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    • Syh
    • By Syh 14th Oct 16, 1:35 PM
    • 7Posts
    • 8Thanks
    Mortgage default with a tenancy in common.
    • #1
    • 14th Oct 16, 1:35 PM
    Mortgage default with a tenancy in common. 14th Oct 16 at 1:35 PM
    About 8 months ago I entered into a tenancy in common with a friend. Unfortunately during the summer he had a brief psychotic episode.

    He felt it had been brought on by extreme stress in his life. Part of the adjustment he made was to leave his job. This wasn't a problem as his student load covered his payments.

    However he has stopped going to uni and unless things change soon he will be leaving and so his payments will stop.

    I doubt he will get benifits anytime soon as he doesn't believe he is ill.

    I haven't talked to him about any off this, I think he would respond badly and also I believe he has the right to try to live his life as he feels fit.

    However I feel I must prepare for him to default on his half of the mortgage. I am unable and unwilling to cover it.

    Can someone explain what is likely to happen in regards to the bank. For instance will they forced ua to sell or will it get repossessed? Should I pay my monthly half when he cant or would that be lost money to me?

Page 1
    • csgohan4
    • By csgohan4 14th Oct 16, 2:02 PM
    • 4,357 Posts
    • 2,718 Thanks
    • #2
    • 14th Oct 16, 2:02 PM
    • #2
    • 14th Oct 16, 2:02 PM
    If he defaults it affects you as well as you are both responsible for the mortgage assuming your part of the mortgage as well.

    This will have serious consequences on your credit history and affect you getting credit or a mortgage in the future

    This is why money and friends/family DO not and should not mix no matter what good intentions you originally have.

    Maybe consider selling?
    • benten69
    • By benten69 14th Oct 16, 2:11 PM
    • 321 Posts
    • 1,326 Thanks
    • #3
    • 14th Oct 16, 2:11 PM
    • #3
    • 14th Oct 16, 2:11 PM
    As above, I would sell before any default occurs. Keep payments up until it is sold, take your half of the money + enough to cover the months you had to pay in full where he couldn't pay his half, then walk away.

    Do not default if you can avoid it.
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    • Thrugelmir
    • By Thrugelmir 14th Oct 16, 3:46 PM
    • 58,165 Posts
    • 51,522 Thanks
    • #4
    • 14th Oct 16, 3:46 PM
    • #4
    • 14th Oct 16, 3:46 PM
    As far as the mortgage lender is concerned the liability is joint and several. There is no 50/50 as you describe. If full payments are not made then the debt may well continue to increase and charges will be levied by the lender. Ultimately the property will be repossessed to discharge the debt owed.

    Ball is in your court. Little point in avoiding a difficult discussion as the problem isn't going away.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • ACG
    • By ACG 14th Oct 16, 4:01 PM
    • 16,689 Posts
    • 8,674 Thanks
    • #5
    • 14th Oct 16, 4:01 PM
    • #5
    • 14th Oct 16, 4:01 PM
    If you paid 99% of the mortgage and he never paid the remaining 1% you would both get a black mark against your name. If you pay half, it will take about 6 months before the bank staartes repossession proceedings (although lenders can vary).

    You signed a commitment to make the repayments on the mortgage, between you, you have to pay 100% of the mortgage. The lender does not care about the splits, just that it is paid.

    If you get a black mark it is not the end of the world but it is very hard to overcome for future mortgages at normal rates. If you have the property repossessed then its going to probably be at least 6 years or a very sizeable deposit before you can buy again.

    Think carefully about whether or not you decide to not pay his half as the outcome can affect you for the next 6 years plus. Best to sell it before it becomes an issue.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Syh
    • By Syh 14th Oct 16, 4:04 PM
    • 7 Posts
    • 8 Thanks
    • #6
    • 14th Oct 16, 4:04 PM
    • #6
    • 14th Oct 16, 4:04 PM
    Thanks for clearing things up.
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