Charge on a shared property

paul123

Hi
My ex partner has got herself in some financial difficulty. She met someone else who gave her a loan for 10k. After 5 years of waiting, so he says, he has now applied to the court to reclaim his money. She has no savings at all and up to her eyes in credit cards debt. But we own a flat jointly on a BTL. Can the court order her to sell the flat even though I own 50% of it. ? She says her income is only 11k a year and she has to pay her living costs and credit card payments out of this.
She does own her own house which she uses as her place of work. Can the court order her to sell the house ?
Any advice much appreciated.
Thanks.

TripleH

How is the BTL property owned, do you have a formal agreement naming you both as equal owners?
I don't think you can be forced to sell the property, but this depends on how it was bought.

I think what is likely to happen, "if" a charge is imposed is that the money she owes will be taken off of her share once the property is sold, but a charge may go against her own house as well.

If I was you, I would look to get your paperwork in order to show what you owe of the property and can prove your claim. If you need to pay any shortfall or repairs, again keep a note to strengthen your corner. Keep it neat and tidy and and easy to understand.

paul123

Thanks for your reply. Much appreciated. Could she be asked to sell her home as it is also her place of work if he will not accept her payment plan ? She has offered £100 per month.

TheGardener

paul123 wrote: »

...Could she be asked to sell her home as it is also her place of work if he will not accept her payment plan ? She has offered £100 per month.

If she was made BR, then it depends how much equity there is in it. If there is enough to make a sale worth the OR's while, then potentially, yes.

Minkym00

At this stage the court can’t force a sale. However, IF she is made bankrupt, which is possible if the creditor knows she has assets, then the OR will appoint an Insolvency Pracitioner to deal with (i.e. sell) her assets to pay off her creditors and the OR’s fees. They will also take a massive chunk in costs. The first asset for them to deal with will be her BTL property rather than her family home. The first port of call will be for them to ask you to buy out her interest. If you are unable to then they will force a sale and claim her 50% interest in it. If this doesn’t cover her debts (bearing in mind that the OR’s fees are £8k and their fees can be twice that) then they will sell her home.

If you can buy out her interest (and that covers what she owes) then that would be the best option and save a hell of a lot of fees.

luvchocolate

Just to add my trustees fees were a little over £24,000 and they were not involved in any property sales which were repossessed before. So fees are very high indeed.