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Enforcement of Sale
Orisyst
Posts: 4 Newbie
Hello, i dont know if this is the correct section to post in.
I bought a new build apartment with a friend a couple of years ago, we lived in it for a year and then he decided to move out and buy with his girlfriend. Although he said he would still pay towards the mortgages i could'nt afford to live in the property by myself and meet all the bills and pay the service charges so i moved out and moved back in with my parents and we rented the property out. A year down the line the property is still been rented but i ran into trouble about six months ago and fell behind with my share of the mortgage payments and also the ground rent and service charges. At present i owe about £1000 in total, a sum that i'm working hard to pay back within the next 3 to 4 months. I've spoken to the mortgage company and the management company and they are happy to make this arrangement.
The problem is that my "friend" is now trying to force me to sell the property and has told me that his solicitor is going to enforce me to sell. Can this be done?? We own the property as joint tenants.
I feel that i'm been forced to sell, lose alot of equity that i had put in and lose the option that when i'm in a better position that i can move back into the property. If i lose my foot on the ladder it will take me years to get back on!!
Can anyone offer any thoughts??
I bought a new build apartment with a friend a couple of years ago, we lived in it for a year and then he decided to move out and buy with his girlfriend. Although he said he would still pay towards the mortgages i could'nt afford to live in the property by myself and meet all the bills and pay the service charges so i moved out and moved back in with my parents and we rented the property out. A year down the line the property is still been rented but i ran into trouble about six months ago and fell behind with my share of the mortgage payments and also the ground rent and service charges. At present i owe about £1000 in total, a sum that i'm working hard to pay back within the next 3 to 4 months. I've spoken to the mortgage company and the management company and they are happy to make this arrangement.
The problem is that my "friend" is now trying to force me to sell the property and has told me that his solicitor is going to enforce me to sell. Can this be done?? We own the property as joint tenants.
I feel that i'm been forced to sell, lose alot of equity that i had put in and lose the option that when i'm in a better position that i can move back into the property. If i lose my foot on the ladder it will take me years to get back on!!
Can anyone offer any thoughts??
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Comments
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The foot on the ladder that you can't afford to live in?
Sell it.0 -
It sounds like a poorly thought out venture which has now come unstuck.
To your friend, you're a liability, and obviously he now wants out! I'm not sure if he can force you to sell, but it might be worth considering.
Why didn't you stay in the property and get a lodger?Should've = Should HAVE (not 'of')
Would've = Would HAVE (not 'of')
No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)0 -
He did'nt give me the time to find a lodger, it was all done behind my back, within a week of him telling me he was out. My current position now is that i can pay all the arrears and can quite easily afford to live there. The main issue that i have is that the market is poor at the moment so the offer is going to be less that what we bought it for, hence losing most of what i put in including paying for estate agent fees and solicitors. The rental income now covers the mortgage commitment so i think its crazy to sell when the market is on its back.0
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It is only a shame to sell if you can afford to hold out for a good few years.
Your friends problem is that, by getting into mortgage arrears, you have seriously damaged his credit record. His desire to severe all financial links to you is reasonable. If the rent clearly covers the mortgage, why was the rent money not used to pay the mortgage, in full and on time, each month?I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
He did'nt give me the time to find a lodger, it was all done behind my back, within a week of him telling me he was out. My current position now is that i can pay all the arrears and can quite easily afford to live there. The main issue that i have is that the market is poor at the moment so the offer is going to be less that what we bought it for, hence losing most of what i put in including paying for estate agent fees and solicitors. The rental income now covers the mortgage commitment so i think its crazy to sell when the market is on its back.
Whoa! Hang on there a minute.
You and a mate bought a flat together. Presumably you therfore had a joint mortgage on that property too, correct?
Your mate moves out and within a week the property is let to some stranger behind your back?
How did that happen without you contacting your mortgage company to either obtain a consent to let or change the product to a BTL mortgage?
Don't tell me...the lender doesn't know that you have let out the property against the terms of your mortgage loan agreement. Am I right?"Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100 -
I have always been told (by lawyers) that either owner is able to trigger a sale. Won't you lose even more equity if you hang onto the flat?No reliance should be placed on the above! Absolutely none, do you hear?0
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Sorry, i'll clarify
Yes we have a joint mortgage
My mate moved out so i had to a week later, found tenants 2 months later.
I did inform the lender once it was rented out.
Also, just to add, in the beginning the rent did not cover the mortgage hence the shortfall but at the time we or should i just wanted to get someone in0 -
So now you're saying that the rent from the flat covers 100% of the mortgage? (not just the interest?)
Who paid the deposit?
Did you pay all the solicitor and buying costs? How much?
If you sold now, you'd have to split the loss equally, i.e. if you paid all the initial costs, he'd have to reimburse you for his half, along with taking a loan out for any shortfall in paying off the mortgage.Should've = Should HAVE (not 'of')
Would've = Would HAVE (not 'of')
No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)0 -
Does he want the whole house sold or is he wanting you to sell him your bit - and taking advantage of the depressed property market to offer you a very low figure for your half of the house?0
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i work in the legal profession and yes if you own property jointly then either party has the right to apply to court to force a sale.
also please be aware that you say you hold the property as joint tenants and you have fallen out but in that case if either of you die your share will automatically pass to the other. if that is not what you want you need to sever the equtiy to hold as tenants in common - if you contact the land registry they should be able to explain how to do that & its free. if you are not sure a solicitor will do it for you but will obviously charge0
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