Joint Mortgage with brother

Fink2iCe

Hi folks,

About 4 years ago I helped my brother get on the property ladder by helping him get a joint mortgage. I do not contribute to the mortgage at all and have no interest in it, however I am 90% certain that my name is also on the title deeds. He does not live in it, and it is a buy-to-let.

There's a chance that I will be declared bankrupt. So my question is, will my creditors be able to force a sale of this property - even if it can be proved I do not contribute towards the mortgage?

Thanks in advance.

Fink

Cobalt77

How much equity is in the property (if any)?

Fink2iCe

About £80k

Cobalt77

I suspect that, if you go BR, the OR will be after your £40K share of the equity then.

MEM62

The OR will seek to establish whether you have a beneficial interest in the property. Based on what you have advised there is a reasonable chance that he may be able to do so - in which case he will seek to recover your share of the properties equity.

Fink2iCe

What do you think might be the OR's assumption with regards to me having beneficial interest in the property?

I didn't help my brother with the deposit and haven't assisted him with mortgage payments.

I am going to be calling a few solicitors to see how they might see the situation.

Flyright

The OR will see it as what it is; a joint asset in which your share will be realised as part of your bankruptcy estate.

Cobalt77

Your best bet is to contact someone like DebtDoctor on this board, Fink2iCe

Most solicitors aren't really that clued up on Insolvency Law - so will only end up costing you more money without providing any material benefit.

It's quite clear cut. When you go BR, all your assets are sold (i.e. liquidated) to help pay off the monies you owe to creditors. Because the property is held in joint names at the Land Registry, you legally own 50% (and this will immediately become apparent to the OR when they do a Land Registry search)

The only thing I'm not reasonably certain about is what rights the OR would have (if any) to force a sale. However, given that your brother doesn't live in it and it is a buy-to-let, I would guess the OR would probably see if your brother is in a position to buy out your share before going down that route.

Flyright

The OR may also seek to claim some of the rental income as an asset in your bankruptcy too.

haras_nosirrah

It would be worth finding out what the or calculates your beneficial interest as and your brother potentially remortgaging to buy out your interest/ pay off your debts if less than 40k

Fink2iCe

I spoke to a solicitor today. His view was that the fact that there's no evidence that I've contributed towards the mortgage, and have never received any rental income - are points in my favour as it demonstrates that I have no beneficial interest in the property.

I hope to speak to a few more on Monday to see what others have to say.