Advice please

Prongle

I hope this is the right place for my post...
Basically when me and my (then) boyfriend got a house together, it was bought by my mum and dad. They put down a deposit for us then I payed them a monthly amount which covered the mortgage fees but the house was always kept in their name. After a few years my dad unfortunately passed away so the house went solely over into my mum’s name but I used a chunk of the inheritance I’d received from my dad to pay off the mortgage.
Fast forward a few more years and me and my (then) boyfriend got married.
Fast forward a few more years and my (now) husband left me for another woman.
My question is, when we do eventually start the divorce process, where will I stand with my house? It is still in my mum’s name, my husband never contributed any payments towards the mortgage so would he be entitled to claim half of it?

kinger101

I'd suggest you both (you and mother) meet with a solicitor and accountant.

Your mother has been receiving rent on a property she owns. There are a number of complexities to this relating to ownership and taxation, which should ideally have been sorted before the house purchase.

Simby

The op said she had paid off the mortgage so there is no lender to be upset nor do they need a BTL, I also don’t think she is giving her mum anything for the house on a monthly basis so no money to declare to HMRC as income for her mother.

Op I would get the divorce sorted, your husband has no claim as it’s your mums house.

However there are potentially risks unrelated to the divorce. If your mother had to go into care then the house is an asset and could have to sold to pay for care, if she transfers it to you that could be deprivation of capital if she went into care.

Seek expert advise on the house once the divorce is complete.

Prongle

Thanks for your comments. It was most definitely given as a gift. My mother has never received any payments from me at all. Before my dad passed away, I had a direct debit to my dad which covered the monthly mortgage payments and once he passed by away I payed the mortgage off completely. My mum is only involved as far as her name being in the deeds.
I will take your advice and try and meet with a solicitor to discuss things properly.
Thanks again for for help.

Prongle

Simby, yes this is definitely something I need to consider, thank you.

getmore4less

Same applied to your dad if you were paying him and he was not declaring it.


Neither monthly payments or the lump sum to pay off the mortgage can be outright gifts as it clearly tied to you living in the property.

As you paid off the mortgage when your dad died you probably have a beneficial interest in that share of the property and your hubby can go after that.

Slithery

Prongle wrote: »

...then I payed them a monthly amount which covered the mortgage fees...

My mother has never received any payments from me at all.

These two statements contradict each other. Which one is true?

Simby

I read it as the op had a direct debit to her fathers account at one point , she stated she never paid her mother anything.

Both statements make sense as true?

G_M

But rent was being paid (to father) so father's Estate may owe HMRC income tax. If the Estate has been wound up, the the Executer of the Estate could be liable.


However the likelihood of HMRC knowing/doing anything seems low!

Prongle

Yes sorry, when I said I made monthly payments to ‘them’ it was only ever my dad who dealt with the mortgage payments, but the house was in both their names.

AnotherJoe

Prongle wrote: »

Thanks for your comments. It was most definitely given as a gift. My mother has never received any payments from me at all. Before my dad passed away, I had a direct debit to my dad which covered the monthly mortgage payments and once he passed by away I payed the mortgage off completely. My mum is only involved as far as her name being in the deeds.
I will take your advice and try and meet with a solicitor to discuss things properly.
Thanks again for for help.

If its not in your name, it never was actually gifted to you. They just let you live in a house they owned which you paid for in part. What a mess.

As said there are various tax issues that need to be sorted. Or not, it may be more tax efficient to inherit it than be gifted it.


p.s. on the upside as its your mothers house now it probably suits you to keep it like that. Did your ex contribute to these payments you made to your dad? He may have a tenuous claim to some % of it in that case but nothing like as clear cut as if you jointly owner it or even you owned it but he made some payments to you. IANAL, see what your solicitor says but i certainly wouldnt be rushing to transfer it into your name!