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Clare
Clare, Solicitor
Category: Property Law
Satisfied Customers: 33545
Experience:  I have been a solicitor in High Street Practise since 1985 with a wide general experience.
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I have owned my house mrgage with a frined for the past 5 years

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I have owned my house mrgage with a frined for the past 5 years & have been running a a childcare business from the house with a business partner. Since October last year we bought our friend out & my businses partner & I are now 50/50 ownership of the house. The working relationship has however become untanable & in febraury 2014 we verbally agreed I would buy her out however needed to save uptopay her her share of the equity. She has since sent me a letter saying she now longer wants to sell & is think of moving into the house. I lived & paid the morgage of this house for the past 5 years & she has only contributed to rental space of the working area. Before i go to a solicitor I need to know what are my rights living here with my fiance & also nowehere does it show she has paid anything towards the house.
Submitted: 2 years ago.
Category: Property Law
Expert:  Clare replied 2 years ago.
Hi
Thank you for your question
My name is Clare
I shall do my best to assist you but I need some further information first.
How much is the house worth and how much is outstanding on the mortgage?
Is the property actually held in joint names?
How was the deposit funded?
Clare
Customer: replied 2 years ago.

Hi Clare,

1. The house in now worth +-£500 000.000

2. There is about £302 000.000 outstanding.

3. Yes it has been held in joint names since October 2013. Prior to this the mortgage was on mine & the previous owners name.

4. The deposit was paid by previous owner (friend) & myself. With the current new partner since October 13 there was no contribution as a deposit. We re-morgaged the house for £312 000.00 & paid £50 000.00 to the old partner to buy him out. I personally also took an extra equity of £23 000.00 from the re-mortgage.

Hope that helps?

Expert:  Clare replied 2 years ago.
Hi
Is there any written agreement setting out the basis on which the property would be shared?
Clare
Customer: replied 2 years ago.

Hi Clare,

No there is no written agreement. Only in the deed it states both our names & on the mortgage.

Olga

Expert:  Clare replied 2 years ago.
Hi
Did you have a written deed regarding the Partnership?
How many bedrooms are there?
Clare
Customer: replied 2 years ago.

Hi,

No - We both self employed running our own businesses seperatly from the premises. There is no partnership agreement. I invoice her monthly to rent the space she uses along with the all the bills & running expenses which is paid by myself.

Olga

Expert:  Clare replied 2 years ago.
Hi
Sorry - there are two separate businesses involved?
How many bedrooms are there?
Clare
Customer: replied 2 years ago.

Hi,

We run the childcare business together however we are both self-employed & do individual tax returns at the end of each year. We dont not have a partnership. I live in the house with my fiance.

There are 3 bedrooms, 1 dinning room, 1 kitchen, 1 bathroom. I use bedroom upstairs & 1 bedroom as my lounge. The rest of the house is used a the childcare business.

Olga

Expert:  Clare replied 2 years ago.
Hi
How soon can you buy her out?
Clare
Customer: replied 2 years ago.

We are ready to buy her out in the asap.

Expert:  Clare replied 2 years ago.
Hi
Have you also agreed to take over her business?
Clare
Customer: replied 2 years ago.

No we don't want to take over her business at all.

Expert:  Clare replied 2 years ago.
Hi
I am sorry - for clarity.
You and this person own a property subject to mortgage.
From this property you each run separate businesses.
In addition you live at the property
The mortgage is in joint names but in fact you invoice this person and she pays you and then you pay the mortgage BUT the mortgage is in joint names
Is that correct?
How much have you raised to buy out her share of the property?
Clare
Customer: replied 2 years ago.

Hi,

Yes on all the above.

We have raised around £80 000.00 to £100 000.00

Customer: replied 2 years ago.

Sorry not subject to mortgage - We already have the mortgage & I can get anew mortgage to buy her share of the house from her.

Expert:  Clare replied 2 years ago.
Hi
Will that also release her from the existing mortgage?
Clare
Customer: replied 2 years ago.

Tha is if she accepts it. In February we mutaully agreed I would buy her out with my fiance. We agreed that it would take a few months to save up enough money to but her part of the house. We have saved up enough now where we think it is possible to do. However since we agreed the terms verbally & she has not paid me for any of the bills of the running of the business which I have already given her.

Last week letter from her saying she is just paying the mortgage bacjk dated to April (which is the begining of the new tax year) What normally happend as I explained was I would give her invoice for rental of the area in the house for running her part of the business along with the the food & utility bills which I paid & split with her. She is now claiming she wants to move into the house & that we a have to open a a business on both our names. I am not willing to do that as the relationship is not at all good to be partners. I need to know what my rights are to live at the house since i have been living & paying the mortgage all by myself fro the past 5 years? Can she move in with her son & mother? What options do i have legally to get finish this as she keeps changing her mind which. Legally what do you think I should do?

Expert:  Clare replied 2 years ago.
Hi
The fact that there was no clear written agreement between you as to what the terms of the arrangement was is a major problem.
As a joint owner of the property she is indeed entitled to move in if she so wishes - unless you are able to exclude her as a result of her violence.
However she cannot force you to open a joint business with her
You do have the option of forcing the immediate sale of the property.
I appreciate that this is not what you wish to do - but it will mean that she has to negotiate with you and accept that the current arrangement cannot continue
The best way forward is to agree to go to mediation with her
http://www.adrgroup.co.uk/
The most likely position is that she is trying to force you to pay her more - and it may well be worth considering it
I know that this is bad news and I am sorry for that - please ask if you need further details
Clare
Clare, Solicitor
Category: Property Law
Satisfied Customers: 33545
Experience: I have been a solicitor in High Street Practise since 1985 with a wide general experience.
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