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Exit Strategy for Joint Mortgage - Family - Need some help and advice

(8 Posts)
cankles Sat 09-Feb-13 13:03:24

Hi again, I received some really helpful advice on a previous thread that I had posted about a joint mortgage agreement I have on my dad's property which I have paid a share of now for about 10 years; dad has just got re-married and will be seeing his solicitor this week to get advice around how him and his new wife proceed with his house, etc

Dad described wanting to "protect her interests" so whilst I understand where he is coming from, I think there is too much potential for messiness.

After a lot of thought this week, I think that I would prefer to exit from this agreement and move on - I think no matter what the boundaries are very blurred but I am not sure how to do this? Any help, advice is greatly appreciate, even if it's down to the best way of approaching this; I really don't want to cause a falling out but I think I need to move on and not have this business attachment.

Any help,advice, very much appreciated x

mumblechum1 Sat 09-Feb-13 14:01:35

You need to provide a bit more detail, I think;

1. do you live in the house?
2. is the house in joint names of you and your father?
3. did you make any lump sum contribution?
4. is there a trust deed?
5. what do you want to happen in terms of getting a lump sum/your name being taken off the mortgage account as well as off the deeds?

cankles Sat 09-Feb-13 15:17:54

Thanks for responding Mumblechum

1) no I don't live in the house,
2) it is in joint names with one other family member also;
3) no, we didn't make a lump sum contribution;
4) I don't think there is a trust deed because I haven't heard of one;
5) I hadn't really thought about what I would want to happen, I think I want out of this arrangement in a final way - if that means a lump sum and my name being removed from the mortgage and the deeds then that is it. Is that what would normally happen?

Many thanks for any further advice x

ValentineWiggins Sat 09-Feb-13 15:28:32

Was there any agreement at all about how the value of the house should be divided up when it was sold? Is it a 1/3 each of any profit after the mortgage is paid off? If so then can your dad's new wife buy you out by paying you the 1/3 of the current value-mortgage? Or your dad? This then gives you the lump sum and gets you out of it - assuming the mortgage company are happy to redo the mortgage in the new names...

mumblechum1 Sat 09-Feb-13 15:54:15

I think initially you need to think about whether you are entitled to a lump sum payment. That will depend on whether the house has increased in value significantly since you bought your share, but also whether you feel it is morally right to claim one if it means that your dad would have to sell (remortgaging is another matter). You also need to bear in mind whether the mortgage lender will agree to release you from the mortgage deed, which is a separate issue from transfering the beneficial interest to your father/his dp/other family member.

So I think your first steps are:

1. Get a valuation and compare it with what the house was worth when this arrangement started

2. Apply for a transfer of the mortgage account, ie for you to be released from your covenants under the mortgage. The lender may not release you, in which case you will probably have to do a deed of trust with the other owners. You need to be aware that if your name stays on the mortgage account and the house is repossessed, you are equally liable for any negative equity

Once you have that info, you'll be in a better position to decide what to do.

cankles Sat 09-Feb-13 16:10:09

thanks to you both - I didn't think it would be as complicated!

I have a lot to think about. I think I will follow the first steps, at least I can follow some sort of process, following what is going to be a nightmare conversation with my dad. I think the house will be worth more than it was bought for and they are in a position to remortage if they need to (she may have cash for all I know, I've only met her very briefly); and I take your point if they had to sell (which I think is very unlikely) I wouldn't undertake this.

Thank you for your advice, oh, for a magic wand x

mumblechum1 Sat 09-Feb-13 16:26:59

smile It'll all work out, don't fret.

cankles Sun 10-Feb-13 12:08:55

Thanks Mumblechum, I hope so x

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