Urgent help needed re Trust and house ownership

[SecretSoul]

Hi,

Just wondering if any legal people can help with a question of what takes precedence.

DM has added her husband to the house deeds. They also created a Trust which has both of them plus me and a solicitor as the Trustees.

The three of us are beneficiaries.

The house was bought by my DM using money from a house in her sole name. But she added my stepdad’s name to the Deeds of this house and they took out a house equity loan in joint names (it’s one of those equity loans that you repay - basically a lifetime mortgage).

The shit has hit the fan here today. If she kicks him out what can he claim legally? Can he insist the house is sold and take half? I’m confused because of the presence of the Trust.

The big issue is that I’m just about to exchange contracts n the sale of my house and am supposed to be moving in with my (disabled) DC.

I need to know if he can force the house to be sold.

I’d be really grateful for any advice at all.

You need legal advice as it will depend on the exact wording of the trust.

I'm confused about how your mother and step father can be on the deeds when the house is owned by a trust? The trust would own the house, not them.

What that then means as far as the beneficiaries are concerned really depends on how the trust was formed but if, for example, it's a fixed trust then a percentage of the trust belongs to your step-father. Whether he can then take his share out of the trust is beyond my capabilities, especially without sight of the trust deed.

What is the trust for? The equity release mortgage company would not normally lend on a property in a trust, for obvious reasons. They want the house sold and the vast sums of interest paid back! You seem to have a confused state of affairs. Have they put the house in a trust to try and avoid paying off the loan? Did they see a solicitor about the loan and trust?

Who therefore owns the house? DM and step dad, or the trust? Is the trust for other assets? If he owns part of the property, he can require it to be sold. He should have been given a life interest in it. Not ownership of it. DM seems to have made serious mistakes.

A serious legal conundrum that needs expert advice.

Seems to me that they want the trust to own the house but in reality the equity release firm really own it. What a mess to sort out. How old are they and are they paying back the equity release firm? If not then it gets paid back when they die, with massive interest taken as well.

MSE has a good guide to the different types of equity release. Most are intended to be paid back when the house is sold but of course the sum to be paid is very high. Most lenders won’t allow a trust to have equity release so the exact nature of the mortgage and trust need to be clarified. Does the mortgage company know there is a trust? Is the property within the trust? Or not?