business loan/accounts in joint name without full knowledge/consent of 1 party + more

jaydizzy

Hi all,

To simplify a very complicated issue,

My parents split, my father used to organise and run all of the finances/business etc and as he had a terrible credit rating/previous bankruptcy used to use my mums name/details.

fast forward 30 years of marriage, he's left, she's stuck with a business loan in a joint name with him, joint bank account with him and numerous other things like 2 mortgages, she has no income apart from £156/month disability allowance and has been left with a massive mess. She doesn't speak english and does not understand enough about any financial/legal matters.

I've approached the bank who approved the business loan, they have said simply that she is still liable, dad refused to cooperate, mortgage companies won't listen, CAB can't help, even police don't want to know about fraud etc as he's even written a will signing everything over to him in the event of her death which she had no knowledge of and he has forged her signature.

it seems like no-one is listening and that everyone wants their money, but no-one is willing to accept that as stupid as it sounds, in accordance with her beliefs she did whatever her husband told her to do,

what on earth are the first steps?

i have managed to get one mortgage on interest only for 12 months, another one to reduce payment for 3 months but i just don't know what else she's exposed to,

any advice is much appreciated,

thank you

Emmzi

I do feel for your mum but "my husbdan is a git" is no defence in the eyes of the law. Presumabley she was ok living on income from the business when there was income. Can't cry out now just because it's gone wrong. Your mum has been a bit daft. You are a good child wanting to help, but it's going to be messy.

1. When she was aware her name was being used, did she take immediate action to get her names off things? Did she alert anyone? If not she is complicit and has no case.

2. If it was "in line with her beliefs" and not "because she had a gun to her head" she had a choice at the time. Therefore, no case.

3. She can rewrite the will any time she likes

If there are more assets than debts, sell stuff, sell houses, go into rented.

If there are more debts than assets, go bankrupt and get a fresh start. Check out the bankruptcy board. Could be done and dusted in a few months. That'll leave all remaining debts with dad, which might feel quite satisfying.

Also, start divorce proceedings, and go after half the pensions etc.

chalkie99

Good advice from Emmzi.

She needs to go to the bank and ensure all joint accounts are frozen to prevent any more withdrawals, write a new will, properly dated and witnessed, which will overwrite anything which exists now and then set about sorting out whatever assets there are.

What do the 2 mortgages represent and what does the business own?

You probably need a solicitor to start sorting this for you.

jaydizzy

thank you kindly for the advice

jaydizzy

freezing account - i will try again with the bank to do this
I have now booked an appointment with a solicitor and importantly an independent translator for a new will to be prepared

2 mortgages - the house she lives in at the moment, and a second house that is rented -

house 1 - C&G have agreed to interest only payments for 12 months which is a massive relief for now, though I know it will take longer to repay in the long term
house 2 - was remortgaged for dad to buy a new business, mortgage is approx 1386 a month on a buy to let mortgage - but rental income generates only 730/month , but C&G have agreed to reduce it to 30% of the mortgage for 6 months until we can sell this (house value £230k - redemption figure £164k)

there is a freehold property which is also under her name, my dad sold the lease for the business that was in the building and I know there is an agreement for the tenants to pay rent, this is to be £15k/year, but the last couple of times I have talked to the tenant he has refused to deal with/pay mum because he states he has an agreement with mum. I did a land registry search and it says that the tenant has a lease agreement with mum until 2029 for £20k /year but I don't know if any lease was signed or where this may be, is it best to threaten court proceedings for non payment of rent? I don't know how to get a copy of the lease however

business loan - dad bought the lease to another restaurant, he obtained a business loan in his and mums name and this was for £230 and I think there's approx 97k left to pay, but I don't know if the lease is in mum's name as well and whether she has any claim for it? how would i get a copy of that lease? or find out whose name the buisness is in, I know my dad changes the Ltd company everytime his tax bill gets too high and he closes with the help of his accountant and creates new accounts and starts afresh, he's a very tricky character

thank you again guys, your advice is invaluable

lawrie28

You can search for the company name at companies house and for a small fee get copies of documents filed for any limited company. This would let you find out who the directors are for a Ltd company.

you can also do a directors search to find out what companies are connected to an individual.

Are the businesses/business still operational?

If so, freezing the bank accounts may cause an issue, which would have knock on effects.

Can you speak to the business banking manager and ask them exactly what is going on? It should scare the carp out of them, as they could well have been lending money fraudulently, so they should want to sort this.

paddyrg

I can't help on most points, but the will is an easy one. She just writes a new will that completely replaces the old one, and if the ex tries to claim any of the estate based on his old will, the newer one will supersede it.

Emmzi

re: property being leased. "e has refused to deal with/pay mum because he states he has an agreement with mum." I assume you mean an agreement with dad,

Get a copy of the deeds. If they show your mum as owner/ freeholder then go round and show tennant the deeds/ copy of the land registry search, tell them if they have a contract with dad it's invalid because he does not have the right to contract on behalf of your mum, and therefore you will be beginning eviction proceedings. If there is no income from the property you intend to sell. That may make them more cooperative.

Ask the accountant which businesses mum is currently a director of. I would not be surprised if dad has skipped out owing him money, and anyway, mum is going to need an accountant. "tax bill gets too high" suggests there is money swimming somewhere. Although if your mum has also been unknowingly engaging in tax avoidance it is fine but you want to check about evasion I can't work out how opoening new companies all the time would help!

Is your dad still using the bank accounts? Have yiou heard from him at all?

I would still freeze the accounts, and ask the bank to open a new one for receipt of monies only, while you get this sorted. You do NOT want dad withdrawing cash.

jaydizzy

thanks again everyone, I have taken your advice and will be implementing the guidance you have given, your help has been invaluable