Bought house with parents, now they want their money back in one go.

[DreamlessSleep]

My mum and step dad suggested that they helped us buy a house 5 years ago when our landlord was selling the house we were in, but now they want all their money back in one go (70,000 I don't begrudge them for wanting it but think they could have gone about it in a different way) and obviously we don't have this. We tried remortgaging but they won't take their names off the mortgage therefore we cant as they are now deemed too old to be on our mortgage.

Are there any other options I have not thought of apart from from selling? (Which is the option it looks like we will have to go for at the moment.) We were naive when we bought it and in hindsight we should have stuck to renting.

Please do not allow your parents to get away with this. It may damage your relationship further. MAke sure the loss comes out of the £70k.

MummytoMog hoping we can up the offer. I do want more money but I also want to get out of this situation quickly, it makes me feel ill thinking about it all.

Comewinewithmoi I think we are irreparably damaged now anyway. They are so tight fisted they wont hear about taking less money. They'll get less from the sale than they want anyway.

This sounds entirely wrong. Either:

1. they have lent you the money OR

2 They have invested in the house

It sounds very much like this is 2 not 1. They haven't just lent you money on the condition that you pay it back, it sounds like they've insisted on being part owners. If that is the case then they have to take a hit if the price of the investment goes down and in the costs of sale and purchase (unless you've agreed otherwise). They also can't automatically demand that it's sold to get the money back.

Did you get legal advice when you bought the house and put them on the deeds/mortgage in the first place? What do the deeds say about who owns what in the house? Did you get a legal agreement as to who would be responsible for paying what for the house and when one owner could request a sale? I would expect any solicitor dealing with the original purchase to have made sure you and they got independent advice and put in place an agreement.

Please get proper advice. It sounds as if you are being forced into a really awful position by a confusion about the original agreement. I know you want to keep things sweet in the family but if they have forced you out of a home and got an unfair financial deal out of it (the full £70K) then you will always resent them

Please see a solicitor. Or re-post in Legal. As joint owners, you share out the sale proceeds equally. They cannot have their original stake back.

These might help a bit (though they are mainly about couples) shelter
our property
They can't just tell you to sell. Please check whether you had some form of trust deed or agreement set up when you bought. I'd be really shocked if a lawyer did the work for the purchase without telling you to set up an agreement.

I would be taking the house of the market and getting legal advice.

As far as im aware we made no official agreement. As I said before we were very naive about the whole thing. It was their suggestion to help us, they chose the house. So many things things they've said and done about this is making very cross right now. We were very stupid. Panicking as the landlord was selling the house were living in then didnt help though.

Have you heard the term "distressed seller"? It is a seller who is forced to accept a non-market price because of circumstances. It is a non-market price because most/ordinary sellers would not sell at that price.

Your proposed buyer, being the ex of your friend, probably knows your circumstances are "distressed", so is taking advantage.
WHEN you speak to a solicitor, be sure to state that you're being oressured into becoming dustressed sellers with no legal enforcement distressed aeller

Argh - can't get to the bottom of my posts to get rid of the extra bits of sentences! Apologies for the mess

Dreamless, I am so sorry you're going through this - it is pretty awful. I know it is hard but try not to allow yourself to be pushed around by other people's needs/wants. Is it worth making a list of what you personally need to do to improve the clarity of the situation and get the house onto the market - say, get legal advice / make appt with r/e agent for valuation etc? That way you're following your to-do list and not being knocked off track by other people around you.

It really sounds like you were rushed into this property by other people (the fact you didn't even choose it speaks volumes!) and now you're being rushed out of it. Put the metaphorical handbrake on the situation, and take some control back. Doing this fast looks tempting but actually will just push you into compromising your own needs/wants. Also with all the paperwork, no house sale is actually 'fast' anyway.

The friends ex who has put in the very low offer is, at the very least taking advantage of your situation and is doing you no favours. There is no point in grabbing at the first offer you get - far better to present the house beautifully for sale and put it to the open market in a methodical manner. Take some control back WRT to the timing and the circumstances of this - you will feel better straight away and you'll make better decisions.

very best of luck!

OK, let me tell you about what we did with our first house.

OH couldn't raise a deposit, so he and his brother bought together, their parents lent them the deposit for five years. They paid interest monthly to their parents on the deposit amount, then remortgaged after five years and paid them back the capital. Two years later, BiL wanted out of the house (to buy one with his GF) so DH worked out (with solicitors) what BiL's share of the current equity was and paid him that to buy him out, and moved the mortgage into his name, had the deeds changed etc, paid stamp duty and so on. So parents lent money and got entire capital plus interest back, brother invested in property, so got a share of the profit the flat made over that period (was £30k I think).

I'm guessing the best option would be for them to let you have the house to yourself, by remortgaging without their names on. Can you offer them two options - explain that the house has lost value, so not able to pay them back the full amount and they can only get a proportion of the value of the house back (so lose money) and the second would be to get their entire stake, plus fair interest for the years they lent it to you, back but have no further claim on the house.

They sound SO selfish. They should not have offered to lend you the money if they were going to be like this.

It was their suggestion to help us, they chose the house.

So in essence, they bought an investment property, and you bought a share on a part-ownership basis. It's water under the bridge, and it doesn't help your situation to pick over the bones of what went before, but either you were all spectacularly naive or alternatively they were a great deal more aware of the implications than you. Given people who are spectacularly naive tend not to have seventy grand lying around loose when they're 45 (you mother's now fifty, the purchase was five years ago), I would favour the latter.

You're going to lose money by selling up, but I think your choices are limited and in any event are going to leave your relation with your parents a smoking ruin. You can either:

(a) do nothing, shout "fuck you, see you in court" and leave it to m'learned friends (expensive, ugly and very stressful)

(b) get them out of the stupid idea that they can remain on the deeds and buy them out at an agreed (how?) price (sensible, but it sounds like they don't want to be sensible)

(c) sell up, divvy up the proceeds (you all lose money) and then attempt to buy another house (will you have a deposit?)

In any case, your lessons are (a) get legal advice before doing complex financial transactions, no matter how much you think the parties involved are trustworthy and (b) tell your parents to fuck off out of your lives.

Please please please don't compound this mess which you essentially got into by failing to obtain proper legal advice- make sure before you do anything else or any make any further decisions that you talk to a solicitor first. I really cannot fathom why your parents lent you this money in the first place if as a result you are going to end up with no house and no money (and they will get less than the original stake anyway).

Do your parents happen to know your friend's ex, the one who is making the low offer?

Don't forget there's the new government buying scheme, it has its draw backs but might help you if your struggling with the deposit as it can be for 2nd homes / 2nd mortgages

Legal advice sounds the way to go, just cant really afford it.

They didnt know the friend's ex before he made the offer, no. He's desperate for a place as he and his ex have had to sell their brand new place now they've split up so obv he wants something cheap.

Dreamless - check your house insurance policy - there may be access to legal help in the cover you have. OR check with CBA. Really, you are better off spending £100 on advice. You sound really stuck and it would be good for you to have professional objective advice. At least call the CBA!

I second all of the above advice. Mainly get legal advice. You are standing to lose your home and money. It will be a false economy to try and save some money by going without legal advice.

Also don't take the low offer. I can completely understand you are in shock (not to mention pain and turmoil that your parents have done this), but a quick sale isn't in your interests.

The time spent waiting for a buyer will allow you to take and process legal advice, and save up for a deposit and moving costs.

Another vote for "please do no accept this offer". If your relationship with your parents is already in tatters I don't see how getting legal advise or sitting tight is going to make it worse. H20Woe and Friday16 have hit the nail on the head. You say your parents will accept no less than their 70k, I think you will find that if your are all joint owners the solicitors will divvy up any profits between you all, therefore you will all get 25%. If you refuse to sign anything to the contrary there is very little they can do.
You need to establish if you are joint tenants or tenants in common, there are two ways to jointly own a property.
Post in Legal too.

Dreamless, you can't afford not to get legal advice on this. Honestly, post in Legal, someone will be along to help.

dreamless can I clarify please..... Your mother has accepted she is only going to get a proportion of the money back hasn't she? She must take the hit on the loss and the EA and legal fees?

I'm so sorry you are in such a difficult situation. They sound bonkers.

Dreamless stop prevaricating. Call a bloody solicitor! Many would give their interpretation first and charge once they do work. It might not take much. A couple of official letters might be enough.

Don't shaft your family because you feel ill with worry. It could cost you more than house.... (Health, relationship etc) come on my dear please, please make a call.

I will seek proper legal advice.

No pasta, it wouldn't be as bad if they'd accept less but they want as much as they can, which is ridiculous.

You definitely need legal advice. It will cost you less in the long run.

Your mother and step father can't act without reference to the law even if they do seem willing to act without reference to any sense of reasonableness.

I'd sell the house and fuck them both off. They sound as deranged as my parents were.

What kind of parent takes their offspring out of a safe mortgaged house and puts them into rental?.

Legal advice sounds the way to go, just cant really afford it.

I'm not sure you can afford not to, though. Look at the problems you've got into through doing it yourself first time around.