Shared ownership with housing society and debt

poppet17

My husband is the sole mortgagee on a shared ownership mortgage of which he owns 25%, he has never defaulted on the mortgage or the rent. We are both working, I have my own wages and pay my own debts, I also pay for the maintenance on the house and the car (no arrears) he has his wages and pays all the household expenses. However, this month I found out that my husband has 40k worth of debts (not including the mortgage which he has had for 17 years) and that he has a charge on the property through a CCJ for one of these debts, and is paying monthly very small amounts for the other debts and has been for about 3/4 years now. One of the debt companies is now pressing for full payment and threatening court if he does not pay (all of these debts are his personally and are from credit cards/loans). Where do I stand in all this if he goes bankrupt? Will I lose the house? I have just paid to have a new bathroom and kitchen put in. It has all come as a terrible shock, but I am unable to help financially as I retire in a few years time and I am paying off my debts for retirement.:eek:

niccatw

I'm afraid I don't know the answer Poppet, but I hope, by bumping your post back to the front page, some-one might be able to help.

Good luck

Shoe_Gal

Another bump

ladybez

I wouod suggest you get some advice from National Debtline or CAB, as I don't remember seeing anything about bankruptcy and shared ownership. Sorry not much help but will keep you post on first page until clever peeps get up!!

fellwalker09

Hi there. I can tell you of my experience, but the info would have to be verified as accurate, as I can't say whether it is for def.

I nearly bought a house 2 years ago -shared ownership scheme. It was a 40% share, and paying rent on the remainder to the housing association. When I tried to secure a mortgage, there were only a few lenders who provided them. I was told this was because they are considered to be high risk, so I was told. I questioned this and was told, that if you default, they can't repossess you because you and they, don't own the whole house. The housing association has %60. In your case, they own even more. I don't think they can force you out. But as I say, check up, as nothing is clear cut, and it was a financial advisor who told me this, not a legal expert in housing or a debt advisor. I hope you manage to sort things out and keep the house. Good luck.

DarkConvict

As you put in a new bathroom and kitchen, you could say you have a vested interest in the property now, as these items are not easily removal-able.

poppet17

Thank you all, hopefully someone will be able to come up with something, I just feel sick to my stomach. I wish he has told what was going on, but its done now just have to try and sort it out I guess.

gilligansyle

Properties in shared ownership still remain 'owned' by the Housing Association unless you purchase the full 100%. So for example if you default on the mortgage, the lender cannot repossess, as they can't just take the 25%. In those circumstances the HA can take back their 25% and revert to a full rental property.

Not sure how this applies in BR but that is how Housng law works.

poppet17

Thanks gilligansyle. He has had a letter saying they are going to put another charge on the house and that this is only to secure the debt not to repossess. At this rate we may as well be renting, I am so angry, this was my kids legacy for what it was worth. Now they will get nothing, thanks to him :-$