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Steve.65
Starting Member
1 Posts |
 Posted - 07 September 2016 : 17:57:33
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I have just been advised that I am still on a BTL mortgage and on the Title Deeds, yet this property was included on my bankruptcy back in 2010.
My ex partner bought me out via the OR but apparently because the lender, Capital Home Loans (CHL) wasn't lending at the time, they say that they can't remove me from the mortgage and that I would still be liable if my ex partner cannot pay.
CHL are still not lending and say that there is nothing they can do.
Surely if all my debts were included in the bankruptcy then my liabilities ended when the Judge declared me bankrupt?
Is there anything that can be done?
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 08 September 2016 : 08:57:47
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Hi and welcome,
Do you still have any paperwork relating to your ex buying you out? I don't see why the fact that they are not lending should prevent you being removed.
Hopefully Lisa will be along later to advise - you could visit your local CAB for some advice as well.
The friend in my adversity I shall always cherish most. I can better trust those who helped to relieve the gloom of my dark hours than those who are so ready to enjoy with me the sunshine of my prosperity. – Ulysses S. Grant
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 09 September 2016 : 11:46:28
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I have contacted Lisa and she hopefully will be along later to advise.
The friend in my adversity I shall always cherish most. I can better trust those who helped to relieve the gloom of my dark hours than those who are so ready to enjoy with me the sunshine of my prosperity. – Ulysses S. Grant
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Lisa Thomas
forum expert
United Kingdom
35 Posts |
Posted - 09 September 2016 : 16:15:09
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Hi Steve
I'm afraid the problem is although your partner might have bought you interest in the property at the time it sounds like you were not taken off the mortgage as a party to it, which is very common.
My understanding is that there are two ways of dealing with a transfer of interest - an assignment, which is probably what happened here with no need for the bank to get involved in it, or a formal transfer document.
Had a formal transfer document been signed and registered at the land registry this would have needed consent from the bank to remove you as a party from the mortgage.
I suspect the assignment was done in your case in which case I'm afraid as it stands you will still be jointly and severally liable for any shortfall if anything happens to the property.
Did you take any legal advice at the time?
I can recommend a solicitor to speak to if you want to try and resolve this and get a formal transfer sorted out but ultimately the Bank will need to give you consent to remove your liability.
Contact me on 01752 786800 or Lisa@nevilleco.co.uk |
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Steve65
Starting Member
34 Posts |
Posted - 14 September 2016 : 19:34:23
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quote:
Originally posted by Lisa Thomas
Hi Steve
I'm afraid the problem is although your partner might have bought you interest in the property at the time it sounds like you were not taken off the mortgage as a party to it, which is very common.
My understanding is that there are two ways of dealing with a transfer of interest - an assignment, which is probably what happened here with no need for the bank to get involved in it, or a formal transfer document.
Had a formal transfer document been signed and registered at the land registry this would have needed consent from the bank to remove you as a party from the mortgage.
I suspect the assignment was done in your case in which case I'm afraid as it stands you will still be jointly and severally liable for any shortfall if anything happens to the property.
Did you take any legal advice at the time?
I can recommend a solicitor to speak to if you want to try and resolve this and get a formal transfer sorted out but ultimately the Bank will need to give you consent to remove your liability.
Contact me on 01752 786800 or Lisa@nevilleco.co.uk
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Steve65
Starting Member
34 Posts |
Posted - 14 September 2016 : 20:13:31
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Hi Lisa
Apologies for the late reply.
If it was just an assignment and I'm still legally liable for the mortgage should anything happen to my ex partner, how can I go bankrupt and have all my debts removed by a court order but 6 years later, find that I still have this debt potentially around my neck.
This debt was included in my bankruptcy and I was not informed that in actual fact I could still be liable.
The lender says that they will not take me off the mortgage.
If this is quite common, why, when a Court Order has been made to relinquish me of my debts, does this mortgage debt still stand in my name?
I didn't take legal advice as I didn't realise I would need it. Would the OR not have had to contact the lender to advise them of taking ownership of my share of the property?
Does it mean that this Court Order actually has no clout legally?
I would be interested to hear from others how they got around this problem if it's quite common with a lender that won't play ball.
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 15 September 2016 : 08:39:51
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Sounds like a total nightmare Steve!
Give Lisa a call and speak to the solicitor she recommends. The advice will be free and he/she may be able to assist you.
The friend in my adversity I shall always cherish most. I can better trust those who helped to relieve the gloom of my dark hours than those who are so ready to enjoy with me the sunshine of my prosperity. – Ulysses S. Grant
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Lisa Thomas
forum expert
United Kingdom
35 Posts |
Posted - 16 September 2016 : 11:51:14
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Hi Steve
The debt would not have been included in your Bankruptcy as the Bank would have been relying on their security. Only unsecured creditors would have been dealt with in the Bankruptcy.
Had, for example, the property been repossessed around the time of your Bankruptcy and there was a shortfall then that shortfall would have been dealt with/written off in your Bankruptcy.
As it stands if something triggers the sale of the property and there is a shortfall now you will be jointly liable for it.
Your equitable interest in the property might have been dealt with at the time but you responsibility for any liability remained I'm afraid.
Contact me on 01752 786800 or Lisa@nevilleco.co.uk |
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Steve65
Starting Member
34 Posts |
Posted - 21 September 2016 : 12:49:52
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Fortunately, the equity in the property is substantial according to property values now, so there will be no shortfall but basically what you're saying is that although I have no right to the property in the way of equity or ownership, I still own the debt jointly with my ex and if anything happens to her, I am solely responsible for that debt. I cannot even put the property on the market if she dies as I am not the owner of the property and presumably, not on the Title Deeds any more. Ownership will automatically pass to her Daughter through a Will and for all I know, the mortgage could still be in place and I will have to start paying it even though I have no legal rights on it.
Sounds very fair when you consider that bankruptcy is a last resort to get you out of debt and to give you a clean slate to start over again but it seems that if you had a joint mortgage at the time of bankruptcy and the OR transfers ownership to your ex partner, you're actually still in debt because you weren't told that the mortgage doesn't count as a debt!!
My ex could remortgage but she won't because the rate she is on is so low and it will cost a lot more in monthly payments, even though she would love me to be off it, so I seem to be stuck between a rock and a hard place, as they say.
Happy days!
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 21 September 2016 : 13:17:55
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Not good Steve and I really feel for you. Have you spoken to a solicitor?
How much longer is there to go on the mortgage?
The friend in my adversity I shall always cherish most. I can better trust those who helped to relieve the gloom of my dark hours than those who are so ready to enjoy with me the sunshine of my prosperity. – Ulysses S. Grant
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Steve65
Starting Member
34 Posts |
Posted - 21 September 2016 : 14:11:14
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There's a £190,000 outstanding and about 17 years left on it. Not spoken to a Solicitor yet as I just don't have funds to carry out any recommendations that may be forth coming, let alone the Solicitors fees.
My concern is that if I can't pay the mortgage if it ever came to it, then the lender can't repossess the property from me, as I don't own it legally.
So what happens then?
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 21 September 2016 : 17:20:26
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You can always have a free half hour consultation with a solicitor.
I'm not totally sure about this but I think they could repossess?
Have you spoken to Lisa at all?
The friend in my adversity I shall always cherish most. I can better trust those who helped to relieve the gloom of my dark hours than those who are so ready to enjoy with me the sunshine of my prosperity. – Ulysses S. Grant
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Lisa Thomas
forum expert
United Kingdom
35 Posts |
Posted - 22 September 2016 : 09:06:57
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You might still named on the title deeds. I don't believe that the assignment of your interest would have taken you off the deeds.
However in essence my understanding is that you are right I'm afraid - although you no longer have an interest in the property as your name continued to stay on the mortgage you continue to be liable for it.
You need a specialist solicitor to help see if they can sort this for you.
Contact me on 01752 786800 or Lisa@nevilleco.co.uk |
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Topic |
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Can anything be done to remove me from the liability of a BTL mortgage ?
