Removing name from house & right of share

[aj84]

Hi all,

 

Not sure if this belongs here or another sub-forum - this is on behalf of a close friend so I might act as a go-between to get any further details required.

 

Mortgage remaining: 280k

Valued: Circa £500k

Term left on current mortgage: 12 months

Person 1: Main owner of house but Close to retirement

Person 2: Son of Person 1 and on title + mortgage

Person 3: Another son who pays towards mortgage but no name on house or mortgage

 

Long and short of it is Person 1 has lived in this house for 30 years+, constantly had financial problems and lived pay-cheque to pay-cheque and when the current mortgage term started 4 years ago, she could not get a mortgage on her own.  Person 2 therefore stepped in and put his name on the title and mortgage however has not paid a penny towards it in the 25 years or so he lived there or the 4 years he has had his name on the title + mortgage.  Person 2 also made Person 1 remortgage 10 years ago to take a chunk for his studies - also none of it paid back.

Person 3 on the other hand has paid her way monthly without fail for 18 years.

 

Fast forward to 2021 and the term is due to end, Person 1 knows she cannot get a mortgage on her own due to age/retirement 

Person 3 wants to step in to take over the property altogether (and can afford it)

Person 2 ... I'm sure you can guess where this is going... wants a chunk out of the property.

 

Options are from what I can gather...

1. Sell-up, get the 200k odd from it and put it down as a deposit in a downsized property with any extra Person 3 taking on I suspect as a mortgage

2. Re-mortgage on Person 2 only (not an option)

3. Re-mortgage on Person 3 - an option but only if Person 3 is getting full title

4. Do nothing, probably default and there is no winner here as Person 1 and 2 have a default on their credit, house is repossessed and person 1 is homeless.

 

So questions are...

 

1. Does Person 2 while on title, have any rights to the property in terms of value?

2. On the basis of the above being yes, is there a way Person 1 and/or 3 remove this right on the basis he has only ever been a name and no financial benefit?

3. Are there any other options?

 

This does indeed sound like internal family politics driven by Person 2 greed but this is at no concern to the rest of the family, the primary concern is Person 1 has a roof and does not mind relocating and downsizing especially as they're on their own now

 

Thanks in advance

 

 

 

[BankFodder]

I would say that there is a constructive trust in favour of person number three and I'm not sure of how it's all done but there is a way of making some unilateral registration of their interest against the property. They want to look into doing that now.

In terms of the entitlement of the "legal" owner – it may be that that person simply is a trustee and has no beneficial interest.

I think this is one for professional legal advice from a land law specialist