Buying partners interest in property after BR

help_needed_please

Hi and thanks in advance for reading this and hope you can help!

My partner is about to go BR and we have our family home with joint mortgage, about 10k negative equity.

The question is, when he goes BR I know I can possibly buy his interest in the property for a nominal fee but will I need to get the mortgage company to agree to me doing this, or do I even need to tell them?

I can't get a mortgage elsewhere, so just want to know if I could buy his interest even if he was still on the mortage/deeds as i couldn't take out a new mortgage.

sorry if i rambled just need some help thanks guys

alastairq

Beneficial Interest in a property is an entirely different thing to being a name on a joint mortgage.

The mortgage is a secured loan.

The 'interest' is a party's share of equity of a property.

In other words, the share of a property's value.

Whether a party has an 'interest' in the value of a property is different to being 'jointly & severally liable' for payment of the mortgage.

By all means, negotiate with the OR to purchase what will become the OR's interest in the property .[if you like, once the BR petition is ordered in Court, then, essentially, all the BR's assets [share of the equity in the property, for example]...vest in the OR...who is charged to realise said assets for creditors' benefit. The mortgagor won't have any concerns as long as the mortgage payments are still being met. After all, if one party defaults on the mortgage, then the mortgagor can still pursue the other party, regardless of whether they continue to have a share in the property's equity! Win/win for the mortgagor?]

wheazy_joe

alastairq I'm in a position where I'm looking to remove my name from the title deeds of our house but remain named on the mortgage. Your comment above leads me to think this is something I could do?

Hollygoheavily

Surely if the equity is negative you won't have to pay anything?

debtinfo

yes you would holly, if you wanted to have the interest returned to you before the 3 years (for a family home) expire then you would have to make it worth the OR's while or there would be no point in them using their time (or giving up a potentially future valuable asset) in them revesting it with the bankrupt.