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Thomas
Thomas, Solicitor
Category: Property Law
Satisfied Customers: 7602
Experience:  UK solicitor holding an England and Wales practising Certificate.
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My son and his girlfriend bought a house together the

Resolved Question:

Hi my son and his girlfriend bought a house together the moved in in May but the relationship has now broke down what are there options about the house
Submitted: 1 year ago.
Category: Property Law
Expert:  Thomas replied 1 year ago.
Hi, Thanks for your question. Are there any children of the relationship?What have they discussed about doing about the house so far?Kind regardsTom
Customer: replied 1 year ago.
Hi no children involved they both put £8000 deposit down. Think one move out and the other stay and having name removed from mortgage is my son intitled to his money he put down for deposit they have also spent a lot of money on carpets furniture new bathroom doing garden what is his right please
Expert:  Thomas replied 1 year ago.
Hi, Did they sign a Declaration of Trust stating that each person was entitled to a certain percentage of the equity in the property?Tom
Customer: replied 1 year ago.
No they didn't
Expert:  Thomas replied 1 year ago.
Okay. What ideally would your son like to happen?
Customer: replied 1 year ago.
Well either one of them can afford to live there on there own and pay mortgage and bills but neither want to leave empty handed as put a lot of money into the house
Expert:  Thomas replied 1 year ago.
Thanks. Drafting your answer now. 5 mins please.Tom
Expert:  Thomas replied 1 year ago.
Hi Thank you for your question and patience, I’m Tom and I’ll try to help you.First of all, if they hold the house jointly (as joint tenants) then each person's share woulld pass to the other upon death regardless of any direction made in your Will. If this is not what they want then they should sever the joint tenancy by using Form SEV from the Land Registry (you will have to send it to them and if you have any questions about completing the form you should call their customer service number - they are very helpful):-http://www1.landregistry.gov.uk/publications/?pubtype=49 They will then hold their interests as tenants in common, meaning that their respective shares will pass according to their wills or under the intestacy rules. In the absence of any express agreement there is presumption that the proceeds of sale are split equally, If neither can afford to buy the other out of their share and remortgage in to their sole name then they can either:{C}1. {C}Continue to live their together{C}2. Agree to sell the property now and take their respective shares of the proceeds of sale each upon completion{C}3. If one wants to sell and the other doesn’t then the one who wants to sell can apply to court for an order for sale. A local solicitor would be able to do this for the one wanting to sell and these orders are seldom refused by the Court{C}4. {C}Come to an arrangement whereby one lives their and the other moves out. Before doing this there would have to be a Separation Agreement stating what is happening and what the one moving out would be entitled to from the sale of the property in the future (ie it would state what percentage each would get when they sell the property and also when they anticipate selling the property in the future. They must also be mindful of the early repayment charge on the mortgage. Generally, a mortgage will state that if the property is sold within the first few years the lender will make an additional charge of between 2-3% of the mortgage when they sell the property. They need to check how long the lender can make the early repayment charge for and then factor this in to their review of what is best for them. My goal is to provide you with a good service. If you feel you have received anything less, please reply back as I am happy to address follow-up issues specifically relating to your question. Kind regards,Tom
Customer: replied 1 year ago.
Thank you for your response my sons girlfriend would like to stay in the house and has offered to pay my son his £8000 deposit he paid could u tell me is he entitled to anything else they paid half for everything on all fees paid
Expert:  Thomas replied 1 year ago.
HiBasically he should only agree to that if she is going to remortgage and transfer the property in to her sole name. If she is simply hoping to pay him off but not remortgage/transfer to her sole name then he would be left exposed to mortgage liability if she did not pay the mortgage (even though he may have moved out) and would not have the benefit of any increase in property valuation.They need to do one of the options that I described above, whichever it is.Tom
Customer: replied 1 year ago.
So if he excepted her offer and she took his name off the mortgage and changed land registry into her name is ***** ***** from the house and any liability then thank you
Expert:  Thomas replied 1 year ago.
If she remortgaged to her sole name and (at the same time) he transferred the property to her (after being paid by her) then he would be released from mortgage liability, correct.
Customer: replied 1 year ago.
What if she didn't remortgage but paid him out of her savings but did all the rest is he realised from mortgage liability
Expert:  Thomas replied 1 year ago.
If there is no remortgage then he would remain exposed to mortgage liability. They can't transfer the property in to her name alone without the mortgage lender's consent anyway
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