Help! Lloyds forcing house sale

scunnyrob · 17 April 2018 at 10:09PM

Hi there, hoping someone can give us some advice...I currently lodge with a wonderful yet non-computer literate lady and am very happy here, but there is something of a dark cloud hanging over us. Please excuse as I have no experience of house buying myself but I will attempt to explain the situation as best I can...

The house is mortgaged through Lloyds for £100k (plus 40k equity from a previous property) which is now around 50% paid off so I understand (£72K still outstanding). After a somewhat acrimonious split from her ex partner who was also on the mortgage around three years ago...the house deeds were transferred fully to my landlady's name. Unfortunately Lloyds bank in their wisdom refused to remove the ex-partner from the mortgage agreement, and have ordered my landlady to sell up, as they dont believe she has the resources to pay the mortgage on her own. Despite this, and through being extremely financially savvy (if not internet-savvy) she has paid the mortgage consistently these past three years (she owns as a lone trader a small clothes shop which makes a small but steady income). All paperwork and returns are available for this, as are details of her rental income.

Unfortunetely the house is on the market and we have to endure weekly viewings which are quite intrusive/time consuming, and the solicitors are constantly sending letters back and forth and charging exhorbitant fees from all this. The house is decorated in a very extreme "Haunted Mansion" gothic style which has so far managed to put off potential buyers so far...but the previous partners solicitors keep insisting on the price being reduced. It is a constant worry that the house will eventually be sold from under us...the poor viewers usually leave scared stiff as well

Im thinking the best way to do this is to remortgage the existing unpaid equity in the house (which is only £72k) with a new mortgage provider. Lloyds are far from my own personal favourite financial company and it grinds me to think that any of my hard-earned rent is making their way into their deep pockets. Apparently it is not a particularly good mortgage anyway with not very good terms. Who would people suggest for my landlady to contact? How would she go about this?

As I say Im not very up on mortages but I would be happy to provide any more information/figures as needed.

Thanks in advance!

BoGoF · 17 April 2018 at 10:18PM

Doesn't make sense - if the mortgage is not in arrears why would Lloyds be forcing a sale.

BoGoF · 17 April 2018 at 10:21PM

Having re- read the post it seems the ex-partner is the one forcing the sale. Has your friend taken legal advice?

scunnyrob · 18 April 2018 at 2:23AM

Thanks for getting back to me. Yes, from what I understand he is wanting the sale, even though he has nothing personally to gain from it. Some bitterness there. Yes, my landlady has taken legal advice. She has also seen an "independant" mortgage adviser who thinks the case is most curious, but has no answers. I will find out more when I see her next.

BoGoF · 18 April 2018 at 6:20AM

Perhaps your title thread is misleading then, its not Lloyds forcing the sale.

Maybe he does have his reasons, for example he will find it difficult to get a mortgage of his own if still showing on the ex's. And from my limited understanding he would have had to went to Court to force the sale .

AnotherJoe · 18 April 2018 at 6:51AM

scunnyrob wrote: »

Thanks for getting back to me. Yes, from what I understand he is wanting the sale, even though he has nothing personally to gain from it. Some bitterness there. Yes, my landlady has taken legal advice. She has also seen an "independent" mortgage adviser who thinks the case is most curious, but has no answers. I will find out more when I see her next.

When then is so much of your post spent railing against Lloyds Bank?????????

Second you say the ex partner has "nothing to gain from the sale" but he most certainly does, as currently he is legally responsible for a mortgage which will make taking out a new one for himself very difficult and most likely impossible.

Third, what do you mean the "independent" (why put it in in quotes?) mortgage adviser "has no answers"? Do you mean "cant find a lender who will lend on this property value given her earnings?" What are they, roughly?

Richey_ · 18 April 2018 at 9:19AM

scunnyrob wrote: »

Im thinking the best way to do this is to remortgage the existing unpaid equity in the house (which is only £72k) with a new mortgage provider. Lloyds are far from my own personal favourite financial company and it grinds me to think that any of my hard-earned rent is making their way into their deep pockets. Apparently it is not a particularly good mortgage anyway with not very good terms. Who would people suggest for my landlady to contact? How would she go about this

Are you hoping for the full amount to be written off because you feel she has not got the best product on the market? She agreed to the terms of her mortgage when she took it out /remortgaged. This is not Like reclaiming money back on a payday loan for irresponsible lending!!

Of course your “hard earned rent” will be going into their pockets either directly or indirectly as you pay your landlady rent and she has a mortgage to pay!

It’s unlikely as easy as paying off the outstanding ballence on the mortgage either. How much does she have to pay her ex from the time he lived there and paid towards the bills and mortgage? Ie his share of the equity.

Are you sure his name is off the deeds? You would need the bank to agree to that as they have first charge on the property and are unlikely to agree with an outstanding joint mortgage.

You clearly have good intentions but this is far more complicated and than what you think and your landlady needs legal advice. It also doesn’t sound like you are being told the full story / the whole truth.

In essence the bank do not have to lend to her, its their money and if she doesn’t fit their lending criteria then they won’t lend to her.

Only other thing she could try is a whole market broker to see if she will fit somebody else’s lending criteria.

Sounds to me like her ex wants his money out and his financial obligations linked to her permenantly severed. Can’t say I blame him and after three years it sounds like he has been more than reasonable.

Finally it’s not “her” house, its 50% hers on paper with her ex minus the money owed to the bank. Sounds like selling and a fresh start may actually benefit her in the long term

tlc678910 · 18 April 2018 at 5:13PM

You could explore getting a joint mortgage for the outstanding amount. You would organise the mortgage in a way that protected your land lady's equity (e.g. a trust deed) then you could go halves on the mortgage and future equity. You would need to discuss what happens if one of you wants to sell or move or else you will be in the same position again.
Tlc

kingstreet · 18 April 2018 at 5:29PM

Richey_ wrote: »

Sounds to me like her ex wants his money out and his financial obligations linked to her permanently severed. Can’t say I blame him and after three years it sounds like he has been more than reasonable.

Finally it’s not “her” house, its 50% hers on paper with her ex minus the money owed to the bank. Sounds like selling and a fresh start may actually benefit her in the long term

He is party only to the debt and not to the ownership.

He wishes for his liability for the mortgage to end and his entitlement to anything more is zero.

Help! Lloyds forcing house sale

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