How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Clare Your Own Question

Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 33809
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
13262538
Type Your Law Question Here...
Clare is online now

My late husband tookout a shared appreciation mortgage and

Resolved Question:

My late husband tookout a shared appreciation mortgage and although I was asked to sign the repayment document. I was not party to the original application and was not given any advice or had any discussion with the agent. Having sold the property I discover documents have a wrong name and date of birth for me.
I have tried several avenues to put my case forward to the institutions involved. What can I do now? Please help
Thanks
Submitted: 3 years ago.
Category: Law
Expert:  Clare replied 3 years ago.
Hi
Thank you for your question.
My name is XXXXX XXXXX I will do my best to help you but I need some further information first.
For clarity - you were aware of the application and the money was received?
Are you in a position to repay the original funds?
What were the funds used for?
Clare
Customer: replied 3 years ago.

The funds were used for home upgrading and yes it has now been repaid (share appreciation mortgage scheme)


 


Optional Information:
System of Law: England-and-Wales

Already Tried:
Wriring to the Financial Ombudsman

Expert:  Clare replied 3 years ago.
Hi
What issue are you trying to address at this stage?
Clare
Customer: replied 3 years ago.


I would like to take legal action against the institution who:


1- Failed in their duty of care to advice me of the implications of signing the document.


2- Using a wrong name and date of birth to process the documents


3- Had the agent made sure I was part of the negotiations He would have had my corrct name and date of birth


Regards


Merle

Expert:  Clare replied 3 years ago.
Hi
What loss have you suffered?
Clare
Customer: replied 3 years ago.

Good day Clare


 


 


75% of the sale price of the property appx £253000


 


Thanks for your responses so far

Expert:  Clare replied 3 years ago.
Hi
I am sorry - I though you accepted that the money was received and used - is this not the case?
Clare
Customer: replied 3 years ago.


Good day Clare


Please forgive me but let me explain:


Shared Ownership mortgate in1979 allowed retired home owners to borrow money using their home as collateral.


 


The loan amount £50,000 interest free to be repaid when the property is sold.


 


The condition attached is the lender is entitled to 75% of any increase in the value of the property. Property value increased.


 


So the final repayment on the sale of the property was £50,000 plus 75% of any increase in the value.


 


My late husband was the one who applied for the loan. After his death the property was sold. I had to repay not only £50000 but also an additional £243,750. Total = £293750.


 


Unfortunately I signed papers but I was not made fully aware of the additional 75% payment. As I said before had I been party to the original negotiations I would not have signed. I signed only when the lenders returned the documents to say the Title has two names therfore requires two signatures. Later documents from the lenders that I had not seen before revealed my incorrect name and date of birth.


This is just a summary of events


Hope this explains a little further my reason for wanting to take legal actions to recover my lossess.


 

Expert:  Clare replied 3 years ago.
Hi
For clarity - you were aware of the loan BEFORE the money was received and you did sign the paperwork - and could have refused is that correct?
Clare
Customer: replied 3 years ago.


Yes I was aware of the loan before the money was received


Yes I did sign because I understood at the time that on the sale of the property the loan of £50,000 would be repaid. I was quite happy to repay it.


 


What was not explained to me was the additional 75% increase of the value of the property, which had to be repaid in addition to £50,000.


 


As I said before the application was signed by my late husband as he conducted the initial discussions with the agent who sent the documents off to the lenders. The agent failed to take into account the joint ownership, document required two signatures and as such failed to advise me of the implications. The lenders returned the document saying my name is XXXXX XXXXX Title of the property and that requires that I sign the document as well. That was the first time I saw the application.


 


If I understood the implications I would not have signed as it left me unable to purchase even a small flat. I was left lodging with neighbours. I now owe the lenders £50,000 again which they offered as compassionate loan to be repaid when this new property (a retirement flat) is sold.

Expert:  Clare replied 3 years ago.
Hi
what Interest did you think would be paid?
For clarity - why was this repayable on the death of your husband - rather than that of the second to die?
Clare
Customer: replied 3 years ago.


The loan is interest free. Repayment is not conditional on death but when the property is sold.


 


See Share Ownsership mortagae scheme 1979.


 


The issues raised here are:


1- I was not advised of the additional 75% payable


2- The application that the agent completed has my name and date of birth wrong, this is because he did not consult with me when he completed the form himself.


3 - I was not party to the original discussions he had with my late husband.

Expert:  Clare replied 3 years ago.
Hi
I understand the issues but the problem is that you signed the paperwork and personally benefited from the monies
Are you saying that you were coerced into signing them?
Clare
Customer: replied 3 years ago.

Hello Clare


Thanks for getting back to me


 



Yes I was coerced into signing the documents


 


Merle


 

Expert:  Clare replied 3 years ago.
Hi
Do you have any evidence of this/
Clare
Customer: replied 3 years ago.


Hi Clare


Yes I have the document I signed with the agent witnessing my signature


Merle

Expert:  Clare replied 3 years ago.
Hi
What evidence do you have of the coercion?
Clare
Customer: replied 3 years ago.


The only evidence is the agent saying if I did not sign my husband would not get the loan. So maybe more pressured into signing than coerced.

Expert:  Clare replied 3 years ago.
Hi
What reason did the Ombudsman give for rejecting your complaint?
Clare
Customer: replied 3 years ago.


Hi Clare


 


In FOS letter dated Jan 10th 2013, I quote


 


"You will see from the papers that the advice to take out the plan was given by a representative of .................(I have ommitted the company's name for now). I am sorry to have to tell you that it appears we cannot consider the complaint. In simple terms this is because the provision of a mortgage advice was not a regulated activity at the time.


Mortgage advice did not become a regulated activity until 31 October 2004.


 


Other paragraphs of this letter:


Although parliament intoduced transitional order, this company was not a member of the Mortgage Code Compliance Board when it provided advice. The company neede to have held membership immediately before 31st October 2004.

Expert:  Clare replied 3 years ago.
Hi
Is the agent still around at all?
Clare
Customer: replied 3 years ago.


Hi Clare


 


I don't know.


I have his address at the time my husband did business with him, I would have to put a trace on it to find out, not sure how though


Merle

Expert:  Clare replied 3 years ago.
Hi
Please excuse this question - it is very relevant but does seem intrusive - is there anyone who might confirm that your late husband was a forceful man.?
Clare
Customer: replied 3 years ago.

Hi Clare


No not really


Merle


 

Expert:  Clare replied 3 years ago.
Hi Merle
The problem is that you did sign the document and from what you have said there is no evidence that a refusal would have put you at risk.
It is clear that you were not involved actively in the paperwork since your name and dob is wrong.
However it is not unusual for one partner to take the lead.
Since this was not a loan for a separate business there was (and indeed still is) no requirement for the other person to be advised to take separate advice on the implications - since you will both benefit then your signature is accepted at face value.
In the absence of any evidence that not signing would have placed you at risk I am afraid that there is simply no way forward with reference to any case law currently in existence.
I am sorry - this is not the news I would wish to give - but I have looked at every possible aspect
Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 33809
Experience: I have been a solicitor in High Street Practice since 1985 with a wide general experience.
Clare and other Law Specialists are ready to help you

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Jo C.

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
< Previous | Next >
  • http://ww2.justanswer.com/uploads/EM/emus/2015-7-7_192327_bigstockportraitofconfidentfemale.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
  • http://ww2.justanswer.com/uploads/BE/benjones/2015-12-1_0437_ennew.64x64.jpg Ben Jones's Avatar

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    11553
    Qualified Solicitor - Please start your question with 'For Ben Jones'
  • http://ww2.justanswer.com/uploads/BU/Buachaill/2012-5-25_211156_barrister5.64x64.jpg Buachaill's Avatar

    Buachaill

    Barrister

    Satisfied Customers:

    1754
    Barrister 17 years experience
  • http://ww2.justanswer.com/uploads/JO/jojobi/2013-3-19_0265_maxlowryphoto.64x64.jpg Max Lowry's Avatar

    Max Lowry

    Advocate

    Satisfied Customers:

    894
    LLB, 10 years post qualification experience
  • http://ww2.justanswer.com/uploads/UK/UKLawyer/2012-4-12_9849_F2.64x64.jpg UK_Lawyer's Avatar

    UK_Lawyer

    Solicitor

    Satisfied Customers:

    750
    I am a qualified solicitor and an expert in UK law.
  • http://ww2.justanswer.com/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    402
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • http://ww2.justanswer.com/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    8199
    LL.B (Hons), Higher Prof. Dip. Law & Practice