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Dear All,
In July 2015 I was given the opportunity to purchase my fathers property (K) by clearing the existing mortgage and owe him 120k. But this means I also have to share this with my sister (share the benefits/income & debt etc). At the time my sister had no money, so I cleared the mortgage of 67k and agreed that she would give me this asap.
I spent 6 months renovating, which means a lot of time, blood, sweat and tears. No money or help from my sister, and without any bitterness towards (it as she has other responsibilities and i knew this will be the case from the beginning) we came to an agreement that I would buy her out.
So heres the breakdown
She instructed a friend of her husband to survey the property and give a rough valuation, which came back as 750k
We owe my dad 120k as part of the purchase agreement
And she still owes me 33.5k
So we agreed on 325k will be her share
Of course i don't have that money so we agreed I would buy a property that i will pay for but she will own.
The new property (E) cost 235k and we agreed that I will clear the mortgage first and then give her the remainder of the 325k which is 90k
She pays for legal fees and stamp duty and I will pay for the mortgage fees etc
I just wanted some advice around creating an agreement, we didn't want to fork out for solicitors to do this, so agreed to compile an agreement together that would include
Whilst the new property (E) is still under a mortgage for she will be joint director on the company that the current property (K) is owned by
To take her off as a director I get a will and write that she is gets to clear her mortgage with my estate should anything happen to me.
I adhere to the mortgage payments
She only gets the 90k once the mortgage is cleared
The mortgage has been approved and things are in motion now, its a huge relief but at the same time its scary. We both are quite sensible and tend to look out for each other but for the sake of our individual security I would like some sort of agreement in place that would be legal and like a contract
Am I going the right way about this? What do i need to make sure I do? Include in the agreement?
Any links or pointers?
Any information/help or advice is much appreciated.
Thank you for reading and I look forward to your response.
MyRights
In July 2015 I was given the opportunity to purchase my fathers property (K) by clearing the existing mortgage and owe him 120k. But this means I also have to share this with my sister (share the benefits/income & debt etc). At the time my sister had no money, so I cleared the mortgage of 67k and agreed that she would give me this asap.
I spent 6 months renovating, which means a lot of time, blood, sweat and tears. No money or help from my sister, and without any bitterness towards (it as she has other responsibilities and i knew this will be the case from the beginning) we came to an agreement that I would buy her out.
So heres the breakdown
She instructed a friend of her husband to survey the property and give a rough valuation, which came back as 750k
We owe my dad 120k as part of the purchase agreement
And she still owes me 33.5k
So we agreed on 325k will be her share
Of course i don't have that money so we agreed I would buy a property that i will pay for but she will own.
The new property (E) cost 235k and we agreed that I will clear the mortgage first and then give her the remainder of the 325k which is 90k
She pays for legal fees and stamp duty and I will pay for the mortgage fees etc
I just wanted some advice around creating an agreement, we didn't want to fork out for solicitors to do this, so agreed to compile an agreement together that would include
Whilst the new property (E) is still under a mortgage for she will be joint director on the company that the current property (K) is owned by
To take her off as a director I get a will and write that she is gets to clear her mortgage with my estate should anything happen to me.
I adhere to the mortgage payments
She only gets the 90k once the mortgage is cleared
The mortgage has been approved and things are in motion now, its a huge relief but at the same time its scary. We both are quite sensible and tend to look out for each other but for the sake of our individual security I would like some sort of agreement in place that would be legal and like a contract
Am I going the right way about this? What do i need to make sure I do? Include in the agreement?
Any links or pointers?
Any information/help or advice is much appreciated.
Thank you for reading and I look forward to your response.
MyRights
