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

Linton

xylophone said:

One detail: it would appear that only 4 names can be listed on the deeds of a house.  It would seem you will have 5 so you may need to get legal advice.

The OP and wife are buying out the MIL.

Therefore the owners will be the OP (30%) his wife (35%) , the aunt (30%) and (when he comes of age) aunt's son (5%).

MIL keeps 5%.

xylophone

MIL keeps 5%.

Thanks - I had missed that.

Which gives 30/30/30/5/5 (once the son comes of age) - I suppose that the aunt might continue to hold the share in Trust for her son if the son were content with this?

There is still the question of MIL/aunt/son not being parties to the mortgage?

paddyz

I just see one way this can actually work is for you to buy the aunt and her child out of the house, But I’m guessing she will have no desire for that so will stay put.
Nobody would put on a wing on their home for other family members if it’s of no benefit to them

you don’t want to live with them so don’t attempt this it will cause you major grief.

HampshireH

This sounds very very messy.

Also the poor cousin has been shafted with a 5% interest in a property that means he won't ever receive FTB status/incentives.

He too will see an increase in value and most likely want out at some point.

How would you afford to buy out the aunt if you can't afford the proposed purchase and enhancements without this mortgage and your MIL savings.

I am struggling with the mortgage part.

Do you have a high amount of equity in your current property? I just can't wrap my head around where this money is coming from.

diggingdude

I'm wondering if this is a real story

kazwookie

Sounds like an absolute nightmare, sell the wife's share, and use the money to buy another property of your own.

isplumm

xylophone

sell the wife's share,

Presumably the cousin (not yet of age) is not in a position to buy it - the aunt may be and also the MIL but it seems unlikely that they are interested?