On title deeds,liable for missed payments??

kiara_2

Wondering if anyone can offer advice. I am still on the title deeds for a property bought with a previous partner. I am no longer financially linked and haven't been for a number of years and my name is not on the mortgage. If my ex fails to make payments on the property will the bank pursue me for money?

Ian_W

Interesting point and I'm no expert [where's bossyboots or rozeepozee when you need them?] but my guess would be NO as you've not signed up for the current mortgage and shouldn't be liable for any default on it.

Poses two other points:
1. Could the BS repo the property as you're still part owner, if you're not liable?
2. Your x-partner couldn't sell without you agreeing [how much is that worth?] even if they wanted to.

If my none expert view is right sounds like solicitors acting for your x and lender have cocked-up good style when they remortgaged the property. Will be interested in a lawyers view, if one happens along.

HGLTsuperstar

I think you're in actually quite a powerful position, and it depends how generous you feel to your ex, else you can really cause some problems.
1. They shouldn't have got a mortgage for a house they ownly part own; you may therefore be able to render this mortgage null and void.
2. You are entitled to half the sale profit, not including having to clear this "fake" mortgage, so why not force a sale and pocket a bit?
How come you've left it for years though, if you want to sell get moving now.
Please any legal bods, chip in.

Ember999

Yes, she can force a sale and should. The proceeds will be split 50/50 as she is legal 50% owner of property and any equity in it. The other party cannot sell without her consent and this gives immense power. Use it wisely She is not liable for any debts be it mortgage or otherwise. I suspect what has happened is she was 'taken' off the mortgage when they split but the solicitors acting on behalf of building society/bank and other party to the mortgage failed to remove her from deeds. This happens a lot

Bossyboots

If you read around these boards, the issue of people being on the deeds but not the mortgage has come up a few times. My OH and I were in the same position at one time albeit some time ago.

As far as the mortgage is concerned though there is no responsibility on the OP for these payments so the bank cannot chase him/her for them. However, if the mortgage is defaulted I have no doubt that at end of enforcement proceedings the bank in question will get an order for sale to recover their money. The proceeds will then need to be split. The OP is not entitled to a 50% share (there's that myth again). The former partner has paid the mortgage and upkeep for all these years. At best the OP is only entitled to a share of the equity in the property at the time they moved out. Even then, that is not necessarily a 50% share.

It is also unlikely the OP could force a sale after what appears to be a long period of time. If the ex cannot pay her out, she can put a charge on the property. I would be surprised if, even after taking court proceedings, an order for sale would be made. It would not be considered reasonable for the OP to expect the ex to move home just because they decide now to do something about their share in this property. If this is just a question of incomplete paperwork then the OP has no position in relation to the house and should get the ex to sort it out.

While the OP has their name on this property, they will find themselves unable to qualify for benefits and legal aid should the need arise.

kiara_2

Perhaps I should have added some more details but I thought it was better to keep it simple. The mortgage is for a 25% share of a housing association shared ownership house. My solicitor did look at forcing a sale to recover a large debt owed to me by my ex which he claimed he could not pay as he had no money. Apparently it is not possoble to force sale on shared ownership houses.

A year or so ago I asked my ex to take my name off the mortgage so that I could remove my name from the title deeds but I have so far not done that as I hoped that a point in the future I may be able to get some payment from teh equity towards the sum owed.

I know that there are a lot of people who get badly ripped off after disastrous relationships. I'm not out to make my ex's life difficult by I was forced to leave my home with nothing but my belongings and would like something towards the debt I have since dug myself out of. He has recently contacted asking me to remove my name from the title deeds as he (uncharacteristically) would not like it to come back on me as he thinks he may fall behind with payments but I would like to keep my name on the deeds until such time as he wants to sell.

Should I just cut my losses??

Bossyboots

Is your name actually off the mortgage? If so, this is surprising because it reduces the ability of the mortgage company to recover losses if there is a default. It seems to be most people's experiences here that mortgage companies will not do this.

Can you prove the debt? If so, then your position in relation to share of the equity is stronger. It would depend on the size of the debt whether it is worth cutting your losses. The other option is to come off the mortgage and title deeds but see whether your ex will agree to register a charge on the property for the debt you are owed.

kiara_2

Yes my name is off the mortgage as far as I know. I phoned to confirm with the building society and it does not show on my credit report. I was told that I had to take my name off the mortgage before I could take my name off the deeds and then I decided that maybe it would be worth holding off. I think that since the mortgage was based on my partners earnings as I was a student at the time, they weren't too bothered.

Yes I can prove the debt as well, some of it still exists, it accrued whilst we were married. I still have statements from my accounts and solicitors letters.

He himself has not bothered about taking my name off the deeds until recently which makes me think he has suddenly realised he can't sell without my consent. The other option I considered was waiting until he wanted to sell and then offering to buy him out, minus the money owed. I am in a strong financial position now and with rising house prices in the area this could be an investment with the added bonus that housing associations sell the percentages of the house at the market value.