I inherited half a house with my brother who wants to mortgage it

mr_stripey

I had a similar situation.

I inherited a share of my dad's house. I wanted to live there so I had to "buy out" my two siblings

So, working in round numbers - the property was worth £ 150,000

So each sibling (including me)had a £ 50,000 "share" of the property

Thus, I needed to borrow £ 100,000 in the form of a mortgage to "buy" the house.

On completion, each of my siblings received £ 50,000 each and I now own the house with £ 100,000 mortgage to pay back.

So you brother should be working on something like this arrangement.

popcornguess

Caz3121 said:

popcornguess said:

my brother  wants to mortgage the full house in his name and pay it back himself without me. 

does that mean he will be giving you half the value and your name will come off the deeds in return?

No i dont get anything, his argument is he wants it to improve the house, and if he sells later i get half the money.

mr_stripey

popcornguess said:

HampshireH said:

He needs to buy you out otherwise you effectively gift him your inheritance.

Can you explain why, because i said that to my family and they asked why it means that and i didnt have an aswer. 

For the avoidance of doubt, and I'm assuming here that you and your brother are the only beneficiaries?

So you need to get the house valued and agree a price. Your share is half of the house value, and upon completion he will own the house (and the mortgage) and you will get half the house value in money.

Sea_Shell

Sounds like he wants his cake and eat it!   Be careful or you're likely to get stitched up.

Have you checked land registry to see if ownership is as you believe it too be.  Ie all sorted properly after inheriting?

50/50, both names, tenants in common.

maisie_cat

My recommendation would be to get a separate solicitor. If nothing else to ensure that anything you sign is what you think it is. You should also sign up to the land registry property alert scheme so that you are akerted to any changes.

lisyloo

Can you suggest he remortgaged, buys your half - he would then own the entire house and he can use the rest for whatever he wants.

Keep_pedalling

popcornguess said:

Caz3121 said:

popcornguess said:

my brother  wants to mortgage the full house in his name and pay it back himself without me. 

does that mean he will be giving you half the value and your name will come off the deeds in return?

No i dont get anything, his argument is he wants it to improve the house, and if he sells later i get half the money.

My reply to that would be that you are happy for him to get a mortgage as long as it is big enough to buy your share other wise he can go forth and multiply. Your brother is a sponger and is already having 100% benefit of your inheritance please stand up for yourself and don’t let this happen.  

 

Do you own your own home? 

Flugelhorn

popcornguess said:

Caz3121 said:

popcornguess said:

my brother  wants to mortgage the full house in his name and pay it back himself without me. 

does that mean he will be giving you half the value and your name will come off the deeds in return?

No i dont get anything, his argument is he wants it to improve the house, and if he sells later i get half the money.

He will almost certainly have to be the sole name on the LR if he mortgages it - that would mean you have no rights over the place and if he later sold it he wouldn't have to give you anything. 

Only thing is to get him to mortgage and give you 50% of the value of the place now.

MWT

popcornguess said:

Caz3121 said:

popcornguess said:

my brother  wants to mortgage the full house in his name and pay it back himself without me. 

does that mean he will be giving you half the value and your name will come off the deeds in return?

No i dont get anything, his argument is he wants it to improve the house, and if he sells later i get half the money.

... and when that time comes he will probably argue that he needs all the money to enable him to buy a larger property for his family and he'll give you a share in that property instead....

All of this means that you get no benefit from your inheritance, potentially until he dies... and even then you may be left with an unsaleable part share in the property as he will have left his share to his partner/children and you would not want to make them homeless...

This needs to stop before it gets started.

The only way you are going to see the benefit of your inheritance is if he buys your share now. Franky he should never have moved in with his family without this being resolved...

Anything else is just going to leave you with no benefit at all until some vague point in the future, if ever...

silvercar

Your paths are not aligned. He wants to borrow money against the house and use that money to improve it. At which point he will argue that the increase in value is on his share.

Say the house is worth £200k, so you each own £100k of house value. He wants to borrow say £50k on which he promises to pay the mortgage. He spends the extra £50k on increasing the house value to £275k. So now we have a house worth £275 with a mortgage of £50k. 

Say it is now sold. If the house is sold at £275k, the mortgage repaid, that leaves £225k. Are you both getting £112.5k? Or is he arguing that as he has made the mortgage repayments, he should have more. Or would he want to give you your original £100k and he keep £125k?

Or say you want to sell up and he agrees to buy you out. Would he offer you half the current value or your original £100k? Maybe he needs to re-mortgage to do so, so he would need to increase the mortgage to £162.50k to give you £112.5k. Can he get such a mortgage?