Partner bought property with sister, she wants him off mortgage and husband on it

I posted this originally in the wrong section. Apologies.

I am new to this site, have been on it a few times to see if anything similar but can't get anything near to the situation.

My partner bought a property in the boom years with his sister. Neither of them had partners at the time of buying. They both have lived in the property since they bought it. A few years on. the sister got married and her husband moved into the property that she owns with my partner and is giving the wife money to live there so he paying rent I suppose. My partner moved out of the property he owns with the sister before she goT married and is living with me in my property I own and we have a child together. My partner has been paying and is still paying towards his property with his sister. She has now asked my partner to come off the mortgage and for her husband to go on it. She said they would pay the fees legal etc for it to happen and they cant offer anything to my partner as in monetary as they don't have it to give so they think that my partner is just going to say yes, here take my share for nothing.

My partner paid half the deposit and many of the furnishings and still contributes and pays into the property.

My question is, what rights does my partner have in this situation what way would it be resolved as the sister I think thinks they doing him a favour by releasing him from the mortgage and he walks away after putting his own money into it for about 7 years paying the deposit and paying the mortgage for the husband to be just handed a share in a property. God forbid if anything was to append between me and my partner he would have nothing then. Or if the sister and husband split the husband gets half the property. I know he be entitled to half of her half if my partner is still on the mortgage but if it was just the sister and husband on the mortgage after it been handed to him and my partner just walks away giving him the share for free.

If anyone has advice please it be greatly appreciated cos down the line my partner and I would like to buy our own place whenever I can sell my own property, would all of the above affect his credit rating etc.

Any advice be great.

Thank you

One of the first things that crossed my mind when reading your post is that regardless of what your partner has paid into the property by way of deposit and mortgage payments the question is what is the equity in the property.

Is it the case that the two of them put up an equal amount when purchasing the property and contributed an equal amount to the mortgage.

There is another issue and that is can your partners sister and her husband raise the finance to effectively "buy" out your partners share. The bank are not going to let your partner off the hook so to speak for the mortgage without getting a good replacement. The other parties will need to be able to raise a new mortgage to complete their plan.

I presume the property is in joint names and probably 50/50 ownership and if this is the case everything will need to be done by agreement.

Thank you very much Dermot for your reply.

The property would be in negative equity alright,by how much, I am not sure. Think they bought it for 240k and its worth 160k now, I think now, not sure.

They said they havent any money to buy him out. Just that they would pay the legal and bank fees for the husband to go on the mortgage and my partner to come off the mortgage and the money my partner pays towards the property every week would cease and that be it my partner be done and walks away.

yes the property is owned 50/50 and has been from the start and in joint names. Everything was 50/50. My partner is basically renting his room to his brother in law the husband. So the rent he paying was paying the mortgage along with the amount my partner is still paying every week towards the property.

Do you think the sister and husband would have to apply for a new mortgage or would they just be able to put the husbands name on the mortgage when my partners name gets taken off or should I say, if the bank allow it.

my partner a bit clueless when it comes to things like this and doesnt know the questions to be asking.

I dont want him getting a raw deal. Im just making sure he knows his options. would he need a solicitor aswell?

Who to say in a few years time house prices go up the sister and husband sell it at a profit and off they go into the sunset and my partner who slaved away to pay the deposit and make the mortgage payments every month even when he was unemployed and on the dole he made them payments has nothing to show.

Thank you for your reply

The way I see it is without getting technical is as follows:
The property is now worth minus €80k.
It would be a great deal for your partner if it happened.
It will not happen any time soon for the following reasons
His sister is already €40k on her half. She and husband proposing to take on another half and giving effectively €40k more for this half than it is worth.
Lucky for her and her husband but not so fortunate for your partner the Bank will not allow this to happen.
It is crazy to think that any bank would entertain this idea that they could get a mortgage without without substantial savings.
It is not as simple as substituting one name with another in a mortgage situation.
I would have to say that the whole idea is a non runner.
I have a concern about where your partners sister and husband are using this property as a family and how this may develop. You might get a legal opinion on this.
There are a few helpful legal eagles on here from time to time who might point you in the right direction. I certainly am not one so do not panic about this issue.

You need to make a decision if the couple living in the property CAN take over the property. If that IS possible you need to consider whether continuing to pay a monthly fee ( mortgage) is worth the possibility the negative asset will flip and become a positive asset.

As it stands your partner is paying to own a 160k asset and a 240k liability.

I'd bite their hand off IF your partner can be released from the mortgage. That everyone thinks YOU are doing them a favour is the cherry on the cake.

The only downside is if the property regains value. This is seriously in doubt, but if it does - good luck to them, they deserve it for the risk they took. Ye also would gain as ye would stop making payments.

As for the deposit etc. that money is gone and he did get the benefit while living there.

In summary, take them up on their VERY generous offer if possible.

VCMP. I asked how much equity was in the property in post No. 2 and you replied giving the buying price and its current market price. In my post No 4 I assumed that there was a negative equity of €80k. This may not be the case. What I need to know is what is the total current mortgage balance on a property worth €160k. That will give us the current equity situation. What is the joint current monthly repayment for the mortgage. What is the current interest rate.

Given the inadvisable decision to buy the house in the first place, I'm guessing a similarly inadvisable 30 year mortgage with no overpayments. That would leave 197k-212k left after 7 years (depending on interest rates). That would leave OP's partner 18.5k-26k in negative equity.

vcmp said:

She said they would pay the fees legal etc for it to happen and they cant offer anything to my partner as in monetary as they don't have it to give so they think that my partner is just going to say yes, here take my share for nothing.

Click to expand...

Your partner's share of the house+mortgage is worth quite a lot less than nothing. It's a burden, not an asset. In this situation, his sister offering to take this burden off his hands for free is an absolute gift.

vcmp said:

My partner moved out of the property he owns with the sister before she goT married

Click to expand...

He has had less than half the use of the property while paying half the cost. She will keep the exclusive use of the furniture he helped to pay for. To my mind that may entitle him (morally, not legally) to something more than half of the equity (or less than half of the negative equity). If sister+partner can manage it, then calling it quits today sounds about fair - close enough for family anyway. Your partner needn't feel too bad about not offering cash to buy himself out.

Many thanks to you all that have replied to my thread. Apologies for late response. Yous have given my partner and myself great advice and suggestions and we now have an insight into what my partner can do going forward.


The remaining mortgage is 200k and the property be worth 160k so 40k negative equity.

at the time of them buying the property they probably thought that if they sold it they be ok and make profit. Like many other buyers in the boom years getting onto the property ladder.

The next step for the sister is to ask the bank and pending the outcome if it can or cant be changed we will then know and see what each party want to do then.

Hi vcmp

1) If the mortgage is a standard variable mortgage, the figure of €40k negative equity is appropriate, so your husband is getting a great deal.
2) If it's a cheap tracker mortgage, then the real value of the mortgage is less than €200k, so it's a fair deal.
3) If the sister's husband has a good income and good credit record, I think that the lender will allow your husband be replaced by him.
4) If the lender does not allow your husband off the mortgage, you can do a side deal.

The side deal

• Your husband gives up his interest in the property
  
• The sister takes responsibility for the mortgage
  
• Your husband's liability for the loan to the lender does not change, so if the sister stops paying, they will come after your husband.
  
• Your husband may find it difficult to get a mortgage while his name is still on the other mortgage
  
• You should agree the terms of the side deal and then get a solicitor to draw up the formal agreement
  
• The agreement should contain a clause that if they are not in a position to buy you out in full after 5 years, then the husband has a right to sell the house.