Joint Mortgage My Rights

dam205

My Fiance, has a flat with her ex boyfriend which is currently mortgaged with a 110% Northern Rock Mortgage, which is made up of an unsecured loan and the mortgage itself. The flat is currently rented out. Her ex wants to sell the flat as he has come into some money. My Fiance hasnt got the finances to pay off the difference once the house is sold due to the negative equity and has told he she cant sell it as a result. She has recently recieved a solicitors letter from him saying he wants to sell the house and if she doesnt agree they will apply through the courts for an order of Sale. Understandably she is worried as she cant afford to pay this difference or court fees and solicitors. What rights does she have and what if anything could anyone suggest.

Thanks in advance for any help.

Thrugelmir

If the ex has the money to clear the negative equity. Then let him.

An order for sale is an expensive option given that there is no equity in the property. Perhaps a face to face meeting on neutral ground to thrash matters out may be the most effective way.

dam205

He is only proposing paying his half which is fair enough but not when she cant afford it.

Thrugelmir

dam205 wrote: »

He is only proposing paying his half which is fair enough but not when she cant afford it.

Doesn't work like that. Mortgage liability is joint and several from the lenders perspective.

dam205

So what are you saying, the mortgage company wouldnt allow the sale if my Fiancee couldnt afford her half of the negative equity or he can just go ahead and sell it with this solictor behind him if the court grants this Order of Sale and she will be liable to pay what she hasnt got?

Thrugelmir

Putting the issue of cost aside. As the property is in negative equity. Then the lender will need to sanction the sale of the property. As will require an undertaking as to how the negative equity will be repaid.

Lenders are open to negotiation with regards to negative equity. Much will depend on how much each party to the mortgage can afford.

clive12

check if they are listed as tenants in common or in law

cant remember which way they work but they have a bearing on what each party can do.

dam205

What would you suggest she should reply to this solicitors letter which says she has 14 days to reply to and agree to sell the house or the solicitor will apply to the court for an order of sale of which they are sure the court will grant and they will pursue her for legal fees as well?

Thrugelmir

dam205 wrote: »

What would you suggest she should reply to this solicitors letter which says she has 14 days to reply to and agree to sell the house or the solicitor will apply to the court for an order of sale of which they are sure the court will grant and they will pursue her for legal fees as well?

Personal view. Agree to the sale of the house. There's nothing to be gained from being obstructive. (Even though I doubt the threat will be followed through). The consequences then will have to be managed in the best way possible.

clive12

dam205 wrote: »

What would you suggest she should reply to this solicitors letter which says she has 14 days to reply to and agree to sell the house or the solicitor will apply to the court for an order of sale of which they are sure the court will grant and they will pursue her for legal fees as well?

take the letter to the local cab and get some independent advice.

the solicitor is going to possibly profit from the sale so will be pushy just because it looks official and is from a solicitor doesnt mean its lawfully correct.

DVardysShadow

dam205 wrote: »

She has recently recieved a solicitors letter from him saying he wants to sell the house and if she doesnt agree they will apply through the courts for an order of Sale.

I think that the right response is to tell the solicitor that the ex is perfectly welcome to sell the property and there is no need to go to court, however finances do not permit any contribution to the negative equity on a time scale which would be fair to any prospective buyer.

With that response, they have nothing of any substance to go to court for and it is purely a matter of finding a way to address the negative equity.