Tenants in comman!!

doug_81

Hello All,

I'm looking for a bit of advice and was hoping you'd be able to help. I bought a house with a friend back in july 2007 and less than 6 months in things had well and truly gone wrong, so I moved out and for the next couple of months still continued to pay my half of the mortgage and bills until a suitable tenant was found to live with her.

Since then I have had nothing to do with the house or her, that was until july of 2009. I made contact because our fixed mortgage had ended and I could now take my name of the mortgage without any fees or penalties; but I then learnt that not only is the property in £10k negative equity but that she was also on a debt management plan and was both unwilling and unable to buy me out.

I have been led to believe that until her circumstances change (5years+) I am to just accept that I am tied to the property and liable for ALL the debt if she defaults; and will be unable to buy a home of my own as my wage wouldn't cover the credit needed for both mortgages....surely this isn't right!

If she isn't in a position to buy my half, can I make arrangement to buy her out or put the property on the open market? Does everything really rely on her? Am I totally stuck??

I am now coming up to the forth year and there doesn't seem to be any end in sight. I have spoke to a solicitor who has advised me to move back in the property but this has left me with even more unanswer question;

If I move back in how should I go about paying my half of the mortgage?

If I move back in and a few months down the line she moves out and stops paying her half will I still be tied to her but now paying all the mortage myself!?

And finally…

Can I force her to sell to me? If so is this still likely to cost me £1000’s in fees?

Please please help!


Kind Regards from a very stressed out Money Saver.

G_M

doug_81 wrote: »

I bought a house with a friend back in july 2007 and less than 6 months in things had well and truly gone wrong, so I moved out and for the next couple of months still continued to pay my half of the mortgage and bills until a suitable tenant was found to live with her.

Since then I have had nothing to do with the house or her, that was until july of 2009. You've left it all this time to address the issue of having a mortgage, but doing nothing about it? I made contact because our fixed mortgage had ended and I could now take my name of the mortgage without any fees or penalties;Errr.... only if the lender agrees, which assumes the remaining mortgagee ('friend') is acceptable to their lending criteria but I then learnt that not only is the property in £10k negative equity but that she was also on a debt management plan and was both unwilling and unable to buy me out.

I have been led to believe by.....? that until her circumstances change (5years+) I am to just accept that I am tied to the property and liable for ALL the debt if she defaults why ALL the debts? Only the mortage unless you have other joint debts; and will be unable to buy a home of my own as my wage wouldn't cover the credit needed for both mortgages....surely this isn't right!of course it is. You have a mortgage. You signed it in 2007 and became a property owner. Walking out did not alter either your ownership or mortage status

If she isn't in a position to buy my half, can I make arrangement to buy her yes, if a) you can afford it and b) the lender agrees out or put the property on the open market? yes if a) she agrees or b) you get a court order AND you are betwen you able to pay off the negative equity Does everything really rely on her? Pretty much. Buying a property together, especially with a mortgage, is more of a commitment than marriag these days. Am I totally stuck?? see options above

I am now coming up to the forth year and there doesn't seem to be any end in sight. I have spoke to a solicitor who has advised me to move back in the property but this has left me with even more unanswer question;good advice. You own it. You are liable to pay the mortgage on it (ALL the mortgage if she does not contribute) - you might as well benefit from having a home

If I move back in how should I go about paying my half of the mortgage?Standing Order? Post a cheque each month? Internet banking? Just make sure the other half is paid too otherwise the lender will eithr chase you or repossess

If I move back in and a few months down the line she moves out and stops paying her half will I still be tied to her but now paying all the mortage myself!?not tied to 'her', tied to the property, and yes, paying all the mortgage. You could of course, get a lodger.

And finally…

Can I force her to sell to me? yes,If so is this still likely to cost me £1000’s in fees? assuming you can afford this and assuming she does not cooperate, you'll need a court order = legal fees

Please please help!

.

Many of the actions identified above depend on agreement by the Lender. No point trying to sell the property, buy her out, etc etc unless the Lender is happy to allow you to.

As for the income received from the tenant all these years, half of which was yours as you are joint owner, which presumably went towards paying your mortgage, I'm sure you've been declaring it to HMRC and paying tax.......

Richard_Webster

Some of these situations where people own property together just aren't easily resolvable and they find out too late that there is no magic solution.

I know it is hindsight, but I am hoping others read this thread.

If you are going to buy a property together you must understand and think through the implications and realise how your finances will become linked and how you could get yourself stuck.

In this case the person in the property has run up lots of debts etc. Didn't OP know here well enough to suspect that this might happen?

silvercar

All good solid advice from G_M.

I just take issue with this last bit:

G_M wrote:

As for the income received from the tenant all these years, half of which was yours as you are joint owner, which presumably went towards paying your mortgage, I'm sure you've been declaring it to HMRC and paying tax.......

If she was living in the property and paying all the mortgage, then the "tenant" would be a lodger and under the rent-a-room scheme, your ex would be entitled to receive £4,500 rent a year tax free.

doug_81

Thankyou everyone for your help...I guess I'm only really left with one option!! Better find myself a locksmith :-(

BitterAndTwisted

You have plenty of options most of which entail having an adult conversation with this person who you trusted enough to tie yourself to financially all that time ago. As G_M said: buying a property together, especially with a mortgage, is more of a commitment than marriage these days. People who consider themselves to be in a "partnership" should pay very close attention to this fact.