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icewolf
Starting Member
4 Posts |
 Posted - 14 December 2011 : 14:21:48
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I have a bit of a complicated situation I am hoping you can help me with.
I had a joint mortgage with an ex partner. Throughout the period of the mortgage I made the payments to the mortgage.
We broke up and I moved out, continuing to pay the mortgage
I found out that in November last year that my ex had made himself bankrupt and had put the mortgage as part of the debts. I was still paying the mortgage at this time.
His insolvency company wrote to me and sold me the beneficial interest for £1 + fees. Which I thought meant I then owned the entire house.
He has since vacated the property but I have discovered he is still on the deeds and is acting as if he owns the house, preventing me from trying to sort out the debt. he is also still named on the mortgage
I have within the last few months stopped paying the mortgage because I am on interest only and it seems the only way to force a sale of the house as he will not give permission to do anything (and I actually don't know where he is now)
The mortgage company says i am only allowed to fully take over the house if I pay the negative equity, a deposit and have a whole new mortgage which is impossible.
I have someone from the mortgage company coming to discuss the situation in the new year.
But basically... When I bought the beneficial interest, why did he remain on the mortgage and the deeds. Does this actually mean that even though he went bankrupt he is still liable for the money owing?
Or do I owe the whole amount but somehow not actually own the house? I am starting to worry that he is going to pull me into bankruptcy with him at this rate |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 14 December 2011 : 16:02:02
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Hi icewolf,
Unfortunately, he does still own the house and any shortfall from a repossession or sale will be written off in his bankruptcy.
You still own the house and you will be liable for the full amount of any shortfall.
Sorry you are in this situation, please post if you need advice.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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icewolf
Starting Member
4 Posts |
Posted - 14 December 2011 : 16:42:52
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Thanks for the reply.
The house hasn't been repossessed or sold. He is now discharged.
How is it right that he can wipe off hid debts on the house. Leaving me to owe all the costs, have no interest in the house and yet still own it? Seems a tad unfair  |
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RHB
Senior Member
1159 Posts |
Posted - 03 January 2012 : 07:40:47
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I think the reason is because of the negative equity, there is in fact nothing to "own" just to owe.
Obviously you don't want to pay a mortgage for someone else to live there & also you don't want to get in a financial mess. Even if you hadn't bought his BI he still would have had it handed back to him as the house isn't an asset, as there is no equity. |
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Steve Thatcher
New Member
United Kingdom
70 Posts |
Posted - 06 January 2012 : 12:09:06
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Hi it is because there is a distinction between legal and beneficial ownership. If the house increases in value to the extent thatit develops positve equity then all that equity is yours, as you now own his beneficial entitlement.If you were to be able to sell it then, the mortgage would be paid and you would get a cheque for the equity.
Steve Thatcher
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I have a bit of a complicated situation I am hoping you can help with
