Clare, Following are the relevant clauses from the agreement:-
*In December 1998 it was decided to purchase the property under the local council's Right to Buy policy. Valuation at the time was £36,800 and Frank & Brenda received a 60% discount.
*The main reason for purchase was for the chidren to offer financial assistance to Frank & Brenda as they were pensioners and finding the day to day finances a struggle. All the children were approached and asked to take up a share of the mortgage.
*Subsequently a mortgage was arranged for £20,000 with Alliance & Leicester Building Society and was split as follows:-
£14,720 (i.e. the discounted portion of the house value taken up by the children in the proportions below).
£5,280 (an additional amount taken up by Frank & Brenda to obtain a new car & reorganise their finances).
*Since all other children had mortgages, for simplicity it was decided that John should be the only member of "the Children" to appear on the mortgage. Frank & Brenda had to appear under the Right to Buy
but their purchase was strictly limited to the £5,280 detailed above.
*The £14,720 was taken up in the following proportions:-
Mark 20% (2), Lyn 10% (1), Lesley 20% (2), Alison 20% (2), John 30% (3)
*Lyn decided she could not take up the full share and settled for 10%
Vickie decided she could not contribute at all.
Mark, Lesley & Alison increased their share by as much as they could afford.
John increased his share to take up all the residue.
*Any decisions regarding the property (sale, renting, raising finance etc.) would be by simple majority using the proportions each child has, as their voting entitlement, as shown above.