely as he'd have to go back on the mortgage as well) sounds like a really bad idea. It's complicated enough now - you really don't want two people with such differing views having joint control of such a large asset. Plus if dad then needs care, his share might have to pay for that leaving you potentially needing to sell up. In which case there wouldn't be an anything to pass on to your sister anyway. You really don't want to go there.

flammable999

elsien wrote: »

Putting him back in the deeds (even if doable which is unlikely as he'd have to go back on the mortgage as well) sounds like a really bad idea. It's complicated enough now - you really don't want to people with such differing views having joint control of such a large asset. Plus if dad then needs care, his share would have to pay for that leaving you potentially needing to sell up. You really don't want to go there.

Agreed. Not that I would ever stick him or either of them in a home but any kind of care costs money. I understand he wants to now look out for his daughter but I am hurt its at the detriment to his other child especially with me ensuring the house stays with us, all of us for the last ten years.

I am also hurt that my sister has brought this issue up now of all times. Even if it was six months down the line would have been better. My wife is pregnant and is now beside herself with worry. Am trying to tell her not to worry but its easier said than done. Even if sis has no legal rights, its still a potentially rubbish atmoshphere. I would like to think there are similar things happening in other households because I feel rather embarassed about it all

elsien

Pop over to the death/probate part of the forum and you'll see that where there's an inheritance there's often people fighting over it. It's not just your family.

mrschaucer

flammable999 wrote: »

I am also hurt that my sister has brought this issue up now of all times. Even if it was six months down the line would have been better. My wife is pregnant and is now beside herself with worry. Am trying to tell her not to worry but its easier said than done. Even if sis has no legal rights, its still a potentially rubbish atmoshphere. I would like to think there are similar things happening in other households because I feel rather embarassed about it all

This is all just poisonous. Sort it out once and for all by remortgaging as soon as possible to a repayment mortgage and paying off your sister whatever you think is "fair" - half the gifted deposit, half the gifted deposit increased by inflation, half the gifted deposit increased by whatever she would have got in a savings account, etc etc, whatever you decide. The house is then fully and unequivically yours, no-one can complain in years to come, and your parents should be grateful that they have a home for life where someone else is paying the mortgage and their children have been treated equally. Do think about your poor wife in all this, too. It must be awful for her to have all this hanging over your heads when she's pregnant.

ScorpiondeRooftrouser

Don't listen to anyone, to be honest. The house is yours. The only moral judgement which matters is yours. Do whatever you decide to do.

Your sister will be angry whatever happens, I can assure you of that. She wants "half the house" despite not having paid anything in and will be furious and feel cheated if she doesn't get it.

That said I personally disagree strongly with the poster above and certainly don't think you should be giving your sister anything when you remortgage. Anything could happen between now and the death of your parents. Worry about her "inheritance" based on the situation as it is then. The value of the house could plummet.

betsie

Another way to look at it is what we!!!8217;re your parents going to do if you hadn!!!8217;t taken on the mortgage. Would they have sold the house and used up all the equity to pay rent on something else? In which case there would be nothing to leave her. Maybe you could say you are remortgaging the house and can secure an extra £x which you will give her now to compensate her. The other thing to consider is if your parents had kept the house and mortgage in their names at some point they may have needed to go into a nursing home which would use all the money up. There are so many if buts and maybes with this could you offer her £25k now to put it too rest. I really don!!!8217;t see why she should get the same as you as she had a choice and said no at the time and left you to take on your parents and their mortgage. You have all the responsibility.

Mojisola

flammable999 wrote: »

No she does not live there. She has her own place with her own mortgage right now.

flammable999 wrote: »

It was a new mortgage with a gifted deposit. It is me and the parents now, oh and my wife.

Ideally, I want to give her nothing, but to keep the peace, I would give her 50% of the gifted equity at the time ten years ago

So she didn't want to help your parents out when they needed it, now has her own home and is willing to put your home at risk while your wife is expecting your first child? Nice.

I would be very wary of giving her anything now.

If your parents needed care, they may be assessed as still having the amount that they gifted you and you would need to find the money to pay for their care.

DigForVictory

Your beloved wife is a tenant in common?
If not, why not?

If you do not currently have a Will, write one, making it very clear every tuppence goes to the missus & child but that in acknowledgement of your sister "missing out" on the family home, she gets a ten pound note or ten lb of garden soil couriered to her present address in full & final settlement of her charming timing. Her choice (& pick a solid pal who happens to play rugby & is an easy to intimidate as the rock of Gibraltar as executor.)

Dad may have after-the-fact doubts, but he's about to become a grandfather. Eyes front, focus on your future & while it would be nice to have an Aunt who is friendly, she's not worth stress or money to achieve that.