Investment property - mortgage/deeds in diff. names

edited....

In the eyes of the Law, tax etc, the house is his. She is only a renter. Insurance is in his name and only covers himself. If she dies the mortagage is NOT paid off. So if she dies he still has the house with a mortgage in his name. If he decides to sell at that point and give you a share I recon that is entirely up to him.

I thought the owner of the house is whoever is named on the deeds ? Certainly, Revenue views the son as the owner but only from a FTB/tax point of view. The person named on the house deeds is the actual owner of the house when its time to sell or pass on via a will.

I may be wrong, though. A solicitor should be able to clarify this.

It will depend on whether there is a Will or not. But I could see this gettimg out of hand and the lawyers winning.

It isnt clear above, but she says her mother in laws name is "on the deeds". I would guess that this name is on the deeds in addition to the person whose name the mortgage is in. The name being on the deed is nice, but try and get anything done with the house and you will find that the person who is paying the mortgage and on the deed is the rightful owner.

Been down this road. Try and get anything legal done with the house and they will look for a document called "right of residence". This basically is a piece of paper that says, no matter what happens to the mortgage holder, the woman/mother has the right to live there, ie not be turfed out by her son.

However, you can only get this piece of paper if the bank agrees to give it to you. The Bank will not agree to this as it basically gives her squatter rights on the house, ie if he stopped paying the mortgage in the morning and she had this piece of paper, then the bank would have to allow her to go on living there, (rent free).

The first line, "my mother in law bought a house as an investment", is actually the flaw in the whole post. Her Brother in law bought a house for his mother to rent out or live in.

(if its an investment, then wouldnt the renters be the ones "making the payments")

poshndecs said:

My mother in law bought a house recently as an investment. The bank wouldn't give her a mortgage because of her age, so her other son (not my hubby) took out the mortgage in his name, and she is making the repayments but they are being taken out of HIS account. Her name is on the deeds of the house.


My husband doesn't get on that well with his mum, and he is wondering what the legal position is if his mum died in the morning. Her will says that all property will be left shared equally between the two of them, but would his brother have any extra claim on that particular house because of the fact that it looks like he is paying the mortgage on it?

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how did he get a mortgage on a house he had no interest in ?

ie. he is not on the deeds , so they bank can't take the house off him , its not his....

edited....

All very confusing. Still don't think its clear. Looks like mother is owner with only her name on the deeds but first son is on the mortgage deed ( possibly as guarantor) and also pays the mortgage out of his own account although mum refunds him some or all.

There is another very significant point here and that is that second son expects to inherit half of mothers estate all though he admits he does not get on that well with her. No matter what is in the will it can be changed up to date of death and second son has no legal entitlement to any part of mums estate. So while current will subsists second son may or may not get a share of this house as his benefit.

mf

If it's her name on the deeds then it's her will that will dictate how the property is disposed of. Unless she has life cover equal to the mortgage balance (doubtful if she's not on the mortgage or she's over 50 and has waived it) the house will probably be sold to repay the mortgage on her death.

Sarah

www.rea.ie

Didnt realise he could get a mortgage without having his name on the deeds. Do the bank still get to keep the deeds untill mortgage is paid off? I guess they do. Sounds messy.