Can my House be forcibly sold?

Stevec8221

Dear All, i have a mortgage on my primary home (currently about 40% of house worth) i also have 4 more 'buy to let' mortgages with two seperate other mortgage companies. My Question, should i get into trouble with my buy to let mortgages, can these mortgage companies force the sale on my private home also.

loopylu36

Stevec8221 wrote: »

Dear All, i have a mortgage on my primary home (currently about 40% of house worth) i also have 4 more 'buy to let' mortgages with two seperate other mortgage companies. My Question, should i get into trouble with my buy to let mortgages, can these mortgage companies force the sale on my private home also.

Hello, in a word, NO. The mortgage company can only repossess the property that the mortgage in arrearrs relates to. If your own home is mortgaged but up to date, you have nothing to worry about.

PasturesNew

I'd have thought it depends how you've structured your BTL company - and that they can, and will, come after the equity in your main house if your BTLs were in negative equity and if you had no other way to pay back that shortfall and all attempts to sort out the debt were ignored.

So, ultimately, yes.... but not "just like that".

These are my thoughts, not backed up by evidences.

loopylu36

PasturesNew wrote: »

I'd have thought it depends how you've structured your BTL company - and that they can, and will, come after the equity in your main house if your BTLs were in negative equity and if you had no other way to pay back that shortfall and all attempts to sort out the debt were ignored.

So, ultimately, yes.... but not "just like that".

These are my thoughts, not backed up by evidences.

The only way this would be possible is if they ultimately took a charging order over the private home or made the op bankrupt for any shortfalls. They couldn't simply force a sale or repossess the private home, but I can see where you're coming from, in the sense that the equity could be t risk. Of course if the op is not in negative equity, then this is not an issue.

loopylu36

It will also depend on who owns the properties. If the BTL are in a sole name and the family home in joint names, then they are only entitled to half of any equity in the private home - just another thing to consider. OP, you probably need to give a few more details so that you can be advised correctly, at the moment you are just getting "generals". I'm certainly no expert in all of this (often asking questions myself ) but I do have a background in property law.

DarkConvict

A mortgage company can only repssess the home it is secured against.

However as stated if there is a shortfall in house value vs mortgage value, (this does happen as banks under sell for fast sale, so get house valuations now incase they do it)

The short fall can then be turned into a CCJ to secure the debt against you, and finally if large enough a CO (Charging Order). This secures the debt on the house. In very few cases it is possible for the creditor to get a forced sale, this would sell the house and any money in it gets paid out to those with a CO, before you see any money. If you still owe to much then the rest of the debt goes back to been a CCJ.

But as above, if the main house mortgage is in Joint names, but the business mortgages were just in your name, they would struggle to get a forced sale as the other account holder is not part of your debt, and the house is partly theirs so could submit an objection to both a CO and forced sale been done in court.

Stevec8221

Wow! thank you very much everybody; to expand on the information; My dad, brother, friend and i each have a 25% stake in 5 buy to lets (each mortgaged through mortgage companies with appropriate BTL) My own private home is mortgaged through another seperate mortgage company. My concern (as the BTL market appears in a shoddy condition) is that if we fell on hard times and were unable to service the BTL mortgages, the mortgage companies wouldnt be able to come after my own home (which i fully intend to overpay!!) A very big thank you to all.

pepe2008

It would depend on how you have structured your Agreement between yourselves if the worse comes to the worse and you have to get rid of the BTLs at a loss ( forced or voluntary ) and there is a shortfall.
You may all be liable for the whole amount, in which case the BTL Mortgage providers will go after whoever they can to get their money.

Unless you bought the BTLs as a Limited Co and managed to borrow the Mortgages without giving Personal Guarantees ( unlikely!) then there will be a liability for any shortfall/costs/interest and any Asset would be under threat once the correct Court Procedures have been followed.