Death of a Landlord and dispute with his family
flower105
Posts: 5 Forumite
Hello, I'm just looking for some advice.
My mum's landlord has died and his family wants to sell the house. It get's more complicated than that however.
My mum originally wanted to buy the house, but was unable to get a mortgage at the time, so a "close friend" said that they would buy the house in his name and eventually it would be hers. So she paid him the house deposit, he got the mortgage. Since then has paid the mortgage amount into his account to pay the mortgage payments. Of course, none of this appears to be in writing and doesn't have a rent book either.
He died last year, and originally his wife said that it wouldn't be a problem for her to have the house. However, I've just heard that his sons have found out about this house and want to sell the house and get some money out of it.
She is almost 60 now and is unable to work due to illness so I'm really worried as I am not in a position to help directly and live far away. I really would like to find out if there is anything that I can do, so any help or advice is very much appreciated. Thank you.
My mum's landlord has died and his family wants to sell the house. It get's more complicated than that however.
My mum originally wanted to buy the house, but was unable to get a mortgage at the time, so a "close friend" said that they would buy the house in his name and eventually it would be hers. So she paid him the house deposit, he got the mortgage. Since then has paid the mortgage amount into his account to pay the mortgage payments. Of course, none of this appears to be in writing and doesn't have a rent book either.
He died last year, and originally his wife said that it wouldn't be a problem for her to have the house. However, I've just heard that his sons have found out about this house and want to sell the house and get some money out of it.
She is almost 60 now and is unable to work due to illness so I'm really worried as I am not in a position to help directly and live far away. I really would like to find out if there is anything that I can do, so any help or advice is very much appreciated. Thank you.
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Comments
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How much deposit was paid, how long ago was that and is there evidence of that payment?
How does the amount of 'mortgage' your mother is paying compare with the level of rent she might otherwise pay?0 -
Hello, I'm just looking for some advice....
Get a solicitor.
Your argument would be that your mum does not have a landlord. She is the beneficial owner of the property. The 'close friend' merely held the legal title to the property as a trustee.
Hopefully you can produce banking records to show the payment of the deposit and the mortgage payments.0 -
She paid £5000 for the property in 1994. I think it was bought for £65,000. I'll ask if there is evidence for the payment. It's now worth around £185,000.How much deposit was paid, how long ago was that and is there evidence of that payment?
How does the amount of 'mortgage' your mother is paying compare with the level of rent she might otherwise pay?
She pays the mortage amout, to pay rent would be around aproximately 4 - 5 times what she pays for a similar house in the area0 -
I hope she can too. She used to pay cash into the bank account directly, so there should be some kind of receipts. The "landlord" has never paid for anything in the house such as the heating being installed or new windows. Is it worth bringing that up?Get a solicitor.
Your argument would be that your mum does not have a landlord. She is the beneficial owner of the property. The 'close friend' merely held the legal title to the property as a trustee.
Hopefully you can produce banking records to show the payment of the deposit and the mortgage payments.0 -
I hope she can too. She used to pay cash into the bank account directly, so there should be some kind of receipts. The "landlord" has never paid for anything in the house such as the heating being installed or new windows. Is it worth bringing that up?
Yes - as this is evidence of her beneficial ownership. Don't expect this to be an easy process however.0 -
How long does the mortgage have left to run?
Was the property ownership transfered to the wife on the death of the husband?
Has the rental income ever been declared to the HMRC? Whatever the informal arrangement agreed between the parties. There's no evidence. Likewise disposal will result in a large capital gains tax bill.
The only eviction route wil be though the courts. The sons have no say currently. Though if the wife were to die then the situation changes.0 -
Can she afford to keep the house? Or is this about getting a lump sum?0
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Of course if this house was worth £65,000 in 1994 it would presumably be worth £500k plus now depending on where it is.
So there is a lot at stake in more ways than one.0 -
Let's hope it wasn't an interest-only mortgage."You were only supposed to blow the bl**dy doors off!!"0
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maninthestreet wrote: »Let's hope it wasn't an interest-only mortgage.
It was "interest -only mortgage".
What kind of difference does it make ? ( except the obvious, that selling the house will be the only way to pay the lump sum)
Thanks for all your replies0
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