CCJs and Joint Property 30 November 2022 at 5:22PM in Loans 3 replies 184 views

andykeithharris

A relative has a joint mortgage on a house jointly owned with his ex-girl friend. Subsequent to their breakup, she took out a loan but due to circumstances has defaulted on it and has a CCJ awarded against her. The creditor wants full recompense and is going after the house which is the only asset she has. Can they do this as my relative has had no involvement with the loan

Catsacor

The creditor can only have her percentage of that joint asset.
Surely that joint asset has been sold if they've parted company ?

DullGreyGuy

What was the basis of shared ownership?

If its joint tenants then they each own it in its entirety and so if the lender gets a charge order (or manages to force the sale) then they only get the money to cover the debts/costs and the remainder gets passed back to them to share as they see fit/agree

If its a Tenants in Common then the same can occur but they are capped at the percentage that the g/friend owned and you would get your full percentage

sourcrates

When you say the creditor is going after the house, I`m assuming you mean by way of a charging order.

If the property is held jointly, they may still be able to obtain a charging order, although there are likely to be difficulties. 

On the assumption that the debt is hers alone, the charging order will only apply to her share of the beneficial interest in the property. Whether they receive payment on a sale will depend even more on the level of equity in the property and amounts of any charges with priority over their charge.