The house is £360k now. Son put in half of purchase price 4 yrs ago. Tracey put in £50k interest only mortgage and put in remainder.
Plan: simultaneous solicitor-led transfer of Tracey's title to son, we pay her half value of houseand she pays off the mortgage. She will take son nearer work. Son will pay £27 pw required legally but will add £23 to help with child care in holidays. He earns little as you see from maintenance. She's working 3 days a week psychotherapist - was on £35k full time. Son's boy Jack is 14 just going into GCSEs and needs stability and staying in his home. Tracey is buying a 3 bed house she admits she can barely afford. It needs repointing, sorting collapsing kitchen ceiling. She wanted son to pay his offered £23 extra a week in an up front amount ie 14 years' worth = £16,744. He doesn't have that kind of money but because she's buying a house that's a bit beyond her means, she wants it somehow. We're an honest, straightforward family and practical. We can see the solution: buy a 2 bed house and work your way up. Help, please.
No, the mortgage is in both names, the only way it could be taken out. Our property solicitor will ensure it is paid off via him, he will hold the money and release the remainder to her once it is paid off.
I tried to keep out of their arrangements till now but I think she's buying at around £220-£225k. There would be cheaper 2 bed houses at about £190-£200k. Her actual need is a bedroom for her and one for Charlie but she wants (naturally) something larger with a garden.
I'm writing Clare, because my son is severely dyslexic. Jack is too and dysgraphic! They are both finding this very difficult because they like life to be straightforward, especially Jack of course.
no, verbal, because by buying her share she could move faster and more easily and have £125k+ cash. It was Tracey's mortgage, always seen as hers, my son's name being a mtge co obligation, nothing more. She always paid the interest, my son had nothing to do with it therefore the intention was always clear. Tracey agreed to all of this and we set up the expected transfer of title/land registry, the repayment of the mortgage and her cash payment. She found a house, we awaited instructions to pass £175k to our solicitor to hold - no exchange has taken place so far. Now she's discovered she's been over-ambitious re the house and wants more money.
Thank you very much Clare for your help. My rating was due to the fact that it took several occasions to answer questions which perhaps could have been asked in one go.