Multiple Tenants in Common, unequal shared, renovation and building costs

[Deleted User]

Well I have no idea what you've been reading online but I know that when unmarried co-habiting couples separate the sale of jointly owned property can be forced through the court even if there are children involved. 

You won't even be a separating couple, just extended family living together so I see no reason why the aunt couldn't force the sale if she wanted to and if you were to obstruct it then the legal costs could come out your share of the equity. 

r0wly86

Lover_of_Lycra said:

Hang on a minute, mortgage? Is that going to the source of your £200k? 

we have a small mortgage on a shared ownership flat, when we sell that, we will buy MIL's shares minus 5%

r0wly86

Lover_of_Lycra said:

Well I have no idea what you've been reading online but I know that when unmarried co-habiting couples separate the sale of jointly owned property can be forced through the court even if there are children involved. 

You won't even be a separating couple, just extended family living together so I see no reason why the aunt couldn't force the sale if she wanted to and if you were to obstruct it then the legal costs could come out your share of the equity. 

https://vardags.com/family-law/tenants-common-orders-sale

the right for a child to live on the land is taken into account

Linton

r0wly86 said:

Lover_of_Lycra said:

Hang on a minute, mortgage? Is that going to the source of your £200k? 

we have a small mortgage on a shared ownership flat, when we sell that, we will buy MIL's shares minus 5%

When you sell the flat the mortgage will have to be be repaid.  So what is this £200/month mortgage you talk about?

[Deleted User]

r0wly86 said:

Lover_of_Lycra said:

Hang on a minute, mortgage? Is that going to the source of your £200k? 

we have a small mortgage on a shared ownership flat, when we sell that, we will buy MIL's shares minus 5%

Right, so you're going to buy MIL's share minus 5% using the proceeds of the sale of your SO flat and not a mortgage? Where is the money for the renovations coming from? I don't understand how you will own a £850k property with a tiny mortgage when there will be 2 other owners and MIL's remaining 5% to purchase. 

r0wly86

Linton said:

r0wly86 said:

Lover_of_Lycra said:

Hang on a minute, mortgage? Is that going to the source of your £200k? 

we have a small mortgage on a shared ownership flat, when we sell that, we will buy MIL's shares minus 5%

When you sell the flat the mortgage will have to be be repaid.  So what is this £200/month mortgage you talk about?

we are transferring the mortgage over, all okayed by the lender

AdrianC

I'm not surprised that the aunt is reluctant at the thought of suddenly sharing an ex-council house (so we aren't talking a substantial property) with a tripling of the number of residents, including a small baby.

OP - you'd be better off finding your own property to buy - if for no other reason than throwing £200k at an ex-council house is very unlikely to give you any kind of sensible return on that investment.

r0wly86

Lover_of_Lycra said:

r0wly86 said:

Lover_of_Lycra said:

Hang on a minute, mortgage? Is that going to the source of your £200k? 

we have a small mortgage on a shared ownership flat, when we sell that, we will buy MIL's shares minus 5%

Right, so you're going to buy MIL's share minus 5% using the proceeds of the sale of your SO flat and not a mortgage? Where is the money for the renovations coming from? I don't understand how you will own a £850k property with a tiny mortgage when there will be 2 other owners and MIL's remaining 5% to purchase. 

the mortgage i sbeing transferred over, so equity and curren mortgage will account for the purchase of the MIL shares.
The works are going to be paid out of savings and inheritence. I say £800,000 as a total value, not as our 60% share.

House is currently worth arounf £450,000, the works will add on 3 bedrooms, bigger living area, bigger and well equipped kitchen, more bathrooms. Underfloor heating, air-water air source heat pumps etc. Going on the local estate agents that would put the house as a whole at c£750-800k obviously we will own only 60% of that currently. The financial matter of the actual build work is by-the-by. The aunt, having given consent for the building work, but refusing to invest, will see her 30% share rise from £150,000 to £267,000. I am not saying she will not lpay ball at all, she may well sign something that honours the current value. I just don't know how, if she signs anything we can make leaggly enforeable so should we sell the house she won't come after the full 30%

[Deleted User]

r0wly86 said:

Linton said:

r0wly86 said:

Lover_of_Lycra said:

Hang on a minute, mortgage? Is that going to the source of your £200k? 

we have a small mortgage on a shared ownership flat, when we sell that, we will buy MIL's shares minus 5%

When you sell the flat the mortgage will have to be be repaid.  So what is this £200/month mortgage you talk about?

we are transferring the mortgage over, all okayed by the lender

I have no idea how that's even possible when there will be 3 other owners who are presumably not party to the mortgage. Is the lender aware of the ownership set up? 

[Deleted User]

r0wly86 said:

Linton said:

r0wly86 said:

Lover_of_Lycra said:

Hang on a minute, mortgage? Is that going to the source of your £200k? 

we have a small mortgage on a shared ownership flat, when we sell that, we will buy MIL's shares minus 5%

When you sell the flat the mortgage will have to be be repaid.  So what is this £200/month mortgage you talk about?

we are transferring the mortgage over, all okayed by the lender

I have no idea how that's even possible when there will be 3 other owners who are presumably not party to the mortgage. Is the lender aware of the ownership set up?