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Tennant in Common Dispute without Deed of Trust
worriedmum85
Posts: 1 Newbie
Can anyone please offer any advice or experience.
I am separated from my ex husband. We lived together in an annexed building next to my parents house during our marriage. The house and annexed building was purchased in its entirety by my parents in 2005. In 2006, I moved into the annexed building having used £80 capital of my own money to convert and renovate the building. At this point my parents and I were named as tenants in common on the title absolute at 1/3 share owners.
I met my husband in 2007 and he moved in with me later that year. In 2009 I took out a mortgage in my and my parents name to undertake further renovations and extension work, as my husband and I had two children and needed more space. My parents kindly allowed us to extend into their home, giving us some of their lesser used rooms. The mortgage was interest only and in our three names only. my husband was not on the deed.
In 2015, my husband and I wanted enter into a repayment mortgage and also needed to release equity in my share of the property to pay back a loan my parents has given us.
My husband was added to the deeds and we took on the additional borrowing in 4 names on the mortgage. The deeds however remained as Tenants in Common. At this time also my parents made a final capital repayment on their original mortgage with our original lender (with which I had held the interest only mortgage).
In March 2018, my husband and I renewed our mortgage with another lender and again released yet more equity. My parents are named as co owners on the mortgage papers but their income wasn't taken into account as they are both into their 70's with only pension income & no life insurance policies in place.
I separated form my husband at the end of the year, and now as we start divorce proceedings, he is intended to calculate his financial settlement based on him owning a 25% share of the entire property. He never put a penny into the purchase of the property, or initial conversion costs, has never paid into it's up keep / maintenance, and was only added on the deeds in 2015.
Unfortunately, at the time he was added it appears we were not served properly by our conveyancing solicitors ,and were not advised of the potential ramifications, / conflicts of interest, so a formal deed of trust was never drawn up. The intention was always that my husband by entering into the deed would take up 50% ownership of my 1/3 of the property., being the 'marital home'.
Has anyone got any advice on how to proceed? Can my ex convince a judge that he is due a 25% share of my parents house? Will the purchase price etc be taken into account it this is put before a judge?
TIA
I am separated from my ex husband. We lived together in an annexed building next to my parents house during our marriage. The house and annexed building was purchased in its entirety by my parents in 2005. In 2006, I moved into the annexed building having used £80 capital of my own money to convert and renovate the building. At this point my parents and I were named as tenants in common on the title absolute at 1/3 share owners.
I met my husband in 2007 and he moved in with me later that year. In 2009 I took out a mortgage in my and my parents name to undertake further renovations and extension work, as my husband and I had two children and needed more space. My parents kindly allowed us to extend into their home, giving us some of their lesser used rooms. The mortgage was interest only and in our three names only. my husband was not on the deed.
In 2015, my husband and I wanted enter into a repayment mortgage and also needed to release equity in my share of the property to pay back a loan my parents has given us.
My husband was added to the deeds and we took on the additional borrowing in 4 names on the mortgage. The deeds however remained as Tenants in Common. At this time also my parents made a final capital repayment on their original mortgage with our original lender (with which I had held the interest only mortgage).
In March 2018, my husband and I renewed our mortgage with another lender and again released yet more equity. My parents are named as co owners on the mortgage papers but their income wasn't taken into account as they are both into their 70's with only pension income & no life insurance policies in place.
I separated form my husband at the end of the year, and now as we start divorce proceedings, he is intended to calculate his financial settlement based on him owning a 25% share of the entire property. He never put a penny into the purchase of the property, or initial conversion costs, has never paid into it's up keep / maintenance, and was only added on the deeds in 2015.
Unfortunately, at the time he was added it appears we were not served properly by our conveyancing solicitors ,and were not advised of the potential ramifications, / conflicts of interest, so a formal deed of trust was never drawn up. The intention was always that my husband by entering into the deed would take up 50% ownership of my 1/3 of the property., being the 'marital home'.
Has anyone got any advice on how to proceed? Can my ex convince a judge that he is due a 25% share of my parents house? Will the purchase price etc be taken into account it this is put before a judge?
TIA
0
Comments
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Just to clarify - we're talking about the difference between 16.6% (which you're agreed he's due) and the 25% he's claiming, rather than between 0% and 25%?worriedmum85 wrote: »The intention was always that my husband by entering into the deed would take up 50% ownership of my 1/3 of the property., being the 'marital home'.
What's the value of the property?0 -
How are you treating the mortgage? If you had a deed of trust then this would say how the net proceeds of the house sale were to be divided.
Under your interpretation the DOT might say the your parents each received 33.3% of the gross sale price and you and you husband split whats left over after the mortgage 50/50.
How is you husband proposing the mortgage should be treated?0 -
As you are married, divorce law has a wide ability to overrule property law.
Even if you had a deed of trust, a divorce court could allocate assets in a different way to what was stated on the deed of trust.
The starting position is that assets are split 50/50, unless there are good reasons to the contrary.
The court would consider factors such as whether there are any children; how long the marriage lasted; how much money each partner put into the marriage and so on.
It is probably worth getting a bit of proper legal advice.0 -
Only that part owned by the divorcing parties but in this case the husband is claiming the parents only own 50% rather than 66.7%steampowered wrote: »As you are married, divorce law has a wide ability to overrule property law.
Even if you had a deed of trust, a divorce court could allocate assets in a different way to what was stated on the deed of trust.
The starting position is that assets are split 50/50, unless there are good reasons to the contrary.
The court would consider factors such as whether there are any children; how long the marriage lasted; how much money each partner put into the marriage and so on.
It is probably worth getting a bit of proper legal advice.0 -
It's very hard to argue that he's wrong.Only that part owned by the divorcing parties but in this case the husband is claiming the parents only own 50% rather than 66.7%
2005-2007 - Mother + Father, tenants in common with no defined split
2007-2015 - Mother + Father + OP, tenants in common with no defined split
2015-date - Mother + Father + OP + soon-to-be-ex-husband, tenants in common with no defined split
That there was, apparently, an intention to change that to a 2:2:1:1 split is one thing. If that never got registered, then surely the assumption can only be that the undefined split meant even shares, so dilution from 33.3% each to 25% each in 2015, same as it's agreed to have meant dilution from 50% to 33.3% in 2007?0 -
^^^^^^^^^^
along with that you have the distinct lack of a paper trail of who owned and paid any of the debt(legally joint and several).The intention was always that my husband by entering into the deed would take up 50% ownership of my 1/3 of the property., being the 'marital home'.
Is this documented anywhere?0
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