Kids disagreeing. Any ideas which was is right!

[gingerandproud4always]

I'm at a loss. My kids are in a bit of a disagreement and I'm being pulled in both directions.

Child A and child B. Similar ages/salary etc. Child A has a partner with a bad credit rating so when they bought their house, B lent them some money for the deposit and went on the mortgage. This was the only way A could buy their house.

B wanted to buy a house 3 years later, A sold house, gave B back the deposit (with no interest). A kept equity as had been paying the mortgage.
B was at a disadvantage as was no longer technically a first time buyer and missed out on all the relevant schemes.

5 years on they’ve both received a letter saying there was a refund due to them from the mortgage. They are both to receive cheques soon.
A thinks they’re entitled to the whole thing as they’d been paying the mortgage.
B thinks it should just be split and they keep their own cheques as it is legally half theirs.

What’s the Mumsnet opinion?

Share or it will cause trouble always

Share - A wouldn't have it without B

If B got the letter saying he is due a refund, it's his money. A needs to remember without B's interest free loan he wouldn't have been able to buy the house in the first place!

My opinion would be to tell them they need to sort it between themselves as your not going to take sides!

In the first place B should have got their deposit back, A got their mortgage payments back and any excess increase in value split. A has done very well out of this arrangement and should appreciate that. B has been put in a worse position by helping A so should keep their cheque.

B has already been financially penalised for doing the the decent thing and helping A. Of course they should share.

B helped A to their detriment. At minimum they lost mortgage deals and 3 years of interest on their deposit. A should be more grateful as B did them a huge favour. Sharing is the only fair option as A owes B.

I think B should have it all

Bloody hell how ungrateful is A?? B is definitely right and a kind sibling to have helped A out in the first place. Plus if the cheque is addressed to B then there’s nothing A can do about it!

I'm with B and as he will get the cheque direct made out to him/her how does A think they are going to get it from them anyway?!

Although I would say B isn’t entitled to it I think it would be the right thing to do for it to be split; it was Bs choice to buy with A and to then miss out on schemes etc but they were doing a nice thing and A should recognise that

In theory A since they were paying the mortgage. But if I was A I would let B keep the money since there is no way I could have bought the house without them plus I never paid them interest.
A may no longer be eligible for first home buyer option - but they were only going to be able to buy a house and have access to the equity because of B.

B is right
And A should have given B some of the equity too.

A had poor credit and not enough savings, got a house, made profit from it and comes out great
Whilst B is left at a disadvantage for being generous abs helping out when they absolutely didn’t need to.

A couldn’t have bought the house if it wasn’t for B

Legally I don’t know where they stand but A sounds like they need to appreciate the help they were given and the sacrifice made for that if they want to have a good relationship with their sibling

B was at a disadvantage as was no longer technically a first time buyer and missed out on all the relevant schemes.

I was advised that if you sell your property, you effectively ARE a first time buyer when you buy another property later on. Is this not the case?

I've a Help to Buy ISA going right now even though we have a property.

A should be more bloody grateful. B should keep their share.

A is being greedy.
B is learning how difficult it is to be generous, and how it's easy to want to help, then hard to have no regrets when complications happen (as they do).
I'd be on B's side.

I think they split it. Without B's help they'd never had had the mortgage.

How much are we talking?

A should have given B half the equity in the house when it was sold. B is entitled to half the cash cheque wise.

A sounds like a tight arsed self centred user.

I’m also with B!

M4J4 as an estate agent I can confirm that if you already own a house, sell it then go on to buy another you are not a first time buyer.

Also B should get their share of the refund! A seems very ungrateful to be fair.

A is a massive CF and should have shared the equity with B AND paid them interest when selling the house and the mortgage refund should be split between them to reflect this.

It depends entirely on how much we are talking. If only couple hundred then I would give to B as a thank you. If more then split between the two. A should not keep all.

It’s irrelevant who was paying the mortgage

A is being a grasping nowt. B did a favour going on A mortgage and lending him money without any interest.

B is right. And don’t stay out of it! How unfair on B who’s been very generous if you effectively side with A which is what not giving a view would seem like.