Joint Mortgage problems

apatia77

apatia77

apatia77

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Joined
25 Mar 2005
Posts
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I bought a property with my brother just over 2 years ago, there are some complications now as my brother wants to buy me out/sell the property as he no longer wishes to live together due to some personal reasons.

He offered to buy me out for certain amount but I've refused (I know he doesn't have this much money and that he can't get the whole mortgage himself only but he won't give me any further details so I suppose he's got someone to buy this property with).

Now he said he was going to take me to court, can courts give him an order forcing me to sell?

He also gave me "Notice of Severance" letter but I am confused to what it means.

I might have to change my mind and agree him to buy me out but I don't think I will get the money I deserve.
 
Dr House said:
Is he offering you a fair price?
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Well, he is offering my money I've invested so far, I need to calculate it though, difficult to say as we have invested in modernising the place and furniture. I don't think also that the property price has changed but you are never sure nowadays.

I only don't want to move out as I really like living here, if I am forced out then back to renting/sharing which really does suck.
 
He needs to offer you market value, not what you've invested.

When you took out the mortgage do you remember the share you specified on the deed? It's a common mistake to assume PersonA put in 80% of the investment therefore 'owns' 80% of the property. It's not true.

The figures put on the mortgage information in terms of common share is the important piece, not the investment schedule.
 
Sounds like he's trying to bully you out of your home. If he is being a sneaky git he could also be doing you out of 1000's by not giving you a fair price based on the properties current value.

I think you need to get some proper advice from a solicitor asap, as it doesn't sound like you know whats happening to be fair. That or tell your mum on him :)
 
apatia77 said:
He also gave me "Notice of Severance" letter but I am confused to what it means.
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Doesn't this just mean that instead of you both being joint owners you will now own a percentage of the property based on the Trust Deed, e.g 60:40?

Because if it does I don't really see how this would be helpful in forcing you to sell?

Disclaimer: IANAL
 
He can't force you to sell your share to him but you can't stop him from wanting to sell the property. So if you want to keep your investment in the property and carry on living there with him there is nothing he can do.
 
It is very hard for someone to force you to sell and can cost a few grand by the time you go through all the court proceedings so it wouldn't really be in his favour to go down this route as it will cost him (and you) a fortune. My ex tried this one on me, even told me he had seen a solicitor who had said that he could force me to sell because he had made me a reasonable offer. (In his eyes) I laughed at him and wished him the best of luck. That was the last I heard on that tall tale.

Your brother will just have to make you a better offer or sit tight.
 
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vonhelmet said:
Find a lawyer.
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this

get some legal advice

Most places will do free legal advice one day a week. Find your mortgage out so you have it to hand,

As far as i'm aware, assuming you have joint ownership, he needs to offer you 50 % of current market value. You then obviously use this to pay off your half of the debt, leaving you 50 % of the equity in the property to move on elsewhere..
 
Get an estate agent (or a few) round to value the property and see what your investment is now worth. Fittings and furniture are different
 
Why not sort the problems out with your brother. Life is too short to be having grief like this with a family member. Did you sleep with his GF or something :p
 
Joint owners, well he can offer to buy you out after you have had the property valued.
Now you can have the equity amout as the varible value as you both know what you put into the property, so you need that back plus the market value if he buys you out.
The equity is normal split after the property has been sold as you will have sale proceeds from which you pay back the loan to the bank for the property.

All this advice is general and can not replace professional advice from a Legal professional.
 
We paid 50% each for the deposit and so far any fees/bills/anything we split 50/50 between us.

Thanks for the advice guys, I definitely need to get the property valued again.
 
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