Shared Building - IS Want half rent

steveh1_2

Hi all

Wonder if someone could help clarify where this situation is likely to go, this doesnt effect me, it is affecting someone i know.

This person owns half of a business premises, pays the full mortgage since the person he owns it with has just gone bankrupt. They were paying it 50/50 beforehand.

The IS have been in touch with my friend stating that they want to recieve half of the rent, but are not prepared to contribute toward half of the mortgage. They have stated they are prepared to pay what they consider "necessary costs" such as insurance and rates, but not half the mortgage as they dont see it as necessary cost.

They have expressed no interest in selling it (i guess because its in negative equity) but have put a second charge over it.

The person i know is not BR.

Does anyone have any experience of this, and can they legally claim half the rent without contributing toward the mortgage?

Any help / advise very welcome.

Thanks

debtinfo

In short yes they can, the mortgage company have security over the building not over the rent that it produces.

steveh1_2

So just to clarify, as the Mortgage company is a debtor, they do not/can not pay any contribution toward the mortgage, but are entitled to the revenue the br would be due?

That makes sense but just want to clarify so i can inform my friend correctly.

How would that apply if these actions in turn put my friend into a point of not being able to pay the mortgage and thus sending them down the br road.

debtinfo

im afraid that that is not taken into consideration from the OR's point of view, they are only acting on the bankrupts situation, other connected parties have to look after their own situation

steveh1_2

Thanks for the quick replies!