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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 26069
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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I and my 3 siblings inherited my late mother's house in 2007.

Resolved Question:

I and my 3 siblings inherited my late mother’s house in 2007. All 4 of us appear as Registered Owners on the Land Registry Title. In August 2010, I took out 5 year, interest only, mortgage of £30,000 when purchasing my current residence. This £30.000 represented my potential share of the inherited property and is due repayment in August 2015. Attempts to persuade my siblings to sell the inherited property have been unsuccessful and I am now considering applying to Court for Orders for Possession and sale. As a consequence, my siblings have recently indicated an intention to obtain a loan/mortgage in order to pay me my share. This would be obtained by using the inherited property as security. However, the building society concerned will only provide a loan where no more than 2 names appear on the property’s deeds.
My question is – If I were to transfer my share of the property to 2 of my siblings in order to permit a loan/mortgage to them, is there a legal process/agreement whereby I can be legally guaranteed subsequent payment.
Submitted: 2 years ago.
Category: Law
Expert:  Joshua replied 2 years ago.
Joshua :

Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.

Joshua :

May I ask if there is a reason they wish to use the specific building society in question please?

Joshua :

I hope you will forgive the interruption but owing to the time of day unfortunately I am very shortly about to sign off. If possible I would like to give you an answer to the above before I go as I believe it is relatively straightforward.

Customer:

Not sure - they have clearly made some initial enquiries and are due to meet mortgage adviser next Thursday. Communication with siblings difficult at the moment. I assumed that building society requirements regarding names on deeds was the industry norm.

Joshua :

Sorry our post crossed.

Joshua :

Thanks for the above - just reviewing...

Joshua :

Thanks. The reason I ask the above is that there is no legal reason why a lender cannot lend to more than two borrowers. if the building society in question is not prepared to do so, this is purely a matter of their own lending policy rather than a legal impediment. accordingly, the siblings could source an alternative lender that does not impose such a restriction through mortgage broker.

Joshua :

However, based upon what you say, the intention is to buy out your share in the property using mortgage funds and accordingly the above issue is somewhat academic from your point of view because if all goes as planned, your name will come off the title following receipt of payment in any event. Therefore it is a matter for your siblings rather than you.

Joshua :

In terms of your specific question. Notwithstanding the above, tthe way in which you would structure such a transaction would be that you agree a figure is raised via mortgage by your siblings. In order to do so they agree a loan with the lender and employ a solicitor to act for them and the lender. On an agreed completion date you sign a transfer deed transfering the property and all your interest in it to one or more siblings as they require and in return you receive the figure you agree which will also be specified in the transfer deed you sign.

Joshua :

In other words everything happens simultaneously on the same day - you transfer your interest in the title and receive funds for the transfer on the same day. This would be the normal process for transferring an interest in a property and I cannot see any reason why the proposale should not be as straightforward as any other transferr of equity. The only difficult parts are agreeing the figure your share is worth and the siblings obtaining mortgage finance they are happy with. If both these hurdles can be crossed, the remainder is plain sailing.

Joshua :

Does the above answer all your questions or is there anything I can clarify or help you with any further?

Customer:

Thank you - head off home now ...

Joshua :

A pleasure. Many thank! If I can assist any further as the situation develops please do not hesitate to revert to me

Joshua :


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