Charging order on girlfriend's house?

nik_k

I have a mortgage debt of approx £42k, owing from my house being repossessed a couple of years ago. This is currently being repaid at a nominal rate. I also have a few smaller debts.

I am about to move in with my girlfriend, who owns her house. We intend to handle the monthly finances in such a way that she retains full payment of her mortgage, and I pay all the monthly bills.

What I want to do is to protect her house/savings from any future action from my creditors (mainly the mortgage company). What is the best way to go about doing this? I was thinking that by not directly contributing anything directly towards her mortgage, this would effectively safeguard any claim from my creditors that I have any interest in the house.

A family member who is pretty 'savvy' has rattled me by saving that (in their opinion) I cannot stop any creditor taking action against me and applying for a charging order against my girlfriend's house if they see fit. Is there any circumstance in which her house/savings could be at risk from any action by my creditors?

What are your thoughts/advice?

Dave_Ham

Not sure they are that savvy.

If the property is purely in your OH name and you are not contributing, then no way they can achieve a charging order..

Just my unqualified opinion, but I am pretty confident that this is correct.

Best to check though

nik_k

Thanks Dave

That makes perfect sense to me...but then again real life doesn't always follow the perfect sense rules!

holly_hobby

No a charging order can not be granted/placed on anyone else's property who is not party to the debt.

Your contributing to her mge may evidence a benefical interest, but that would be relevant to any division of assets upon a split only.

Hope this helps

Holly

nik_k

Thanks Holly

The advice so far confirms my own personal understanding

The_J

Dave_Ham wrote: »

Not sure they are that savvy.

If the property is purely in your OH name and you are not contributing, then no way they can achieve a charging order..

Just my unqualified opinion, but I am pretty confident that this is correct.

Best to check though

holly_hobby wrote: »

No a charging order can not be granted/placed on anyone else's property who is not party to the debt.

Your contributing to her mge may evidence a benefical interest, but that would be relevant to any division of assets upon a split only.

Hope this helps

Holly

This is correct.

Thrugelmir

nik_k wrote: »

I was thinking that by not directly contributing anything directly towards her mortgage, this would effectively safeguard any claim from my creditors that I have any interest in the house.

The issue is more how you use your disposable income rather than any to do with your partners assets.

As a court could view the amount you contribute to the "general pot" as excessive, and to the detriment of your creditor.

I.E. as a way of passing money to another party.

jgh

nik_k wrote: »

I am about to move in with my girlfriend, who owns her house. We intend to handle the monthly finances in such a way that she retains full payment of her mortgage, and I pay all the monthly bills.

I would recommend that you go to your bank/solicitors and rewrite the mortgage agreement such that you are both the property owners and debt liabilitors, but also draw it up to specify that you are 40% owner/liable and she is 60% owner/liable (or whatever an appropriate propertion would be) as tenants in common, not as joint tenants.

holly_hobby

jgh wrote: »

I would recommend that you go to your bank/solicitors and rewrite the mortgage agreement such that you are both the property owners and debt liabilitors, but also draw it up to specify that you are 40% owner/liable and she is 60% owner/liable (or whatever an appropriate propertion would be) as tenants in common, not as joint tenants.

A charging order can still be placed on the property as he would be an equittible owner, albeit it will be allocated against his equittable share (if the deeds are effected under a TIC arrangement) on disposal - the OP is after avoiding a CO as far as I can establilsh - which will not be achieved by his becoming party to the mge and deeds (as you can't have one without the other). However, this needs to be balanced with his own view of contributing to the mge of his GF, with no ownership rights (albeit via any pertion for beneficial ownership via the courts on a split, or a trust deed between them).

OP you should also be aware that a charging order may only be pertitioned for by the OC/Assignee (and they are not always granted by the Judge), following the default of a CCJ i.e the debtor fails to adhere to the court instructed payments, which are determined by the Judge, following his evaluation of their detailed income and expenditure report. So even if the case of property holders, this can be a long way off and never rear is head ..... but in your case, honestly why chance it (indeed if I was your GF I would refuse your being added to the mge, as if you are already in default you would fail the lenders credit score/search - and then your GF would also be financially associated with you ... a bad move all round in my opinion).

If you are having an issue with debts, please visit the debt help section of this forum and other alternative Consumer action forums, to deal with the problems that you seem to be experiencing.

Hope this helps

Holly

Dave_Ham

jgh wrote: »

I would recommend that you go to your bank/solicitors and rewrite the mortgage agreement such that you are both the property owners and debt liabilitors, but also draw it up to specify that you are 40% owner/liable and she is 60% owner/liable (or whatever an appropriate propertion would be) as tenants in common, not as joint tenants.

Or as suggested leave the plan as is and girlfriend is fully protected from charging.