Selling house but guarantor stopping me.

GDB2222

roger196 wrote: »

If the house is in negative equity, would your mum be liable for the shortfall under the guarantee. If so she might possibly have some say in whether you sell or not. Although this is unlikely, you need to read ALL the terms in the guarantee.

Thanks for injecting some sanity into this. I couldn't see how anybody could answer the question without seeing all the documents involved. What would happen if the son decided to sell the house for 50p to his best mate, leaving his mum to pay off the whole mortgage? Surely, she must have some protection in the documents?

Anyway, it just underlines the point that you should never act as a guarantor.

DVardysShadow

roger196 wrote: »

From the lenders point of view, a house in negative equity but with a guarantor does not give rise to a bad debt on sale ( assuming the guarantor is good for the funds). Hence the lender will not block the sale.

Same difference in NE:

• Mother is guarantor - mother blocks the sale
• No guarantor - lender blocks the sale.

I am assuming OP is not in NE and therefore not expecting to be bailed out by mother.

CSKR

Thanks for the advice everyone. The property has made 70k on its original purchase price. So the banks is not at risk at loosing its money.

RobertoMoir

CSKR wrote: »

Thanks for the advice everyone. The property has made 70k on its original purchase price. So the banks is not at risk at loosing its money.

It "has made"? If you've already sold it then why do you need to ask if you can sell it? If you haven't already sold it then I'd be careful about depending on 'theoretical' profits on things like this. If it isn't in your bank account then it didn't happen.

GDB2222

CSKR wrote: »

Thanks for the advice everyone. The property has made 70k on its original purchase price. So the banks is not at risk at loosing its money.

So, under what clause of what agreement is your mother blocking the sale? Can you give the wording?