Secured loan in joint name

kayalison_2

I am stuck with a joint loan secured on a property that isn't mine.
My ex-partner and I took out a secured loan in 2007-it was in both our names as he wouldn't have been able to borrow the amount needed if it had been in his name only. He is the lead name on the paperwork, as the property which it is secured against is in his name only. The proceeds of the loan were used to pay off some existing debts, with the majority used for home improvements.
I have been making the repayments on this loan over the last 10 years (£220 a month) and he was paying the original mortgage.
Unfortunately due to something very serious happening, we split up and I am now renting privately. He is still, I believe, living in the property.
My question relates to the secured loan. I am still making the repayments, along with an additional £50 a month due to their being arrears on it. However, I have been told by various parties (some legal and in the know and some not) that if I were to stop paying, the loan company would go after my ex as he holds the security in his name (with the house) and the company would go to repossess it. I understand that we have joint and several responsibility on the loan so have continued to pay up to this point. The loan company are obviously keen for me to keep paying. They have, however, informed me that I am in breach of the terms and conditions of the loan contract by not having adequate building insurance on the property. As I am not living in the property I am not prepared to pay for this.
I should add that a solicitor advised me that I have a beneficial interest in my partners house as my name is on the paperwork for the joint loan, should he come to sell it.
My ideal scenario would be for him to sell the house and clear off the secured loan with the proceeds and we can both move on.
The CAB have advised me that as the security to which the loan relates is not in my name, I should not be dealing with it as a priority debt! I already have a lot of other debt relating to my ex, due to my stupidity with giving in to him and I need to seriously work at getting this cleared.
The secured loan has another 10 years to go (£20k outstanding) so obviously I don't really want to continue paying this, now that I am no longer living in the property! At the end of the term of the loan, if I keep making the repayments, I will have paid back somewhere in the region of £50k. If my ex stays in the property and decides to sell at some point in the future, will I be able to claim back any of the money that I have paid in? If I stop making the repayments, what are the implications? I do not really want to blacken my credit record further, but I need to do something.
I wonder if anyone has any experience of this or any advice to give?

foxy-stoat

If your name is not on the mortgage or deeds then you will get nothing in the future sale, proving you have beneficial interest and quantifying the amount will probably cost you the same in legal fees.


If you stop paying the loan your credit file will be wrecked for around 6 years, but they will repossess the property eventually - it will take many years from the date you stop paying to the date they stop chasing you though.


Check your credit file, see if the arrears have already wrecked it - if you are able you should try and get a settlement figure and get an unsecured loan, if you can for £250 - £270 a month you should be able to cut your financial link with your ex and continue with your current monthly payments with another lender.

Pixie5740

Having a beneficial interest and enforcing it are two different things. In your shoes I would just stop paying the secured loan and focus on your other debts. You could let your ex know you are stopping the payments to the secured loan if you wish. It's his home at risk so let him pay it. I certainly wouldn't continue paying the secured loan in the hope of being entitled to some equity from the property in the future.

National_Debtline

Hi kayalison


It does sound as though you are essentially subsidising your ex's home ownership (and I'd guess he almost certainly does still live there - either that or he has sub-let it).


I find it hard to argue with the guys above - there doesn't seem to be a great case for you maintaining these contractual payments. As for equity, well it is anyone's guess as to whether there is any, let alone whether you would be able to stake a claim to a beneficial interest without spending a small fortune in legal fees. Without knowing the mortgage balance and a realistic valuation for the property, you can't determine this.


Have the CAB outlined any potential options for dealing with your debts as a whole?


Dennis
@natdebtline

BrassicWoman

are other debts joint also?

sometims a situation screams bankruptcy....

Shakin_Steve

Are you still in contact with your ex? If so, you should really let him know that, as the loan you are paying is secured on his property and was used for improvements to that property, that you are not willing to continue paying it. You have to make sure he understands that, while both of your credit histories may be ruined, he will also lose his house.
But make sure you really are willing to go down this path before you tell him.

kayalison_2

They're credit cards, in my name, but which bought stuff like shopping when he hadn't the money to pay. There is an unsecured loan, in both names, that was used to pay off his overdraft, credit card and block pave the driveway. The loan money was paid into his bank account and when it came to paying the block paving money it turned out that he had spent the money he was supposed to have set aside for the block paving, so I had to withdraw the cash on a credit card I had. This loan went to a ccj, which I am still paying for through a DMP, along with the other credit cards.

foxy-stoat

Whats the total debt you are liable for?


Sounds like you need to go IVA or BR.

BrassicWoman

As you are renting anyway, bankruptcy seems a good route so you don't send your days paying for his lifestyle. Why not ask about the practicalities on the bankruptcy board? To my mind a clean score is not worth the years of scrimping you'll be doing to line wide boys pockets.

bearcat16

If you're on a DMP and have a CCJ, I don't think there's much you could do to worsen your credit at this point.

I'd file for bankruptcy and let your ex worry about his house being repossessed by the secured creditor.

kayalison_2

At the moment I have £16k on the DMP - I am paying £80 a month to a company who distributes this to my creditors. The already existing CCJ is in the £16k and although this is in both mine and my ex's name, I am paying for this and have been since 2009. Then there is the £20k outstanding on the secured loan.
I've been told I can't file for bankruptcy because of the 'beneficial interest' in the property due to my name being on the paperwork, and having made the repayments over the last 10 years.