........we never draw up a formal Deed of Trust.
Soon after the purchase, my sister told me that she could not afford to make the monthly payments in full, and asked for my help again.
I was furious but I still agreed to help by making regular payments equal to half the monthly payments to her. I did this for almost three years!
My sister and I are no longer in good terms! She is now planning to sell the flat but is still claiming that she owns the flat outright. She is totally disregarding the fact that I had been paying for almost half the mortgage for all this time.
My questions are:
(1) Am I correct in assuming that my sister has broken our verbal contract by not making all the mortgage payments by herself?
(2) Can I legally claim half (or part) ownership of the property?
Thanks in advance.
Hi Alice, Thank you for your reply.
Just a quick note on my second question if I may.
Indeed there is a hand written agreement between my sister and I whereby I agreed to her 100% share ownership. This is despite the fact that the mortgage was in both names. However, is it enough for me to now claim 50% share of the equity if I have been paying for half the mortgage payments? .... in other word, would I have a case in court if she makes an application under ToLATA?
Actually there is no formal agreement as such. We simply wrote a few lines by hand on the solicitor's Purchase Questionnaire under the heading "Any other matter:" as follows:
“We have taken out the mortgage in my name (name supplied) because my sister (name supplied) could not get a mortgage on her own, so I am on the property by name and do not own any shares in the property as my sister is going to be paying the mortgage and will own 100% of the property".
Almost! There is no formal Deceleration of Trust, but the property is in both our names.
Note: My sister paid for the deposit, and I secured the mortgage with the lender. We both have been paying the mortgage.
Yes it is.
Purchase price: £265,000
Current value: £400,000
Mortgage outstanding: £178,000
Yes I do. However, she has had sole use of the property throughout whilst I had to pay half the mortgage payments. Furthermore, It is through my ability to secure the mortgage that she managed to buy the property.
Thanks for that. Just a last question: If she takes it to court would I have to pay for either side costs?