Joint house purchase x 3
Discussion
All this new about pre-nups got me thinking:
I am seriously considering buying a house with my outlaws (wife, her father, mother and brother, no kids between. We all get on well and have lived together before for various periods of 3-6 months in a quite confined bungalow. We are thinking about selling our 3 houses, pooling the money and buying one larger house and being mortage free. We have found a house capable of being notionally divided so we all have our own areas but share the house.
The concern is what happens should the brother in law decide he wants out at any point or has a claim on his assets?
He has a long term penniliess girlfriend with 2 kids and expensive tastes in Range Rovers and horses who has refused his offers of marriage in the past. Call me sceptical but she may reconsider when the lifestyle is the country lady she obviously fancies herself as.
We can afford to buy the house without him(just) so we wouldn't have to buy him out of his share but as/when the parents pass on and ghegets a 15% share of the house, how would we protect ourselves against her marrying him and wanting to walk away 12 months later with half his share of the house and requiring us to sell up? We wouldn't have the money to buy him out of 15%, especialy if house prices had risen.
Is there a pre-nup type thing we could have preventing him forcing sale, and the same for her having no claim on his assets prior to marriage and being unable to force a sale?
I am seriously considering buying a house with my outlaws (wife, her father, mother and brother, no kids between. We all get on well and have lived together before for various periods of 3-6 months in a quite confined bungalow. We are thinking about selling our 3 houses, pooling the money and buying one larger house and being mortage free. We have found a house capable of being notionally divided so we all have our own areas but share the house.
The concern is what happens should the brother in law decide he wants out at any point or has a claim on his assets?
He has a long term penniliess girlfriend with 2 kids and expensive tastes in Range Rovers and horses who has refused his offers of marriage in the past. Call me sceptical but she may reconsider when the lifestyle is the country lady she obviously fancies herself as.
We can afford to buy the house without him(just) so we wouldn't have to buy him out of his share but as/when the parents pass on and ghegets a 15% share of the house, how would we protect ourselves against her marrying him and wanting to walk away 12 months later with half his share of the house and requiring us to sell up? We wouldn't have the money to buy him out of 15%, especialy if house prices had risen.
Is there a pre-nup type thing we could have preventing him forcing sale, and the same for her having no claim on his assets prior to marriage and being unable to force a sale?
Busamav said:
I believe it is a Deed of trust that is required , drawn up of course by a knowledgable solicitor.
Indeed it is, pardon the pun. I've had quite a few drawn up between my father and myself on the properties and land we buy, mainly to protect his investment when I get married. Quite a simple process really.camp freddie said:
Busamav said:
I believe it is a Deed of trust that is required , drawn up of course by a knowledgable solicitor.
Indeed it is, pardon the pun. I've had quite a few drawn up between my father and myself on the properties and land we buy, mainly to protect his investment when I get married. Quite a simple process really.This kind of s
t happens all the time round here where I live in Norfolk. Brothers, Sisters, Cousins, Mothers, fathers, you name it, they all co-habit seemingly very happily. You go for your life mate. No need to give us the old 'we can all live mortgage free' line, we won't judge you here at Pistonheads........
t happens all the time round here where I live in Norfolk. Brothers, Sisters, Cousins, Mothers, fathers, you name it, they all co-habit seemingly very happily. You go for your life mate. No need to give us the old 'we can all live mortgage free' line, we won't judge you here at Pistonheads........Jonnas said:
This kind of st happens all the time round here where I live in Norfolk. Brothers, Sisters, Cousins, Mothers, fathers, you name it, they all co-habit seemingly very happily. You go for your life mate. No need to give us the old 'we can all live mortgage free' line, we won't judge you here at Pistonheads........
She is a very attractive goat!t happens all the time round here where I live in Norfolk. Brothers, Sisters, Cousins, Mothers, fathers, you name it, they all co-habit seemingly very happily. You go for your life mate. No need to give us the old 'we can all live mortgage free' line, we won't judge you here at Pistonheads........Mental, I did it 19 years ago.
6 months later I had to buy out or I'd have walked out. If I hadn't been able to raise the cash to buy out, or the others hadn't agreed to sell, or hadn't been able to raise the cash to buy me out had that been the way, I don't know what I'd have done - the whole situation took years off my life I'm sure. Unless you have an annex/locked door/guaranteed privacy do not go there and even then, just don't.
6 months later I had to buy out or I'd have walked out. If I hadn't been able to raise the cash to buy out, or the others hadn't agreed to sell, or hadn't been able to raise the cash to buy me out had that been the way, I don't know what I'd have done - the whole situation took years off my life I'm sure. Unless you have an annex/locked door/guaranteed privacy do not go there and even then, just don't.
Risk / Benefit analysis? Just to save some mortgage interest? esp with rates as they are at the moment?
We know a couple who did something similar, in fact very similar. Went completely tits up when the mother needed to go into care and the issue of paying for care home kicked in. The father was not exactly self sufficient as mother had always done all the cooking/ shopping/ finances etc so the sister decided she wanted out as she didn't want to be lumbered with looking after him etc etc. As I said, just to save some mortgage interest!
I'm afraid I'm with "Dont go there"
Chris
ps Did you get my e-mail re CIPD?
We know a couple who did something similar, in fact very similar. Went completely tits up when the mother needed to go into care and the issue of paying for care home kicked in. The father was not exactly self sufficient as mother had always done all the cooking/ shopping/ finances etc so the sister decided she wanted out as she didn't want to be lumbered with looking after him etc etc. As I said, just to save some mortgage interest!
I'm afraid I'm with "Dont go there"
Chris
ps Did you get my e-mail re CIPD?
I don't have many concerns about the living together bit. We can clearly divide the house into 3 now and into 2 when the parents go, along the lines of the % ownership too which may avoid future friction. The house was built in 2 periods with the only connecting door on the ground floor.
The motivation isn't financial, it is practical/emotional in the sense that we want the family close as there are no grandchildren and we have always agreed that in the twlight years bro would come to live with us if he was still single and the space was right.
My main concern is a change in circs such that bro wants out. His share intially would be small, perhaps 10-15% which at a push we could buy at current rates but when he inherits it would rise to around 25% with my wife and I retaining the 75%.
I hadn't considered the care home thing in detail as we had assumed that the outlaws would stay with us until the end as between us we were comfortable with taking some of the caring role if need be. Signs are their egneral health would give up before their marbles were lost.
Chris, I have now mailed you about the CIPD. Sorry for the dealy.
The motivation isn't financial, it is practical/emotional in the sense that we want the family close as there are no grandchildren and we have always agreed that in the twlight years bro would come to live with us if he was still single and the space was right.
My main concern is a change in circs such that bro wants out. His share intially would be small, perhaps 10-15% which at a push we could buy at current rates but when he inherits it would rise to around 25% with my wife and I retaining the 75%.
I hadn't considered the care home thing in detail as we had assumed that the outlaws would stay with us until the end as between us we were comfortable with taking some of the caring role if need be. Signs are their egneral health would give up before their marbles were lost.
Chris, I have now mailed you about the CIPD. Sorry for the dealy.
2 cousins of mine, who are brothers, bought a house with 2 mates when they were younger and it was all agreed in a trust deed.
A couple put more money in that others, all fees/expenses for work was shares evenly, and when 1 of my cousins decided to get married and needed to sell his share, the other 3 remortgaged and bought him out, again, all done with a trust deed.
It worked well for them and enabled them to get a property they wouldn't have been able to afford otherwise.
I know your case is different, but the trust deed is the same.
Good luck! I know if I had to share a house with my M-I-L, lovely, thoguhtful and helpful though she is, I'd still go mental.
A couple put more money in that others, all fees/expenses for work was shares evenly, and when 1 of my cousins decided to get married and needed to sell his share, the other 3 remortgaged and bought him out, again, all done with a trust deed.
It worked well for them and enabled them to get a property they wouldn't have been able to afford otherwise.
I know your case is different, but the trust deed is the same.
Good luck! I know if I had to share a house with my M-I-L, lovely, thoguhtful and helpful though she is, I'd still go mental.
Edited by 5potTurbo on Friday 22 October 10:24
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