where do I stand -question from Aunty Jean

tigerfeet2006

Hi, this was posted on the BR board but I thought Aunty Jean might get some good advice here too.


We have a house in joint names where I have lived for 10 years. I am leaving in a months time and will keep up the mortgage payments as I don't want the house to be repossessed.

However, my partner will get into debt as soon as I move out because he won't be able to pay any of the bills, gas, electric, council tax etc. He is due to start work on 2nd Jan but I don't think he will actually start or, will pack it in within a month.

If he, no WHEN he gets into debt (he will no doubt borrow on credit cards etc.) will he be forced to sell the house? If so, what portion would I be entitled to? Will all the debts he has incurred be taken off first and the balance from the sale be shared equally? My concern is that he is likely to run up considerable debts and he already owes me £15k

CLAPTON

I would look to selling the house now.

Would he be agreeable... if not you will need to consult the CAB or a solicitor.

All things being equal you are both entitled to half the value of the house.

If he gets in serious debt then his creditors could make a charge on the property or force him into bankruptcy.

Although your share of the equity is protected its likely that a forced sale will produce a lower selling price than doing it now.

Much better to sort the issue out once and for all now however difficult, rather than to wait for things to become get in a muddle.

Also check out who's name is on the utility bills .. otherwise if he doesn't pay them then you may be chased.

mummytofour

You have a morgage in joint names so there is a financial connection this means that his !!!!-ups will affect you.

CLAPTON

mummytofour wrote: »

You have a morgage in joint names so there is a financial connection this means that his !!!!-ups will affect you.

mummy makes an excellent point... as long as you have a joint mortgage you will be financially linked to him and if he defaults / goes bankrupt etc then your credit record will be damaged by association.

rog2

Just to agree with mummytofour and Clapton - whilst the house remains in joint name you will have joint responsibility for any debt secured against the house.
Speak with a Solicitor - or go to see CAB.
Would he be agreeable to buying your 'share' of the house?

Jenna

Could you "draw down" on the mortgage to the tune of your half of the property value (get it valued professionally), plus the £15k he owes you? You could then get the property transferred solely into his name... his mistakes then shouldn't affect your credit file (I'm sure there's an article on here somewhere saying how to dis-associate your financial records from his).

AuntyJean

Thanks to everyone who has replied.

I have seen a solicitor who advised if he does not agree to selling the property I would need some kind of Deed which would have to go through the courts and cost around £7K. The only other advice offered was that I should continue to pay the mortgage to ensure my credit rating is not affected.

All the bills are in his name with exception to the gas & electric. I will be advising all of the companies of the date I move out and that I will no longer be resonsible for payment (they are all paid by direct debit out of my sole bank account).

If I draw down on the mortgage I will be paying back interest on that too!. However, a thought has occurred to me (thanks to Jenna) that I could use that money to pay off a large portion of the mortgage on my own house (held in my name only).

Will any draw down require both signatures though?

Walter_J

I think you need to convince this bloke that selling the house would be in both your interests.

House prices are falling and are likely to continue falling for a few years yet. You could both easily lose half the equity you now have in the house.

Your ace card is the £15k he owes you.

Offer to write this off (or a portion of it) if he agrees to an immediate sale.

If this doesn't work then search around for a solicitor who knows how to do their job and force him to sell. It is your right.

splishsplash

Hi Aunty Jean,
In the grand scheme of things, £7k for the deed that your solicitor suggested might be money well spent. That way, you could recover your equity in the house, dissolve the joint mortgage and end the association on your credit file with your partner.
As it stands at the moment, you'll be throwing good money after bad if you keep up your repayments. Even if you pay your share of the mortgage and he falls into arrears with his half of the payments, that will reflect on your credit history... can you afford this?
I'm guessing there's no possible way to recover the £15k he owes you with his current financial position - and that's not going to improve if he has to take over the utility bills, insurance etc by himself.
Even if you do keep up the repayments on your own for the remainder of the mortgage (another what, 10-15 years?) what then? You own half a house that he will reside in rent free? He's really not going to want to sell then, is he?
Good luck, I hope you get it all sorted soon.

kittiej

Just a word of caution.

Make sure you actually phone the utilities companies first just to make sure that you will not be held liable because from my dealings with them as long as you are named as the house owner whether jointly or solely they may chase you for outstanding debts.

Worth checking out eh?