I think I am in a predicament!

misscleo

Hi everyone,

I think I am up the creek without paddle but here goes.

I struggled to get a mortgage on my own, due to being self employed and my dream house came up. My best friend offered to take out the mortgage with me as that is the only way I could get the house. The verbal agreement (witnessed) was that she would be on both the deeds and mortgage but would not make any financial contribution or have any other involvement. Aside from staying with me rent free for a year when her relationship broke down, she has had no involvement what so ever with any running costs / bills /mortgage repayments / improvements. 

A few months ago we had a major fall out over something trivial, but despite my efforts our friendship is not salvageable.

To cut a long story short she now wants the value of half of my house. I can't afford that so I am worried she is going to sell the house, without my agreement and she has threatened to take me to court for any legal costs incurred. 

I am waiting to speak to a solicitor. But I am terrified I will be made homeless and I will lose everything. I have paid 60k on the house so far. She has paid 0. The value of the house has increased by about 30k since purchased. I have worked so hard to get it nice.

Has anyone been in this situation via  could offer any advice?

I just took it for granted we would always be friends 😭

Devongardener

She can’t sell the house without your agreement.   Unfortunately once she is on the deeds and the joint mortgage, she legally does own half the house.
Who paid the deposit?

DullGreyGuy

Devongardener said:

She can’t sell the house without your agreement. 

Or a court order

misscleo said:

Hi everyone,

I think I am up the creek without paddle but here goes.

I struggled to get a mortgage on my own, due to being self employed and my dream house came up. My best friend offered to take out the mortgage with me as that is the only way I could get the house. The verbal agreement (witnessed) was that she would be on both the deeds and mortgage but would not make any financial contribution or have any other involvement. Aside from staying with me rent free for a year when her relationship broke down, she has had no involvement what so ever with any running costs / bills /mortgage repayments / improvements. 

A few months ago we had a major fall out over something trivial, but despite my efforts our friendship is not salvageable.

To cut a long story short she now wants the value of half of my house. I can't afford that so I am worried she is going to sell the house, without my agreement and she has threatened to take me to court for any legal costs incurred. 

I am waiting to speak to a solicitor. But I am terrified I will be made homeless and I will lose everything. I have paid 60k on the house so far. She has paid 0. The value of the house has increased by about 30k since purchased. I have worked so hard to get it nice.

Has anyone been in this situation via  could offer any advice?

I just took it for granted we would always be friends 😭

Whats the basis of ownership between you? Joint Tenants or Tenants in Common? If the later did you draw up a deed to confirm the percentage split between you?

Emmia

Unfortunately you might (probably) have to accept selling the house, and buying something else with the equity you get out.

Sorry, it's not the answer you want, but trying to fight this legally is just going to result in you being poorer.
.

housebuyer143

Hindsight is a wonderful thing, but you need a written contract, not just verbal, you also need to be tenants in common with a percentage split so she isn't entitled to half your house. 
Unfortunately without this legally half the house is hers, so if you want a variation in the split you will probably need her agreement or a court order detailing a different amount. 

If you play hardball and refuse to sell she will have to take you to court, but you need to get her off the mortgage because you can't remortgage to a better rate unless she agrees and why is she going to help you and do this.

I would be inclined to pay her off, maybe £5-£10k and remortgage without her. If you can't, then I would get this agreement in writing and sell the house so you can split all ties with her.

misscleo

Devongardener said:

She can’t sell the house without your agreement.   Unfortunately once she is on the deeds and the joint mortgage, she legally does own half the house.
Who paid the deposit?

I paid the whole deposit, she has said nothing.

misscleo

housebuyer143 said:

Hindsight is a wonderful thing, but you need a written contract, not just verbal, you also need to be tenants in common with a percentage split so she isn't entitled to half your house. 
Unfortunately without this legally half the house is hers, so if you want a variation in the split you will probably need her agreement or a court order detailing a different amount. 

If you play hardball and refuse to sell she will have to take you to court, but you need to get her off the mortgage because you can't remortgage to a better rate unless she agrees and why is she going to help you and do this.

I would be inclined to pay her off, maybe £5-£10k and remortgage without her. If you can't, then I would get this agreement in writing and sell the house so you can split all ties with her.

Thank you for your reply. She has changed us from joint tenants to tenants in common with an equal split. She has said she would accept half the increased value of the house but I have to pay this within 3 weeks. There is no way I can find that sort of money in 3 weeks.

I am starting to think she has been planning this for some time.

misscleo

DullGreyGuy said:

Devongardener said:

She can’t sell the house without your agreement. 

Or a court order

misscleo said:

Hi everyone,

I think I am up the creek without paddle but here goes.

I struggled to get a mortgage on my own, due to being self employed and my dream house came up. My best friend offered to take out the mortgage with me as that is the only way I could get the house. The verbal agreement (witnessed) was that she would be on both the deeds and mortgage but would not make any financial contribution or have any other involvement. Aside from staying with me rent free for a year when her relationship broke down, she has had no involvement what so ever with any running costs / bills /mortgage repayments / improvements. 

A few months ago we had a major fall out over something trivial, but despite my efforts our friendship is not salvageable.

To cut a long story short she now wants the value of half of my house. I can't afford that so I am worried she is going to sell the house, without my agreement and she has threatened to take me to court for any legal costs incurred. 

I am waiting to speak to a solicitor. But I am terrified I will be made homeless and I will lose everything. I have paid 60k on the house so far. She has paid 0. The value of the house has increased by about 30k since purchased. I have worked so hard to get it nice.

Has anyone been in this situation via  could offer any advice?

I just took it for granted we would always be friends 😭

Whats the basis of ownership between you? Joint Tenants or Tenants in Common? If the later did you draw up a deed to confirm the percentage split between you?

It was joint tenants but she has changed it to tenants in common equal split.

housebuyer143

misscleo said:

housebuyer143 said:

Hindsight is a wonderful thing, but you need a written contract, not just verbal, you also need to be tenants in common with a percentage split so she isn't entitled to half your house. 
Unfortunately without this legally half the house is hers, so if you want a variation in the split you will probably need her agreement or a court order detailing a different amount. 

If you play hardball and refuse to sell she will have to take you to court, but you need to get her off the mortgage because you can't remortgage to a better rate unless she agrees and why is she going to help you and do this.

I would be inclined to pay her off, maybe £5-£10k and remortgage without her. If you can't, then I would get this agreement in writing and sell the house so you can split all ties with her.

Thank you for your reply. She has changed us from joint tenants to tenants in common with an equal split. She has said she would accept half the increased value of the house but I have to pay this within 3 weeks. There is no way I can find that sort of money in 3 weeks.

I am starting to think she has been planning this for some time.

Ok, she's can't change it to tenants in common without your signed agreement, so are you sure she has done this and isn't just telling you she has? 

It appears she is up for negotiating which is good. I would counter and tell her £10k but you will provide it to her once you have either sold/remortgaged. Decide which you want to do and then put that in writing with her. Make the agreement payable on you remortgaging/selling. 

You are in a strong position in that she can't make you sell and she will have to pay court fees to do so, and is she going to do that?  Does she really want to be tied to you forever? If you don't pay, her credit is destroyed, if she wants to buy she has to pay 3% additional stamp duty etc. It's not just you that's in a bad position and it's probably worth pointing this out in any offer you make her.

sammyjammy

housebuyer143 said:

misscleo said:

housebuyer143 said:

Hindsight is a wonderful thing, but you need a written contract, not just verbal, you also need to be tenants in common with a percentage split so she isn't entitled to half your house. 
Unfortunately without this legally half the house is hers, so if you want a variation in the split you will probably need her agreement or a court order detailing a different amount. 

If you play hardball and refuse to sell she will have to take you to court, but you need to get her off the mortgage because you can't remortgage to a better rate unless she agrees and why is she going to help you and do this.

I would be inclined to pay her off, maybe £5-£10k and remortgage without her. If you can't, then I would get this agreement in writing and sell the house so you can split all ties with her.

Thank you for your reply. She has changed us from joint tenants to tenants in common with an equal split. She has said she would accept half the increased value of the house but I have to pay this within 3 weeks. There is no way I can find that sort of money in 3 weeks.

I am starting to think she has been planning this for some time.

Ok, she's can't change it to tenants in common without your signed agreement, so are you sure she has done this and isn't just telling you she has? 

Yes she can, she should have asked for agreement but she can change it to tenants in common without agreement.

Joint property ownership: Change from joint tenants to tenants in common - GOV.UK (www.gov.uk)

Neilos9

Had similar to this......Cost me just shy of £70,000 in legal fees.
Court case finally thrown out and in my favour......, but i'm not sure i am a winner.......no recompense for my costs....