Guarantor Loans

macman

Hectors_House said:

Aranyani said:

If you don’t live in the house how would selling it be losing your home?

Because I don’t own property elsewhere.

So your 'home' is the property you presumably rent. It's an asset you own 50% of, not your home.

Hectors_House

Aranyani said:

Hectors_House said:

Aranyani said:

If you don’t live in the house how would selling it be losing your home?

Because I don’t own property elsewhere.

Its still not your home though if you don't live there.  Its her home and your investment currently. 

I completely understand that you don't want her decisions to cost you significant amounts of money, that is completely understandable, but it might be that to protect your self you have to sever the financial ties, and the way to do that is to sell the house and split the equity.  

I understand what you are saying but I’m too old to start again with a mortgage. I probably wouldn’t be able to get one anyway and I’ve worked too hard all my life to end up living in rented accommodation.

If the worst comes to the worst and there is no way out of being the guarantor and these loans default to her she’s going to have to use her pension to pay it. It will be a hard lesson for her but she won’t make the same mistake again.

Hectors_House

sourcrates said:

If push comes to shove, they can demand whatever they like, in order to get the money from her, they would have to go to court.

You/she, would then have the opportunity to put your case to them, and the court, if its unafordable, the court will say so, and Amigo will be **** out of luck, no court will throw an elderly lady out on the street to pay a loan debt, so if you think about this rationally, they have no where to go with this no matter what paperwork they claim to have.

Continue with the complaint, more advice here -

https://www.stepchange.org/debt-info/being-a-guarantor.aspx

Thank you sourcrates.

I know I’m coming across as a !!!!!! but that’s the nature of cold words written down on a screen. My reaction is through shock and fear - fear for her future as much as my own.

macman

So you don't own any other property and you don't live in rented accommodation? Sounds like you are already homeless then?

Hectors_House

macman said:

Hectors_House said:

Aranyani said:

If you don’t live in the house how would selling it be losing your home?

Because I don’t own property elsewhere.

So your 'home' is the property you presumably rent. It's an asset you own 50% of, not your home.

I live over the other side of the country with my partner. He owns the house so, no I’m not renting elsewhere.

Hectors_House

macman said:

So you don't own any other property and you don't live in rented accommodation? Sounds like you are already homeless then?

Lol. No, I live with my partner but, technically I could be homeless at the drop of a hat. I’ve always felt secure knowing that, if needs be I could move back to my home town where I jointly own outright a house.

Aranyani

sourcrates said:

If push comes to shove, they can demand whatever they like, in order to get the money from her, they would have to go to court.

You/she, would then have the opportunity to put your case to them, and the court, if its unafordable, the court will say so, and Amigo will be **** out of luck, no court will throw an elderly lady out on the street to pay a loan debt, so if you think about this rationally, they have no where to go with this no matter what paperwork they claim to have.

Continue with the complaint, more advice here -

https://www.stepchange.org/debt-info/being-a-guarantor.aspx

I don't think the sister is elderly, the OP mentions their father still alive and storing her belongings.  She's vulnerable for mental health reasons. 

Aranyani

Hectors_House said:

Aranyani said:

Hectors_House said:

Aranyani said:

If you don’t live in the house how would selling it be losing your home?

Because I don’t own property elsewhere.

Its still not your home though if you don't live there.  Its her home and your investment currently. 

I completely understand that you don't want her decisions to cost you significant amounts of money, that is completely understandable, but it might be that to protect your self you have to sever the financial ties, and the way to do that is to sell the house and split the equity.  

I understand what you are saying but I’m too old to start again with a mortgage. I probably wouldn’t be able to get one anyway and I’ve worked too hard all my life to end up living in rented accommodation.

If the worst comes to the worst and there is no way out of being the guarantor and these loans default to her she’s going to have to use her pension to pay it. It will be a hard lesson for her but she won’t make the same mistake again.

Why did you buy with her in the first place?  I assume it suited you financially at the time but perhaps was not the wisest idea. 

How old are you and your sister, and are there any plans for you to arrange joint ownership of your current home with your partner?  Would your equity if you sold your house cover that? 

Hectors_House

<edited for clarity>

Arabians wrote:
Why did you buy with her in the first place?  I assume it suited you financially at the time but perhaps was not the wisest idea. 

How old are you and your sister, and are there any plans for you to arrange joint ownership of your current home with your partner?  Would your equity if you sold your house cover that? 

My partner has children from his marriage who will inherit his house once he is gone. Becoming a joint owner of his property isn’t something I’ve considered to be honest and I’m sure his kids wouldn’t like that and I fully understand that.

Plus I have always supported myself and owning my own house was always the plan. I went into joint ownership with my sister because neither of us could afford it on our own and we get on very well -  two incomes are better than one.

To give up what I have worked for and the independence that brings me to be co-owner of a property where there are children waiting in the wings to inherit isn’t something I would be comfortable with.

Aranyani

Hectors_House said:

<edited for clarity>

Arabians wrote:
Why did you buy with her in the first place?  I assume it suited you financially at the time but perhaps was not the wisest idea. 

How old are you and your sister, and are there any plans for you to arrange joint ownership of your current home with your partner?  Would your equity if you sold your house cover that? 

My partner has children from his marriage who will inherit his house once he is gone. Becoming a joint owner of his property isn’t something I’ve considered to be honest and I’m sure his kids wouldn’t like that and I fully understand that.

Plus I have always supported myself and owning my own house was always the plan. I went into joint ownership with my sister because neither of us could afford it on our own and we get on very well -  two incomes are better than one.

To give up what I have worked for and the independence that brings me to be co-owner of a property where there are children waiting in the wings to inherit isn’t something I would be comfortable with.

So ideally you want to continue to hold a 50% stake in the house you and your sister own, which she lives in, and you want to protect that investment from any poor financial decisions your mentally unwell sister may make?  

I'm honestly not sure how that will be possible, if nothing else your credit file will be impacted by hers.  I wish you and her the best of luck though, neither of you seem to have an easy time ahead of you.