Mortgage liability following death of ex partner

jpr_74

Up to 2010, I had a joint mortgage with my then partner.

We then split up and I moved out and declared myself bankrupt and started a new life. The house was on my bankruptcy declaration. She also declared herself bankrupt in 2011, but she was able to keep up the mortgage payments and continue to live in the property.

Since then I had checked with my receiver with regards to my liability telling me that I would not be liable for any shortfall for any missed or defaulted payments and I would be protected by the terms of the bankruptcy. I would also be protected by the terms of the bankruptcy should the property be repossessed and sold at shortfall.

Since I moved out, I have no interest in the property whatsoever.

I have recently found out that my ex partner has passed away, and now my credit file has shown that there is one payment in arrears already.

I have had no contact with anyone from my ex's family since bankruptcy. I was going to call the mortgage company to find out what is likely to happen, but am worried I would leave a footprint as it were and then they would chase me for payments.

Where do I stand?

jamesd

Best guess is that you inherited 100% ownership of the property when your ex died and it's now your property, with you having full rights to sell it or move in whenever you want.

I don't think it is true that "Up to 2010, I had a joint mortgage". I think that you still had a joint mortgage until your ex died and now have a sole mortgage and that this is why your mortgage lender is recording the missed payment on your credit file. Did you actually manage to get yourself off the mortgage when you split? Lenders are very much not keen on accepting that sort of deal and would normally have refused to remove you.

By "have no interest in the property whatsoever" do you mean the legal meaning of no interest or that you are just not interested in it?

If the property was purchased in the usual way, with the two of you as "joint tenants" rather than "tenants in common", and that hasn't been changed, you automatically inherited 100% ownership of the property on the day she died. So you may have a very substantial 100% interest in the property. Nothing in her will or probate can change this since this change happens outside her estate.

First find out what your actual ownership situation is if you don't know it. It's worth paying the few Pounds for a Land Registry search to be certain. Because our mortgage lender would have to agree to any non-fraudulent change in ownership split they would also know the ownership.

Once you know your actual ownership share you can discuss the situation with your mortgage lender, including whether you want to choose to make the payments or want to pretty up what may be your property so you can sell it and hopefully both clear the mortgage and make a profit. If it's not clear from the Land Registry you could also just phone then and ask them what information they have about the split of ownership and whether you are now the owner.

It would also be good to know whether your ex and you were ever married, or were civil partners, and if any legal separation or divorce has happened. If so, what did the settlement say about the property?

Beyond that, the law is different in England and Wales vs Scotland or Northern Ireland so if you are not in England or Wales please say where you are.

What's the current state of your BR? Fully discharged without restrictions or something else? Because this is relevant to how much freedom you have and whether the OR may take an interest.

jpr_74

Thanks for your reply.......

At around 2007 there was no equity in the property and this would be the main reason why she managed to keep the house, as with the low interest rates since around 2009.

I never managed to get my name from the mortgage, as I would have had to either sell the property, or buy her out. Due to the bankruptcy, this could not have happened, and also I don't have any interest in the property.

We never married, we were just civil partners.

Due to the fact there is no equity, then owning the property 100% doesn't benefit me at all.

I was fully discharged in 2010, with one more year left of it on my credit file.

I have tried to speak to my receiver at the time, but their phone number has changed. She had a different receiver from me as per the London Gazette notification.

I want nothing to do with the property and while this is a sad time for her family, I will be glad when it is no longer part of my life.

Hope this reply helps.

Pricivius

As jamesd suggests, you need to get a copy of the land registry entry to confirm that you are listed as a owner and to understand whether you own the property as joint owners or as tenants in common (TIC) with your late ex. If you own it jointly, then the property is now yours and you need to tie up the loose end - presumably by selling it and paying off the mortgage with the proceeds. If you own it as TIC, then you own whatever percentage was agreed at the time (presumed 50% if there was no agreement) and whoever she left it to in her will or by the laws of intestacy owns her percentage. Again, it's a loose end that needs tying up.

My understanding (although others can no doubt confirm or correct) is that neither your OR nor your late ex's OR will have any interest as it is more than 3 years since bankruptcy for both of you. Presumably any mortgage shortfall would be included in your bankruptcies and any excess proceeds from sale would be yours to keep, but again, I am not sure on this so someone can hopefully confirm!

Owning some or all of the property may not benefit you if there is still no equity, but it may disadvantage you so best to get it sorted out.

Land_Registry

If the property is in England or Wales and registered then you can view/download a copy of the register online for £3 or obtain an official copy by post for £7 - our online guidance explains how this is done

Our guidance on joint ownership explains how such information may be recorded but the register alone is not the definitive source re TIC or JT.

I would suggest checking the register and the paperwork (if any) from when you bought the property and took out the mortgage. I would also suggest researching your bankruptcy's impact as well as this may also have severed the joint tenancy and caused you to become tenants in common as well.

Then seek legal advice to understand what options are available to you

Note - if you rang to ask us how you owned the property you would be referred to the same guidance as we should not provide this over the phone.

Upsidedown_Bear

Duplicate thread here:
https://forums.moneysavingexpert.com/discussion/5200996

getmore4less

Even if joint tenants at purchase(which is not the most normal way to do it as james seems to think) does going bankrupt sever the tenancy?

The land registry entry won't tell you this unless it was updated.

Matts_Mum

You say you were never married, just civil partners.

Just for the sake of completeness, Civil Partners are people of the same sec who have entered into a Civil Partnership.

If you are a man and a woman living together, you are just that; living together.

jamesd

Given your other post's belief that "At the time, we were joint owners and up to now we still were whether I liked it or not. The mortgage company have advised me that they will seek litigation after 3 months, which is understandable from their point of view" it appears initially that you are now the owner of the property, having acquired 100% ownership at the date of her death.

There is no reason for you to let your mortgage lender take legal action after three months then end up being granted a repossession order against you. That'll add to the bankruptcy negative on your credit history, unnecessarily. It may also cost you money since property prices have been improving in many areas.

What you should really be doing is confirming that it was joint tenants and that you are now 100% owner then discussing with your mortgage lender a timeline for agreed sale of your property. That's the sort of thing that routinely means that legal action will be delayed for a reasonable time to allow the sale to happen. Sales by the owner tend to result in substantially higher prices than sales by a mortgage lender so even though you're protected against a shortfall by the bankruptcy you could well be losing a profit.

If you truly want to let them do the work and accept the lower price then you should not allow them to commence legal action but should instead voluntarily surrender the property to them because this is a little less negative than repossession.

You appear to now own at least one house. Where are you living now? If you're renting, surely you could save money by moving into your house?