Friends daughter

Pobby · 11 January 2009 at 11:18AM

A bit of a messy situation. Some how my friends daughter and her boyfriend managed to get a mortgage earlier last year. All sounds a bit dodgy to me as it was a hundred percent mortgage and the lender allowed tips, they wait on tables, to be included.

After a few months they split up and the boyfriend is still living there, daughter back with parents. He wants her back but that won`t happen. He cannot afford to pay the £800 a month by himself so ex g/f is still paying half.

He is refusing to quit, childish I know but they are very young. Her idea is to get the boy friend to move out and get the place rented subject to lender approval. I think he is hanging on in the flat hoping she will come back.

She is also thinking about going bankrupt but to my understanding he would also have to do the same.

If that occurred would the lender be able to chase them for the difference after a distressed sale as I guess they are in a fair bit of negative equity?

Any suggestions gratefully recieved. My friend is intending on seeing a solicitor.

beanielou · 11 January 2009 at 8:17PM

Think your friend would be best to see a solicitor & could also try CAB.
Lender could chase for shortfall
She could go bankrupt without him doing so.
Not sure this is any help.
Hope all is well with you?

halight · 11 January 2009 at 8:24PM

Hi
The only advice i could give is to seek leagal advice very ticky thing your friends daughter has got into. no easy way to deal with any of it and even worse at a young age.

all the best to her.

Miss_Piggy_2 · 11 January 2009 at 8:29PM

Hi

Very tricky situation. I think (may be wrong) but some solicitors offer half hour to an hour of free advice before charging. I would strongly recommend your friends daughter see's one asap.

Her idea of renting out is good, but the mortgage is £800 a month??? Are they in London? If not then its possible she may not be able to let the property for enough rent to cover the mortgage? 'm in a boom town and rent a HOUSE at less than £600 a month. Something to think about.

She really needs legal advice asap.

Sorry couldn't help more.

Miss P
xx

MrsTinks · 11 January 2009 at 8:46PM

Round here you can barely get a 1 bed flat for £800

But then that's Oxon/Bucks border so close to M40 and London train lines

If your friends daughter goes bankrupt (and this is not an easy out btw!!! that will stay with her forever depending on what line of work she wants to pursue!) then her partner would be pursued for the full mortgage. However if they sell and the property is in negative equity then yes they would both be pursued for the outstanding amount - if either then failed to pay chances are that the other would be chased for the lot...

I would second seeing a solicitor as soon as possible - however maybe explaining to her ex that if he doesn't agree to sell then she will have to declare herself bankrupt and then HE will be liable for the whole lot, might be enough to scare him into realising that she's not coming back and selling is really the only way forward...

Pobby · 12 January 2009 at 8:25PM

Thanks folks for getting back to me. It`s a tricky one I have to agree. It`s all the more complicated as ex b/f is a bank worker hence he doesn`t want to go br. When my buddy told me about this on Saturday I thought I would post here as you guys are pretty savvy. The real answer, I think, is a solicitor.

We certainly are not in a boom town but I think that they could get £450 to £500 a week, in theory, as it is a waterside apartment. Mind you, this could go on for years before the flat got any equity back in it. What a begger all this boom and bust is.

Thanks for your good wishes beanielou. We are fine at the moment thanks. Hope all is well with you.

Fire_Fox · 12 January 2009 at 8:39PM

Pobby wrote: »

The real answer, I think, is a solicitor.

We certainly are not in a boom town but I think that they could get £450 to £500 a week, in theory, as it is a waterside apartment. Mind you, this could go on for years before the flat got any equity back in it. What a begger all this boom and bust is.
.

But that's a few years of good credit history if the rent can pay most or all of the mortgage and related costs: bankruptcy stays with you forever. Together or apart, this negative equity would have affected their future plans.

Friends daughter

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