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    • sparkx
    • By sparkx 8th Aug 18, 2:17 PM
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    sparkx
    Brother's Joint Mortgage issue
    • #1
    • 8th Aug 18, 2:17 PM
    Brother's Joint Mortgage issue 8th Aug 18 at 2:17 PM
    My son's have the opportunity of purchasing a house at half price from a family member who was left it in a will. She wants it to stay in the family and is selling it to the boys at a bargain price as they were close to the uncle who left it. It's a large 5 bed house and is more than big enough for them.

    The issue is my youngest son is getting married in September, I'm not sure the marriage will last too long, so is there any security we can put in to place which ensures that the other son will not have to sell up and lose his home if his younger brother gets divorced. Or will my youngest son have no option but to sell up to give her half of the his half of the share? Or will it be a case of him buying her half (even though she will not be named on the mortgage) and can she refuse and force them to sell up?

    It's a lot of questions, but some basic advice would be appreciated.
Page 1
    • Pixie5740
    • By Pixie5740 8th Aug 18, 3:02 PM
    • 13,129 Posts
    • 18,900 Thanks
    Pixie5740
    • #2
    • 8th Aug 18, 3:02 PM
    • #2
    • 8th Aug 18, 3:02 PM
    My son's have the opportunity of purchasing a house at half price from a family member who was left it in a will. She wants it to stay in the family and is selling it to the boys at a bargain price as they were close to the uncle who left it. It's a large 5 bed house and is more than big enough for them.

    The issue is my youngest son is getting married in September, I'm not sure the marriage will last too long, so is there any security we can put in to place which ensures that the other son will not have to sell up and lose his home if his younger brother gets divorced. Or will my youngest son have no option but to sell up to give her half of the his half of the share? Or will it be a case of him buying her half (even though she will not be named on the mortgage) and can she refuse and force them to sell up?

    It's a lot of questions, but some basic advice would be appreciated.
    Originally posted by sparkx
    It depends on which part of the UK your son is in and/or how long the marriage lasts. Prenuptial agreements aren't legally binding in the UK but a judge can take it into account during divorce proceedings.

    Do you expect the wife to stump up the higher rate of SDLT/LTT/LBTT should she and her husband decide to buy their own home in the future or will they be expected to live with the older brother forever?

    What does your son, the one getting married, have to say about all this?
    • sparkx
    • By sparkx 8th Aug 18, 3:28 PM
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    sparkx
    • #3
    • 8th Aug 18, 3:28 PM
    • #3
    • 8th Aug 18, 3:28 PM
    It was the younger brother's idea, he and his wife to be can't get a mortgage on their own, the older brother earn's twice as much as but also couldn't afford a property anywhere near as big on his own, so jointly seems to be the answer. The house is plenty big enough to convert in to two flats and possibly look at getting leases down the line, or we could even consider sorting that out first to protect the older son. I guess they need to seek legal advice.

    They live in Kent, southeast UK and I really don't expect the marriage to last longer than a few years, she's a serial cheat and he's blinded by love, but that's a story for another time.
    • PasturesNew
    • By PasturesNew 8th Aug 18, 3:34 PM
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    PasturesNew
    • #4
    • 8th Aug 18, 3:34 PM
    • #4
    • 8th Aug 18, 3:34 PM
    This could end up being a nightmare for everybody involved.... two brothers, that's fine - but introduce a new wife into the equation and you'll quickly have arguments about decor, how the kitchen's been left, who is eating our food, go out we've friends coming over - the single one would be outnumbered in his own home. Not to mention 5 years down the line if the Missus decides to procreate....

    Before you know it the single will be stuck in his room, fingers in his ears, while yummy mummy is downstairs hosting a birthday party for 12 3 year olds....

    And, if you think it won't last - what if she pops out the inevitable "meal tickets" if she thinks she can get to keep/stay in the house with her kids until they're 18+?
    • sparkx
    • By sparkx 8th Aug 18, 3:43 PM
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    sparkx
    • #5
    • 8th Aug 18, 3:43 PM
    • #5
    • 8th Aug 18, 3:43 PM
    Yes, I feel the same, but this property will be worth 300K when renovated at the cost of about 25k, and they are buying it for 120K, so there's no way they can turn it down. Even if they do the renovations and sell it five years when she starts popping out the meal tickets. Currently they all get on really well and have done for 5 years that they've been in the relationship, all three have previously lived together for two years absolutely fine, the brothers are pretty laid back. So it is an opportunity they can't let slip. And, as mentioned, their plan is to divide in to two flats, over time. I just wondered if they could be forced to sell if the marriage ended, although, in hindsight, I can see that they could simply buy her out.
    • Grezz24
    • By Grezz24 8th Aug 18, 3:57 PM
    • 178 Posts
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    Grezz24
    • #6
    • 8th Aug 18, 3:57 PM
    • #6
    • 8th Aug 18, 3:57 PM
    put it all in the first brothers name if you/they are worried about the new wife.

    But in reality she will be his wife and will be part of the family, if she is going to be in the house, paying towards the running costs etc she should get a share.
    • sparkx
    • By sparkx 8th Aug 18, 4:00 PM
    • 4 Posts
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    sparkx
    • #7
    • 8th Aug 18, 4:00 PM
    • #7
    • 8th Aug 18, 4:00 PM
    Well yes, if the marriage ends mutually or he's at fault, but not if she continues to cheat on him.. If you choose to do that you shouldn't be entitled to any of it. My opinion, of course.
    • Pixie5740
    • By Pixie5740 9th Aug 18, 8:06 AM
    • 13,129 Posts
    • 18,900 Thanks
    Pixie5740
    • #8
    • 9th Aug 18, 8:06 AM
    • #8
    • 9th Aug 18, 8:06 AM
    This could end up being a nightmare for everybody involved.... two brothers, that's fine - but introduce a new wife into the equation and you'll quickly have arguments about decor, how the kitchen's been left, who is eating our food, go out we've friends coming over - the single one would be outnumbered in his own home. Not to mention 5 years down the line if the Missus decides to procreate....

    Before you know it the single will be stuck in his room, fingers in his ears, while yummy mummy is downstairs hosting a birthday party for 12 3 year olds....

    And, if you think it won't last - what if she pops out the inevitable "meal tickets" if she thinks she can get to keep/stay in the house with her kids until they're 18+?
    Originally posted by PasturesNew
    Surely I don't need to explain the birds and the bees to you.
    • Pixie5740
    • By Pixie5740 9th Aug 18, 8:08 AM
    • 13,129 Posts
    • 18,900 Thanks
    Pixie5740
    • #9
    • 9th Aug 18, 8:08 AM
    • #9
    • 9th Aug 18, 8:08 AM
    Well yes, if the marriage ends mutually or he's at fault, but not if she continues to cheat on him.. If you choose to do that you shouldn't be entitled to any of it. My opinion, of course.
    Originally posted by sparkx
    Yes that is just your opinion rather than the law. Fortunately, or unfortunately depending on how you look at things, should the marriage be short then each party will be left in the same position as they were in at the start of the marriage so if it all implodes in the relatively near future the house shouldn't even be an issue.
    • Gurj247
    • By Gurj247 9th Aug 18, 10:00 AM
    • 125 Posts
    • 47 Thanks
    Gurj247
    Assuming you and your youngest son get on well, I would personally look to purchase the property between yourself (if possible) and your eldest son, with you holding on to the property (for your youngest son)


    If the marriage goes all wrong then you can gift the share you have in the property to your son and so long you live another 7 years beyond that point then there is no inheritance tax to pay.


    So as not to annoy the eldest, the youngest son should pay you rent so to speak (equivalent to his share of a mortgage), although depending on how this is done - this could be a taxable income for you (unless he pays for others things for his father like weekly shop, days/nights out etc)
    Date of Update – 28/07/16
    Goal 1 – Reduce Mortgage - £116,500/£120,000 = 97%
    Goal 2 – Skyline GTR Fund - £0/£40,000
    Goal 3 – Savings – Rainy Day - £6000/£10,000
    Goal 4 - Savings for Daughter - £100/mth
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