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Ask Clare Your Own Question
Clare
Clare, Solicitor
Category: Property Law
Satisfied Customers: 34236
Experience:  I have been a solicitor in High Street Practise since 1985 with a wide general experience.
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My partner owns a house with his sister and she is refusing

Customer Question

My partner owns a house with his sister and she is refusing to pay half the mortgage each month. We have offered to buy her out but is refusing to take the money what can we do?
Submitted: 4 months ago.
Category: Property Law
Expert:  Clare replied 4 months 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

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

Who lives in the property?

Customer: replied 4 months ago.
We recently had the property valued for 307,000. The outstanding mortgage is 117,000 however as the house was bought on a goverment scheme the government owns 30% so if sold 30% has to go back to government. She wanted to sell 2 years ago so my partners step dad helped us out and she had £20,000 but is now saying that's not enough and is refusing to sign over anything (nothing was in writing, parents don't want to get involved) We have offered her 17,000 on top of the 20,000 she's already had.Myself and my partner lives in the house.
Customer: replied 4 months ago.
We told her that if she wanted to have half of the profit she needs to pay as she hasn't paid for anything for two years but is saying that, she won't pay half the mortgage as the only reason we have low rates is due to the fact she's on the mortgage even though we have tried to remove her.
Expert:  Clare replied 4 months ago.

How much would you have to pay back to the Government if it was sold tomorrow?

Can you now obtain her release from the mortgage?

Customer: replied 4 months ago.
If it sold for what we had it valued at then which was £307,000 then the government would take £92,100.
Customer: replied 4 months ago.
We only had valuation done a couple of weeks ago
Expert:  Clare replied 4 months ago.

Can you obtain her release from the mortgage?

Customer: replied 4 months ago.
I'm not to sure what that means. Sorry but she is refusing to come off the mortgage.
Expert:  Clare replied 4 months ago.

Just to be clear - you could remortgage immediately if she would agree?

Did she pay towards the deposit or purchase costs at all?

has she ever lived at the property?

Customer: replied 4 months ago.
we could remortgage immediately.No she didn't pay towards to deposit costs because they did the government scheme for the deposit.No she has never lived in the property.
Expert:  Clare replied 4 months ago.

Right - has she ever paid anything at all - and what was the agreement when the property was purchased

Customer: replied 4 months ago.
The property was rented out for a few years while they were renting it out anything which needed to be sorted out they paid 50/50 but since she was given 20,000 over 2 years ago when she wanted to sell, she has not had anything to do with the house at all. Until we wanted to take her off the mortgage that's when she refused.There wasn't really any agreement when the property was bought.
Expert:  Clare replied 4 months ago.

There is currently more than £80,000 equity in the property if it was sold immediately

Your sister in law has already received £20,000 and you have offered a further £17,000 - making about £4,000 short of a full 50/50 split - but she has had the benefit of the £20,000 fir the last two years

The fact that she has not lived in the property and you have means that it is not unreasonable that you should have been paying the mortgage without contribution from her.

Arguably if you offered a further £20,000 rather than £17,000 then the offer would be on the generous side of reasonable whilst your current offer is on the low side.

If she still will not agree then the only legal option available is to threaten to apply to the court to force a sale of the property - and claim the costs of the applictaion from her.

Within that application you can negotiate a buy out by you and your husband - but that is negotiable rather than something that the court can Order against the wishes of your sister in law.

I hope that this is of assistance - please ask if you need further details

Customer: replied 4 months ago.
What if she doesn't agree with the valuation? She is saying that the house is worth more that what it has been valued at?