Tenants in common - MBNA debt

iveaheadache

Hi, I'm not sure what to do and thought I would come here for a little advice.

Just over 6 months ago, I suddenly lost my husband.

He had a few debts, most of which have been written off, as he is now deceased.

MBNA however have passed their debt to Drydensfairfax Solicitors despite the fact I sent them a probate form etc, which declares that there is nil on his estate.

They told me because our mortgage is "Tenants in Common" I would be liable for my husbands debts and have to pay £1,244 (just under half of the initial debt). I am now a single mother and supporting two children (CB for one) and cannot afford this debt. My daughter is helping me to fill out an income and expenditure form (as she used to work in debt management), but she is not clear on the Tenants in Common side and how it all works. Is there a way out of this debt? I was not named on the credit card account but I was an additional cardholder (if not in a mortgage I believe this doesn't account you to any of the debt?)

I still have a large outstanding mortgage of £41k (house is worth £50-£55k), they have stated half of the mortgage is a little over £20k.

This is stated on the solicitors letter (if it helps at all)
"From the information provided, we have calculated that a prorated amount would be due to our client. We have calculated the following:

Total Assets: £35,463
Funeral Costs: £2,954
Half of the Mortgage: £20,398
Remaining Assets: £12,111
£12,111 to distribute amongst creditors
Total Creditors: £25,276
Prorata calculation: (Remaining assets/Total creditors) = 0.47915
Amount due to our client: (0.47915 x £2,598.24) = £1,244.94"

I'm not sure entirely what I'm asking, other than advice on what my next step would be and if I truly am accountable, I just cannot see how I can afford to pay this debt.

Any advice would be greatly appreciated and thanks in advance.

eskbanker

iveaheadache wrote: »

They told me because our mortgage is "Tenants in Common" I would be liable for my husbands debts

Firstly, sorry for your loss.

My limited understanding is that in these circumstances it's your husband's estate that's liable for his debts, not you personally - if he owned half of the property then they're presumably saying that they're expecting debt settlement from that asset? However, if you're saying there's nothing in his estate, why do they believe his assets are valued at £35,463?

Best to get specialist advice from someone who knows more than me though - if you don't get other answers on this thread then try:

• a solicitor
• Citizen's Advice Bureau
• posting on the deaths, funerals and probate board
  

Nearlyold

Did you own the house as tenants in common rather than joint tenants? If you did then your husband's share of the house goes into his estate for distribution according to his will after funeral expenses then debts have been settled (or the laws of intestacy in the absence of a will) meaning that his share of the house would not automatically become yours as it would if you had been joint tenants . You really need to get some advice ASAP as it also sounds as if you may have completed the probate forms incorrectly.

jonesMUFCforever

iveaheadache wrote: »

Hi, I'm not sure what to do and thought I would come here for a little advice.

Just over 6 months ago, I suddenly lost my husband.

He had a few debts, most of which have been written off, as he is now deceased.

MBNA however have passed their debt to Drydensfairfax Solicitors despite the fact I sent them a probate form etc, which declares that there is nil on his estate.

They told me because our mortgage is "Tenants in Common" I would be liable for my husbands debts and have to pay £1,244 (just under half of the initial debt). I am now a single mother and supporting two children (CB for one) and cannot afford this debt. My daughter is helping me to fill out an income and expenditure form (as she used to work in debt management), but she is not clear on the Tenants in Common side and how it all works. Is there a way out of this debt? I was not named on the credit card account but I was an additional cardholder (if not in a mortgage I believe this doesn't account you to any of the debt?)

I still have a large outstanding mortgage of £41k (house is worth £50-£55k), they have stated half of the mortgage is a little over £20k.

This is stated on the solicitors letter (if it helps at all)
"From the information provided, we have calculated that a prorated amount would be due to our client. We have calculated the following:

Total Assets: £35,463
Funeral Costs: £2,954
Half of the Mortgage: £20,398
Remaining Assets: £12,111
£12,111 to distribute amongst creditors
Total Creditors: £25,276
Prorata calculation: (Remaining assets/Total creditors) = 0.47915
Amount due to our client: (0.47915 x £2,598.24) = £1,244.94"

I'm not sure entirely what I'm asking, other than advice on what my next step would be and if I truly am accountable, I just cannot see how I can afford to pay this debt.

Any advice would be greatly appreciated and thanks in advance.

I think the solicitors calculation totally wrong.
I would have put assets as £55k (value of house) minus £41k (mtge o/s) giving positive assets of £14k
As tenants in common (assuming it is 50-50) his half comes to £7k then take off creditors of £25k his estate is insolvent.

Please get proper advice before replying to the solicitors.

Nearlyold

I suspect the value of the house has been overstated by the solicitors.

bris

Basically what they are saying is their share of the assets is £1244.92 from your husbands assets of £12111.00, which means other creditors can come looking for their share of the remaining £10866.06.


As an executor you need to get this right or you can very easily become personally liable.


You need professional help to get the real value of the estate. It may be the solicitors are going on past selling prices of typical homes like yours when a proper valuation is needed.


Whilst you are not personally liable for your husbands debt the tenants in common means he has an estate that is. Getting to the proper value of this estate is crucial.


This does of course mean that if there is a value the creditors are still due their share of this which isn't good news as it still leaves you money to find.

iveaheadache

Thank you for all of your comments and advice, I think my next step will be some help from a professional to try and make sense of all this. Thank you again everyone

WillyWonga

If its the only debt left try a full and final settlement with them. Explain that now on your own limited income. I&E form will probably offer £5 month - if friends/family can help out offer them say £250 as a final offer to clear the debt.

Please seek CAB advice, its free and they will help you.

Good luck

PeacefulWaters

iveaheadache wrote: »

Thank you for all of your comments and advice, I think my next step will be some help from a professional to try and make sense of all this. Thank you again everyone

Can you answer this question with confidence, and if so what is that answer?

Did you own the house as tenants in common rather than joint tenants?

iveaheadache

We were tenants in common

Nearlyold

When you completed the Probate Forms did you realise that your husband's 50% share of the property formed part of his estate or did you mistakenly believe you now automatically owned 100% of the property?