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Separation and buying people out of a house

So my wife and her mother had an idea to buy a house together and all love in it. Myself and wife bought a house with her mam and dad and live in it with them and out children. They pay half the mortgage and we pay the other half.

My wife's mother and father have now separated and he wants his portion of the property. Rather than move he is to be bought out. My mother in law states myself and wife need to contribute financially to buying him out, but I feel it's down to her as he hasn't been paying towards my half of the mortgage, but hers and feel like I would be out of pocket. And can't see how it's down to me to contribute towards buying him out as myself and wife pay 50% for our side of the monthly mortgage and they paid 50% for there side.

What is the correct thing to do, for the mother in law to pay him off from her half or myself and wife to contribute aswell along with her mam.

Wish I had never let me talk me into it, for the sake of a larger house etc 
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Comments

  • moneysaver1978
    moneysaver1978 Posts: 324
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    What does the contract say? The contract should specify this sort of detail
  • RAS
    RAS Posts: 32,453
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    Do you own the house as a joint tenancy, or tenants in common. If the latter, what does your deed of trust say about the shares?

    The person who has not made a mistake, has made nothing
  • gwynlas
    gwynlas Posts: 1,620
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    Did any of you raise the issues that might arise in the future when purchasing the house ie  death of any of you or potential seperation/divorce? Does your wife have any siblings or will she be sole beneficiary on parents death? Can your MIL afford to buy out her husband on her income? It might be that the house will need to be sold otherwise and both couples go their own ways. Financially it might be that the value of a larger house as increased more than what you could have bought previously so MIL thinks that you should contribute.
  • Bigphil1474
    Bigphil1474 Posts: 2,263
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    OP, sounds a bit simpler to me - do you want to each own a third of the property (You, Wife, MIL), or does MIL want to retain half and you and the wife retain half. Sounds like MIL is suggesting the 3 of you half a third of the house each, hence wanting you to contribute, whereas you seem to be viewing you and your wife as one party and MIL as the other party, each owning half. If MIL wants you to contribute but she retains half the property, then she's taking the mickey.
  • theartfullodger
    theartfullodger Posts: 14,366
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    The prices that will be agreed are whatever the various parties agree to.  Could be £1,000,000 or £1.23.  There are no rules for setting them. Many have views on what is "fair" but that's not enforeceable.
  • Hoenir
    Hoenir Posts: 1,186
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    Can your MIL afford to buy him out? 
  • Mouaty
    Mouaty Posts: 3
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    Yes the ML can afford to buy him out, especially as when he went he got a huge loan and paid all her debts.

    So in the agreement, myself and wife are one party with half the property and MIL & FIL were one party with other half. Now it is myself and wife as one party and MIL as other, and she still wants to retain a full half of the property when he is bought out and we contribute 
  • lincroft1710
    lincroft1710 Posts: 17,452
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    edited 26 January at 3:08PM
    If the ownership would now have been split 3 ways with each party having a third share then  I think you and your wife should have contributed to buying out MIL's ex, as the value of your share of the property will have increased. But as your MIL wants her ex's share for herself then I think it is for her to finance the buyout
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • sheramber
    sheramber Posts: 18,618
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    Presumably, there is one mortgage on the house.

    Whose name/s are on the mortgage?

    Is it all 4 names?

  • Mouaty
    Mouaty Posts: 3
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    All 4 names are on the mortgage.

    MIL wants to take Ex-FIL share for herself but for myself and wife to contribute to buying him out. And our share of the property to remain the same as now.

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