selling house, mortgage shortfall and secured Loan

rjh090384

Hi

If this is in the wrong category then just move it please. I'm covering a lot here.

My ex has agreed a sale on our currently unoccupied house and he hasn't paid mortgage since January (this was a condition of sseparation agreement)

The sale price leaves a shortfall in the mortgage of 25000. The mortgage is with nationwide. Waiting to hear wether they will approve sale. They sent me an income questionnaire and one of the questions was do you have permission from secured loan ccompany to sell.

Naively this was something I hadnt. There is a secured loan in my name with five years and about £7000 left to pay on it. I have no trouble making the payments on this loan. do I nneed to contact them and what is likelyoutcome

Any advice appreciaTed x

kingstreet

If you do not intend to, or cannot repay the secured finance, you need permission from the lenders concerned to sell the property for a price which will not cover those charges.

Without it, your solicitor will be unable to complete and provide unencumbered title to the property to your buyer - ergo, your sale will collapse.

Cannot say what either lender will decide.

rjh090384

So I need to contact secured loan company for permission to sell? I can pay the loan as agreed but not ffully repay?

kingstreet

As the loan is secured by a charge over the property and you need the charge removed so the property can be sold, you have to do the same with the secured loan lender as you do with the mortgage lender.

You will need to make an agreement with them as to how the money will be repaid after the sale.

rjh090384

Oh ok. Thank you. Sorry i've been very ill and brain isn't quite functioning to full capacity and it just didn't occur to me.