Joint Mortgage

theshed

My Daughter has recently split from her long term partner. Unfortunately they took out a joint mortgage two years ago.
Currently my Daughter is paying the mortgage and her ex wants nothing to do with the house or mortgage.
We are currently looking at how she can keep the property and the possibility of us helping out. But my wife and I are both in our mid fifties with our own £90,000 mortgage. On paper we can afford it but not necessarily for a mortgage.
Question I have is what happens if our Daughter just repays the lender her half of the repayments ?
My thought is they loaned the money to two people but now only one is willing to pay back.
Is one responsible for the others debt ?

davidmcn

theshed wrote: »

Is one responsible for the others debt ?

Yes, liability is joint and several. The lender can pursue whichever borrower they want to for the full amount.

foxy-stoat

theshed wrote: »

My thought is they loaned the money to two people but now only one is willing to pay back.

You have your own mortgage and this is what your thinking?

If she cannot afford the whole mortgage payment then bung her the other half until she can get the mortgage in her own name, or sell the property and buy one she can afford.

Best to deal with this sooner rather than later or your Daughter will spend the next few years chipping away at the capital and the ex could come back at any time saying he wants half of the equity, which he would be entitled to.

They are both jointly liable for 100% of the debt as well as the equity.

theshed

Yes we are looking at helping her out, problem there is we do not want to just pay up and have someone come along in 'x' number of years and expect a cut.
Selling is an option but she has put a lot into the house so is reluctant to do that unless forced to.
Have got appointment with lender this week so hopefully we can sort something.
In an ideal world for us, ex would default, lender repossess 50% of house which buy at a cut price...
If only !

BoGoF

In all honesty the lender will not be able to help. All they are interested in is the monthly payment.

All they will do is tell her to see a solicitor.

BoGoF

And meant to add, you still seem to be under the impression that paying half is all your daughter needs to no. It's not, she will also be defaulting.

theshed

Not at all. We are under no illusion that the full amount has to be paid.
The point I am raising is if the loan of whatever is knowingly and willingly given to two parties how can one be punished for the misdemeanour's of the other ?
Extreme analogy. My car is stolen then used in a robbery. Am I equally liable for the robbery in allowing my car to be stolen ?

BoGoF

theshed wrote: »

Not at all. We are under no illusion that the full amount has to be paid.
The point I am raising is if the loan of whatever is knowingly and willingly given to two parties how can one be punished for the misdemeanour's of the other ?
Extreme analogy. My car is stolen then used in a robbery. Am I equally liable for the robbery in allowing my car to be stolen ?

It's not even remotely close to being a comparable situation.

Google 'joint and several liability'. It is written in law so your points are wishful thinking.

Unless the ex is prepared to accept a settlement to come off the mortgage and the lender is prepared to give your daughter a sole mortgage then only realistic optiom is to sell. Would still need ex's agreement to sell or expensive legal action to force sale.

davidmcn

theshed wrote: »

Extreme analogy. My car is stolen then used in a robbery. Am I equally liable for the robbery in allowing my car to be stolen ?

That really is a rubbish analogy...

A couple borrowed money. The bank is entitled to get the money back from the couple. How the couple split the liability between themselves isn't the bank's problem.

theshed

Yes the points are wishful thinking.
Ok, how about, my imaginary twins miss there last bus home and borrow £10 to pay for a taxi. Twin A returns the following week, says Thank You here is my £5.
Twin B says sorry I not paying. Is twin A to be punished ?
The 'thread' seems to have been lost here.
My query/conundrum, call it what you will was to ask how a willing lender can, in effect punish the person who is ready and willing to pay back their agreed amount whilst the defaulter walks away ?

[Deleted User]

theshed wrote: »

Ok, how about, my imaginary twins miss there last bus home and borrow £10 to pay for a taxi. Twin A returns the following week, says Thank You here is my £5.
Twin B says sorry I not paying. Is twin A to be punished ?

If you made the agreement with them that they were jointly and severally liable, then yes.

But did your imaginary agreement include that clause? It sounds more as if you set up individual loan agreements with each imaginary twin.