Tenants in common

Freddie29

Hi,

My partner & I bought a right to buy council house with 50% discount, we have it as tennants in common,  unfortunately my partner passed away earlier this year & has left his share to his son.
His son wants me to buy his 50% share, there is still a mortgage on the property & a pre emptive clause with the council as we havnt owned it for over 5 years, I have many questions!!
Is he entitled to have half the valuation of the property as we bought it at half it's value, plus a mortgage still owing & would only he be responsible to pay back the % to the council?? 

Many thanks

MWT

You are going to need to take some legal advice on this, and are you, or his son acting as your partners executor?

My understanding is that the discount you received is split between you and your partner, and your partners share should pass to his son, so his inheritance (if he wishes to have you buy him out ) is 50% of the market value now less 50% of the outstanding mortgage at this time, not 50% of the original discounted value.

As to the timing and the impact of any potential sale, did your partner make any provision for you to remain in the property following his demise?

It is not unusual to leave a lifetime interest in the property to a partner with the 50% ownership passed on as per the terms of his will, so the matter of a sale does not come up immediately as although those inheriting can ask to be bought out there is often no immediate obligation to do so...

This is why you will need advice...

 

Keep_pedalling

Did your partner’s will also give you the right to live in your home for life. If it did you are the beneficial owner of your partners share with legal ownership held in trust. Unless this was a DIY will that would be the normal way of doing this. This type of trust is known as an immediate post death interest trust and his some would not actually inherit until either your died or you no longer needed the house.

If his son has been left his share absolutely then he is entitled to half its value at the time of your partners death (which may not be the full market value due to the pre-emptive clause) less half of the outstanding mortgage as it stood when he died. 

Freddie29

Unfortunately my partner didn't leave a will , but I was certain that we did something with the solicitors who did the legal work for the house, that the surviving person could live in the house till they passed & then the beneficiaries would receive there shares in the property. The solicitors said there's nothing on file stating that, i've asked them if they would re check & they've agreed to check the archives. 
My partners son is the administrator & took all his private &  personal documents, which I didn't even get to read. I have not information or documents regarding the house or his pensions/assets.

It just all seems very unfair that my partner only paid 2 & half years on the mortgage  around 7,000 & we got the discount thru me being a council tenant in the property since 1994 & him being added on around 2014 but i've probably got to give his son around 70,000 for his share!! 

If I say I don't want to buy his share can he force me to sell the property? 
Or move in?
Do I have to buy his share?

marcia_

Freddie29 said:

Unfortunately my partner didn't leave a will , but I was certain that we did something with the solicitors who did the legal work for the house, that the surviving person could live in the house till they passed & then the beneficiaries would receive there shares in the property. The solicitors said there's nothing on file stating that, i've asked them if they would re check & they've agreed to check the archives. 
My partners son is the administrator & took all his private &  personal documents, which I didn't even get to read. I have not information or documents regarding the house or his pensions/assets.

It just all seems very unfair that my partner only paid 2 & half years on the mortgage  around 7,000 & we got the discount thru me being a council tenant in the property since 1994 & him being added on around 2014 but i've probably got to give his son around 70,000 for his share!! 

If I say I don't want to buy his share can he force me to sell the property? 
Or move in?
Do I have to buy his share?

 If there was no will leaving it to the son it's not necessarily his. 

Freddie29

His son is his only living relative., so wouldn't he be entitled to all the estate ?

marcia_

Freddie29 said:

His son is his only living relative., so wouldn't he be entitled to all the estate ?

Possibly if partner means not married 

Freddie29

No we wasn't married 

MWT

Freddie29 said:

Unfortunately my partner didn't leave a will , but I was certain that we did something with the solicitors who did the legal work for the house, that the surviving person could live in the house till they passed & then the beneficiaries would receive there shares in the property. The solicitors said there's nothing on file stating that, i've asked them if they would re check & they've agreed to check the archives. 
My partners son is the administrator & took all his private &  personal documents, which I didn't even get to read. I have not information or documents regarding the house or his pensions/assets.

You are looking for a deed of trust, also known as a declaration of trust, that would normally have been drawn up by your solicitors at the same time as the house was purchased.

Freddie29 said:

If I say I don't want to buy his share can he force me to sell the property? 
Or move in?
Do I have to buy his share?

I would focus on the deed of trust first as that would deal with most of those questions.

Are you able to continue paying the mortgage on your own and would you meet your lenders affordability criteria to remortgage on your own if necessary?

Was there any life insurance intended to cover the mortgage in this eventuality? ... if so were you named as the beneficiary?

Keep_pedalling

marcia_ said:

Freddie29 said:

Unfortunately my partner didn't leave a will , but I was certain that we did something with the solicitors who did the legal work for the house, that the surviving person could live in the house till they passed & then the beneficiaries would receive there shares in the property. The solicitors said there's nothing on file stating that, i've asked them if they would re check & they've agreed to check the archives. 
My partners son is the administrator & took all his private &  personal documents, which I didn't even get to read. I have not information or documents regarding the house or his pensions/assets.

It just all seems very unfair that my partner only paid 2 & half years on the mortgage  around 7,000 & we got the discount thru me being a council tenant in the property since 1994 & him being added on around 2014 but i've probably got to give his son around 70,000 for his share!! 

If I say I don't want to buy his share can he force me to sell the property? 
Or move in?
Do I have to buy his share?

 If there was no will leaving it to the son it's not necessarily his. 

The laws of intestacy are clear with no will everything goes to the son. Unfortunately far too many unmarried couple seem totally oblivious to this so fail to do the sensible thing and make a will. 

One of the difficulties here is who to value of the deceased partners share because with the councils right to by it back it won’t be full market value.

One option, if the OP is on good terms with the son, is to speak to him about making a deed of variation giving her life interest in his fathers share which he will then inherit on her death or if for any reason she needs to move out. This also depends on the OPs ability to continue to pay the mortgage.

Freddie29

The biggest issue is the lack of communication with his son & me feeling like I'm in limbo, not knowing what he wants exactly!
Fortunately I can continue to cover the mortgage but with my age & income I don't think it would be possible to re mortgage .
I have recently received 15.000 from one of his pensions but don't know if there's any more money coming to me.