Thanks for all your help. much appreciated. I just want to clarify your response.
Are you saying that we could still try going through the process where if need be we end up serving her in writing that we request her to vacate the property by a certain date (2 months notice) and that she will no longer have access to the property after that date. Then if she does not vacate by that date we change the locks. After changing the locks if she wishes to re-enter the house she will have to take us to court where a judge will then decide if the property should be sold?
Our next plan of action is the following, does it sound ok:
* We have sent her an email now explaining that renting the house while Nmy wife and I no longer live there and do not intend telling the bank is illegal and has to much risk and not an option anymore. We have also asked her if she would please move out again and rent by no later than the end of October.
* If she comes back and agrees thats great but we will monitor that she finds a place soon. If she disagrees and refuses to leave then we intend to formally give her an eviction notice.
* If she does not vacate by end of October my wife and I will rent out a place but will then seek to take legal action to remove her. My wife and I cannot aford to be living there around that period as my wife is pregnant and due to have a home birth in November so its very important to be in an environment that does not make her clam up and not be able to give birth succcessfully and require the need to go to hospital for a c-section.
Its also imprtant to know if its possible that a court could force us that we could not sell. if 3 out the 4 people agree it should be sold and the mortgage is on me and my wifes name, how can a court rule against us? Would a court really rule that we should subject our lives to eternal hell with no options out considering we are offering her a lump some of money and further financial support after? There must be a full proof legal process that can be followed here that will result in allowing us to move out. If the court rules against us then I fear that that we may be forced to move out and simply allow our mortgage to default and leave the problem to the banks. Sure this will ruin our credit rating but trust me when I say the hell of living with bad credit is better than the hell we are living in now.