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Ask Clare Your Own Question
Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 34589
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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I have paid £50,000 deposit/equity into a Mortgaged property

Resolved Question:

I have paid £50,000 deposit/equity into a Mortgaged property that I have joint tenancy on. Another person wants to take on the joint tenancy, can claim my full deposit or is the cost related to the property valuation as it currently stands?
Can I claim a proportion of rent or my share of the joint tenancy? If so can claim back rent?
Submitted: 1 year ago.
Category: Law
Expert:  Clare replied 1 year ago.

Thank you for your question

My name is Clare

I shall do my best to help you but I need some further information first.

For clarity - you own a property with someone else.

Is the other person willing to agree to this?

Customer: replied 1 year ago.
I own the property (house) with 1 other person.
Both of us wish to remove my name from the deeds in exchange for a cash settlement. I put £50.000 deposit down on the original purchase. Am I legally entitled to recover this amount or is any settlement dependant on the current valuation of the property?
Customer: replied 1 year ago.
Expert:  Clare replied 1 year ago.

How much is the house worth and how much is outstanding on the mortgage?

Customer: replied 1 year ago.
Worth approx £85.000 with approx. £30.000 - £40.000 remaining on mortgage, not sure of exactly how much as I do not pay it.
Expert:  Clare replied 1 year ago.

Why has the property dropped in value?

Has the mortgage company agreed to release you?

Did you protect your investment with a Declaration of Trust when you purchased the property?

Customer: replied 1 year ago.
The property was bought in 2008 when the value was artificially high.
The mortgage company will release me as a third party wants to take it on with other mortgagee.
Unfortunately no, I did not protect my investment at the time.
I have been offered £40.000 to come off the deeds and mortgage, it is looking like it maybe the best option.
Expert:  Clare replied 1 year ago.

Are you sure about the current value?

Customer: replied 1 year ago.
I'll check it, but I believe prices have dropped in my area.
Expert:  Clare replied 1 year ago.

It is worth checking as otherwise you are correct - the offer of £40,000 is indeed the best that you can hope for I am afraid

I am afraid that you cannot claim any back rent - just your share of the equity

Please ask if you need further details

Clare and other Law Specialists are ready to help you