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Clare
Clare, Family Solicitor
Category: Family Law
Satisfied Customers: 34271
Experience:  I have been a solicitor in High Street Practise since 1985 and have specialised in Family Law for the last 10 years
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I entered into a joint mortgage and my friend left over 5 years

Resolved Question:

I entered into a joint mortgage and my friend left over 5 years ago when my girlfriend became pregnant- he has paid nothing since and his name is ***** ***** the mortgage.
At the same time we took out a seperate joint loan for 20k and again he has paid nothing since leaving 5 years ago. I believe he has since filed for bankruptcy but did not include the loan or the morgage in the details.
The house is in negative equity and I need to move due to another child on the way.
What are my options regarding him paying his half of the loan
How do I ensure he pays his part of what is owed of the property if we leave.
Submitted: 3 years ago.
Category: Family Law
Expert:  Clare replied 3 years ago.
Hi
Thank you for your question.
My name is Clare
I will do my best to help you but I need some further information first.
How much is the house worth and how much is outstanding on the mortgage and the loan?
Clare
Customer: replied 3 years ago.

Hi Clare,

the house is worth around 80-90k , I have not had it valued as yet. The motgage outstanding is 100k. The mortgage is currently on "interest only"

Expert:  Clare replied 3 years ago.
Hi
What were the loan monies used for?
Clare
Customer: replied 3 years ago.

The loan monies were originally intended for house upgrades but were frittered away on personal items

Expert:  Clare replied 3 years ago.
Hi
Who spent it?
Clare
Customer: replied 3 years ago.

Hi Clare,

both parties. Around TV's, furniture etc etc

Expert:  Clare replied 3 years ago.
Hi
Who kept the furniture?
Clare
Customer: replied 3 years ago.

Hi Clare,

It was left in the house when the other party left, some has since been replaced eg 50" tv that became defective.

Expert:  Clare replied 3 years ago.
Hi
Have you approached the Mortgage Company about selling the property?
Clare
Customer: replied 3 years ago.

not yet Clare. I need to know where I stand with the other party and whether I am only liable for half of the debt, or if he cant pay his hald, am I legally liable for his debt as well. Same goes for the loan.

If we sell and , due to negative equity we still owe say £5000, can I pay £2500 and he owes the rest? Again, same with the loan.

Expert:  Clare replied 3 years ago.
Hi
Sorry - just to check - when was the property purchased?
Clare
Customer: replied 3 years ago.

Hi Clare,

2006

Expert:  Clare replied 3 years ago.
Hi
So far as the mortgage company is concerned you are "jointly and severally" liable for the mortgage and the loan and they can pursue either or both of you for the debt if they so wish.
However as between you and your friend I am afraid that he has a very good argument for claiming that you shoudl reimburse him for any monies he has to pay out since you alone have had the benefit of living in the property and using the items that were purchased with the loan
If you have to go to court to force a sale then I am afraid that it is likely that the court will order that you are responsible for the bulk of the debt - although if you can prove that he paid any debts or purchased items that he kept with the loan you shoudl be able to salvage a proportion o fit from him.
I am sorry - I know that this is bad news but sadly it is the position that you are in
Please ask if you need further details
Clare
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