Joint Mortgage Help

Lyrrad

Hi

I have a joint mortgage on an investment property, and I have been paying 100% of the payment for some time now. The other person involved is refusing to contribute.

Whilst I understand my commitment to the lender, I was wondering what my legal position was with regard to getting the non paying party to pay.

smartiedriver_2

Normally joint contracts state 'jointly and severally liable' i.e. if one party cannot/will not pay the remaining party must cover the whole debt.

You will require independent legal advice here.

Thrugelmir

Doesn't the rental income from the property cover the loan cost?

Lyrrad

smartiedriver wrote: »

Normally joint contracts state 'jointly and severally liable' i.e. if one party cannot/will not pay the remaining party must cover the whole debt.

You will require independent legal advice here.

Yes I understand my commitment to the lender. However I am left paying it all as the other borrower is not prepared to contribute anymore.

Lyrrad

Thrugelmir wrote: »

Doesn't the rental income from the property cover the loan cost?

At the moment the property is vacant and it will remain so for some time.

i just would like to know if I can take the other borrrower to a small claims court for 50% of the mortage payment.

Thrugelmir

Lyrrad wrote: »

i just would like to know if I can take the other borrrower to a small claims court for 50% of the mortage payment.

As this a commercial joint venture. Did you make any legal agreement to cover any eventualities prior to purchase?

Lyrrad

Thrugelmir wrote: »

As this a commercial joint venture. Did you make any legal agreement to cover any eventualities prior to purchase?

No is the simple answer to that.

cabbage

not sure about small claims court but by you paying 100% I would think the other person's financial stake in the property is less than yours but this is no good to you unless you sell and then it will be argued as to who is entitled to what share of the property.

Lyrrad

cabbage wrote: »

not sure about small claims court but by you paying 100% I would think the other person's financial stake in the property is less than yours but this is no good to you unless you sell and then it will be argued as to who is entitled to what share of the property.

I'm not too sure I like that thought. Although it is not the case, using your theory, if it had negative equity as the major payer would I have the larger debt:(

holly_hobby

I'm afraid its all been said really ....

All mortagors are jointly and severally (individually) liable for the whole debt - unless the mortgage contract/deeds were drawn up under any other arrangement i.e on a residential mge that would be on a basis called "tenants in common".

If you did not enter or arrange any such protection before entering into the agreement, I am afraid that (from the info here provided) unless you want to face respossession & the resulting fallout - you will have to pay maintain the payments until you find a remedy.

Suggest taking some legal advice on this - but I would suspect a court room may be the answer if your ex-bus ptrnr is resolute in their non-payment.

Sorry I couldn't be more positive ...

Holly

Annisele

You should definitely get yourself proper (i.e. paid for) legal advice sooner rather than later.

Potentially you could be paying 100% of the mortgage payment every month for years, and then have your co-owner claim half the equity and force a sale. I don't know whether or not they'd succeed, but the sooner you get legal advice to find out the better.

Who is living in the property now? Is your income enough to support the mortgage in your sole name?