3 partner Mortgage issue

Redfrag

Hi all,


about 10 years in to a 20 year repayment across 3 partners (Me, Mother and Brother)


Brother decided to stop paying out off the blue 2 years ago approx (not 100% certain why as he stopped talking to us). so we adjusted our payments and started communicating via solicitors and came to an agreement for a pay off figure to buy him out.


So we started re-mortgage paper work keeping him informed through out and come Nov 18 we had a Mortgage agreement, suddenly out off the blue again he decided that he's entitle to more and the valuation we got from the Re-mortgage company is a lie and he want's it Valued so got a value in.


He now claims its worth a 1/3 more than the re-mort valuation says but wont supply a copy of his valuation and has now decided to set us a dead line to accept his new pay off figure and is threatening with legal fees to take it to court to claim his share.


Sorry for the details but I'd really like to know where I stand considering all this is recorded via the solicitors and he hasn't been paying for nearly 2 years and is the one causing all the grief.


T.I.A

Redfrag

Just to add to this,


I have a partner and 2 children that live in the house with my parents and would rather not sell the place one because of the upheaval and two there is 3 business run on the property so relocating the stock is almost impossible without bankrupting us all.

financegeek

without knowing your brother, it's difficult to know how to proceed.

If it were a relation of mine i'd call their bluff and tell them to take it to court, as the first thing the court is going to want to see is a copy of the valuation report to evidence the property value.

based on the fact he won't let you see it, i'd be hugely surprised if it was anywhere close to the figure your brother is suggesting. sounds like threatening court action is his final attempt to extort more money out of you.

unfortunately even if you call his bluff and it doesn't go to court, there's little you can do if he won't accept your current offer.

is it worth paying a higher amount just to be rid of him? as if house prices rise you may end up paying more in the long run if he continues to own a 1/3 share of the property.

whatever happens i hope it works out for you, it can't be a nice position to be in x

YBR

Can you try the counter argument that he is only due the 1/3 proportion of the property value when he walked out and stopped paying. Since then he hasn't been contributing, so actually the proportion he is due has been decreasing.
Therefore the offer on the table ought to be 25% or 30% of the 2016 value (I assume that is less).
Thus he should take your generous offer now or it may be withdrawn.

Perhaps that will give your brother something to compare with.