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Loan to cover shortfall On joint mortgage

Dave-Carbon
Posts: 3 Newbie
in Loans
Hey. This is my first post, sorry if I'm in the wrong place.
About 4 and a half years ago me and my partner at that time split up. I was left paying the joint mortgage to a house neither of us live In on top of other bills. Fast forward to present day i can no longer keep paying for the house i js dont have the money to throw down the drain. I'm looking at selling the property at auction but there's going to be at least a £10,000 shortfall. My ex is worried she can't pay her half due bad credit.
My question is if I was to take out a loan to cover both our halves of the shortfall could a solicitor write up a contract of agreement that she would pay me back for half of the loan. Or would I have to physically transfer the money to her account then she would have to pay her half of the shortfall that way?
Thanks for taking the time to read this and for any feedback.
About 4 and a half years ago me and my partner at that time split up. I was left paying the joint mortgage to a house neither of us live In on top of other bills. Fast forward to present day i can no longer keep paying for the house i js dont have the money to throw down the drain. I'm looking at selling the property at auction but there's going to be at least a £10,000 shortfall. My ex is worried she can't pay her half due bad credit.
My question is if I was to take out a loan to cover both our halves of the shortfall could a solicitor write up a contract of agreement that she would pay me back for half of the loan. Or would I have to physically transfer the money to her account then she would have to pay her half of the shortfall that way?
Thanks for taking the time to read this and for any feedback.
0
Comments
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Will you be in a position to repay the whole amount of the loan you take out - regardless of any contribution from her?
You could certainly write an agreement stating that she owes you £X amount and repayments terms etc if you choose to pay the full amount and if she agrees to sign it.
But will she ever likely be in a position to repay you?
The agreement is the easy part but actually getting money from someone if they have no assets can be the hard part.
If you had an agreement you'd quite likely be able to take her to court if she didn't pay. But if she already has a poor credit file will she mind about getting a CCJ?
Are you aware of any chance she might go bankrupt - does she have significant other debts? if she did then obviously the debt to you would form part of that.
You say you are planning to sell at auction - has the property been for sale and empty for the last 4years?A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0 -
I could cover the loan amount so if she refused to pay for whatever reason I could continue payments. I was js curious as if she was to sign something agreeing to repay, if she didn't would I be able to reclaim it via small claims court.
Last i was aware She was an Assistant Manager and has married. Her husband claims to make 40k a year so I don't know if bankruptcy would qualify for her I'm not really up to par on that neck of the woods.
The mortgage is on intrest only because I can't afford to run it on repayment even after extending the term. The intrest is literally the only thing I can afford to pay which in the long term isnt paying anything off the house, resulting in possible repossesion down the line. So I figured if it was to sell at auction and I was to cover the shortfall with a loan then at least I'd free if the worries of a house neither of us want.0 -
Can you try to push her to pay at least some of the shortfall up front? Even if she is not in a position to pay half the likely shortfall see if she will be able to raise some. That way you at least reduce the amount she may or may not repay.A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0
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Hello there,
Tixy's advice is really good here. Although a formal, binding agreement could be drawn up there is the potential for the other party to default on their obligations to you.
Another option to consider is to offer the mortgage company a 'full and final settlement' to cover your liability. For example, you could see if they would accept £5k from you - and agree that you are not liable to cover the remainder of the debt. It is imperative to negotiate full & final settlements in writing, and keep the confirmation in a very safe place. We've a fact sheet outlining the basics here:
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers
Please do bear in mind that under the rules of 'joint and several liability' either party could be held to pay the full amount of the debt, they don't usually get split 50/50, sadly.
Best wishes,
National Debtline.We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
Thanks for all the advice it's giving me food for thought.0
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