Right of Residence issue

C

CavanIrish

Registered User
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7
Hi

My parents got into some serious debt when I was in my mid-20s (my other siblings were tied up financially). The best option at the time (or so I thought) was get a mortgage and buy their home, granting them a right of residence. The verbal agreement was that they would pay the mortgage for me while I carried on renting. They have never once paid the mortgage which left me paying it and we have been estranged now for over 15 years with no contact at all. I have been renting a house with my husband along with paying the mortgage on my home. This was fine up until last year when the house I have been renting with my husband for 13 years was taken over by a receiver. This came out of the blue for us as we have consistently paid our rent on time for the duration of our occupancy. The receiver is now trying to increase our rent by almost €400 a month which we cannot afford to pay. We have proposed an increase of €200 but they are very slow to agree to this. There is literally nothing to rent in our area. I contacted my local TD to get assistance but that door was closed in my face because I have an 'asset' in the house I own. I contacted a financial advisor about releasing equity in the house I own to enable us to have a deposit for a house and enable us to get a mortgage to buy a home of our own but they said that the bank won't agreed to this because my parents are pensioners. I don't know where to turn next so would appreciate any advice.

Thanks in advance.
 
CavanIrish said:
They have never once paid the mortgage which left me paying it and we have been estranged now for over 15 years with no contact at all.
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You have not spoken to your parents in 15 years. In this time you have paid in full a mortgage on the house that you own. They continue to occupy the house and you have no access to it.

Do I understand this correctly?
 
Yes, this is correct :(. It wasn't a huge issue for me because I always assumed the house would be a pension plan for me but now I'm financially struggling myself and, because I've paid the 30 year mortgage for so long now (almost 18 years), I don't want to stop paying it because I'm practically 2/3 of the way through it. My parents are in their 80s now.
 
NoRegretsCoyote said:
You have not spoken to your parents in 15 years. In this time you have paid in full a mortgage on the house that you own. They continue to occupy the house and you have no access to it.

Do I understand this correctly?
Click to expand...
Yes, this is correct :(. It wasn't a huge issue for me because I always assumed the house would be a pension plan for me but now I'm financially struggling myself and, because I've paid the 30 year mortgage for so long now (almost 18 years), I don't want to stop paying it because I'm practically 2/3 of the way through it. My parents are in their 80s now.
 
Have you approached the bank and asked for an interest only option, or extend the term, my guess is you are mid 40's so plenty road left yet.
What is the Loan to Value like, you may also get a reduced interest rate, or even move the mortgage.

It's you ability to pay is the key point here, the security is not enforceable due to your folks being in it

Did you give a personal g/tee with the mortgage?
I had to when I did something similar
 
I don't think there's anything you can do about the investment property. You've given your parents lifetime residency; so I think you have to wait until they pass away to regain occupancy and realise your investment.

I'm sorry you are estranged from your parents; for your own sake think about mending those fences. You still have a lifetime to live, they don't.

The receiver is now trying to increase our rent by almost €400 a month which we cannot afford to pay.
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I take it you are not in an RPZ?
 
Branz said:
Have you approached the bank and asked for an interest only option, or extend the term, my guess is you are mid 40's so plenty road left yet.
What is the Loan to Value like, you may also get a reduced interest rate, or even move the mortgage.

It's you ability to pay is the key point here, the security is not enforceable due to your folks being in it

Did you give a personal g/tee with the mortgage?
I had to when I did something similar
Click to expand...

I haven't approached the bank, went down the financial advisor route but will look into it. There is good equity in the property. Thank you.
 
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