Beneficial Interest on Partners House

script

A scenario…


Let’s say you have lived with your partner for many years.

She has always had the mortgage solely in her name. She paid the deposit. And she has always paid the mortgage.

You have contributed to the living costs.

“Technically” I think you would be deemed a “tenant” – but there is no formal tenancy agreement or rent book.

Now you decide to go BR.

And the debts are all in your name – and your partner did not in any great way “benefit” from the borrowings that you had.

The OR feels that you may have a beneficial interest in the property.

Your partner to say the very least - is not impressed with this - and would fight tooth and nail not to have to pay over any money.

What actions can the OR take against your Partner?

fiveyearplan

How much equity is in the property? Why don't you give National Debtline a ring and see what they have to say?

Did she have the property before you moved in?

debtinfo

The only way a beneficial interest can occur in that scenario depends on how much you have been paying.

example
Mortgage £1,000pm - Bills/Food £1,000pm
If you pay £1,000pm then you cannot say you were just paying the Bills/food, the OR will take the opinion that you have been paying half of each and so paying half the mortgage.

If you were paying £500pm - Then it could be argued that you were paying only half the Bills/Food NOT the mortgage and so you have no beneficial interest.

As regards action against your partner, The OR first works out how much the beneficial interest is and then whether it is worth taking any action as this would include court action and would be very expensive. They also need to believe that there is money to recover, if she hasn't got it then it would not be worth them chasing. As property prices are very low at the moment, even if you have been paying towards the mortgage it is likely that you havent actualy increased the value of the asset by any reasonable amount

script

Thanks Fiveyear,

Yes there is about £30,000 of equity.

And she had the house before I moved in.

I have tried the NDL and the CAB but unfortunately they couldn't give a precise answer.

script

Thanks Debt

fiveyearplan

I wouldn't mention if you have paid or contributed any home improvements over the years.

script

By the way - if the OR did decide to pursue any Beneficial Interest.

Would he or she ask the creditors first?

Would the creditors have to fund the legal actions?

So if the creditors said no - would the OR be likely to drop the possible BI claim?