Tenants in common fallen out

[Pamelapamelamarch]

Hi there,

I'd really appreciate some urgent advice. I bought a flat 5 years ago with a friend. I had a deposit but I didn't have enough of a salary for a mortgage.

My friend agreed to own the flat as tenants-in-common so I could obtain a mortgage. The agreement was that I would pay for everything - all mortgage repayments, capital repayments, interest, repairs, renovations and that the flat was mine. I would live in it. He would not.

We held the property as tenants in common with me as 99% share and him as 1% share.

Since we completed, he as never paid a penny and the agreement has worked as we outlined. However, we have massively fallen out and he is now very angry with me.

The mortgage is due to come to an end in 5 months. I need to remortgage the property. I would like to take him off the mortgage and off the title deeds - however, I feel he might be very difficult.

My worry is - and this is worst case scenario - that he will just not respond to anything or will not agree to take his name off and will not agree to remortgage ? What would happen in this case? Will I still be able to renew a mortgage in my name alone?

I am really very stressed about this. if anyone can offer any legal advice, I'd be very grateful.

This sounds complicated. Firstly you need to aware that this sentence is wrong legally:

"My friend agreed to own the flat as tenants-in-common so I could obtain a mortgage "

What has actually happened you have jointly bought the property with your friend, you did not obtain a mortgage on your own to buy - but in law, you bought it together.

You will not be able to take your friend off the title, or remortgage in your just your own name, without the friends agreement. They are a legal part owner.

You need to try to resolve the issue amicably - because if this becomes a court issue they would certainly be advised by a solicitor to try to persue a half share of any increase in the properties value (After the 99% deposit you provided has been deducted from the increase). It doesn't matter that you have made the mortgage payments yourself, though obviously the capital you have repaid from the original loan would be awarded to you at settlement.

In the short term if you can't resolve the problem with your friend then I suggest you will have to just allow the current loan to continue to run and just let it revert to the standard variable rate. The mortgage agreement isn't finishing, it's just coming to the end of the teaser rate. If he doesn't respond to anything (as in your possible worst case scenario) then nothing changes, you dont have to remortgage, you just have to pay the standard rate as per the mortgage agreement. In the long term you still need to find ways to resolve this obviously. Good luck.

You need to try to resolve the issue amicably - because if this becomes a court issue they would certainly be advised by a solicitor to try to persue a half share of any increase in the properties value (After the 99% deposit you provided has been deducted from the increase)

Most definatly not true assuming you have the tenants in common agreement drawn up properly, as I’m sure you have.

Yes I'm wrong about that bit, sorry !

I'd approach with a view to buying him out. Matter of fact but polite.

"Hi blank, I'm due to remortgage on the house soon. I'm now in the financial position to take full ownership. As such, I propose to buy out your 1% stake at £££, based on its current market value of £££. This would also release you from any liability to make mortgage payments. I will of course cover any fees required for the transfer of ownership."

Out of interest, what happens to his 1% if he dies?

Without knowing the details of your relationship and subsequent fallout, its hard to say. He'd have to be incredibly vindictive to make your life difficult over a 1% stake. Is he incredibly vindictive? If he's named on the mortgage then it's also in his interest to cut ties with you, as he's liable for the payments if you can't pay.