My ex-husband has stopped paying a BTL mortgage

by Readers Question

3 years ago

My ex-husband has stopped paying a BTL mortgage

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My ex-husband has stopped paying a BTL mortgage

7 years ago I put my name on a Buy to Let mortgage with what is now my ex husband (for the past 4 years).bills

I have never had any income from this property, as we agreed that he wanted no further interest in our mortgaged family home and that I wanted nothing more to do with the BTL property.

Three months ago my ex stopped paying the BTL mortgage and all his other liabilities eg. credit cards etc. He has passed no forwarding address onto the mortgage company, even though I have now given them his parents address as this is where he was staying.

As the mortgage company cannot contact him they are repossessing the BTL property and have told me that they will expect me to pay the deficit. I have always paid my liabilities in life, but he believes that he can just leave his behind for somebody else to pick up. I have since learned that the BTL property has been internally destroyed and that the flat is not worth half of what the mortgage is.

When my ex left we did sign (and had it witnessed) a piece of paper saying that we each held no further interest in each others property. I have a court order to say that he agrees to pay everything due for the BTL property and he has signed to agree this.

Because he has stopped paying this, I am going to end up with a repossession and a massive debt. I am wondering if anybody else has been in this situation and could offer any advice on what to do.

Many thanks

MG



Comments

Neil Patterson

3 years ago

Dear MG,

I am very sorry for your situation.

Unfortunately when I worked in Banking and mortgages the most common reason I saw for people having credit problems was due to a split and leaving the ex-partner to pay a joint loan or responsibility.

A mortgage is in normal circumstances joint and several, which means each party is responsible for any amount that is not paid by the other. Splitting the finances is often left until later and you are then still tied to the old partner.

I would personally seek expert legal advice.

Si G

3 years ago

MG would advise to pay at least £1 a month but more is best towards the mortgage, enter into discussions with the lender and try to refurbish and relet to cover the mortgage. If you do these things it will delay or stop a repossession occuring as you will be able to produce evidence in court if the day comes.
If your flat was washing its face before then you should be able to recover the situation esp due to the seeming shortage of rental stock.
Keep all logs of your time and recipts when time comes to sell it so you can recover costs.
As an aside to others avoid joint credit card and bank accounts, harder to avoid joint mortgages.

Harry Chunk

3 years ago

It is always best to try and avoid repossession at all cost. In the short term it may be best to try and enter into dialogue with him or his parents to try and work out a practical way forward. Do you have keys to inspect the property yourself. You may find that if you can afford to restore the property to a lettable condition then you can rent it long term to the local council to save you the bother. As other posters have said the position is probably not yet irrecoverable but you need to enter into communication with the mortgage company sooner rather than later. Keep detailed records of any money you spend. Unfortunately although you had quite a long post there is still much more information needed to work out a strategy to get you out of this hole.

Luke P

3 years ago

If this does continue to go pear-shaped, I would be less worried about 'ending up with a repossession' as such -it could possibly even lead to (dependent on the amount of the shortfall after repossessed sale) with the forced sale of your family home.

What I'm saying is that it's more than just a black mark and a massive debt to pay as and when you're able. The BTL loan company will want whatever they can recover immediately.

Rob Crawford

3 years ago

Hi MG,

You really need to get some legal advice as quickly as possible. They can then determine your liability as advised accordingly.

MG Williams

3 years ago

Thank you all very much for all your advice. I have sought legal advice.

MG Williams

3 years ago

Reply to the comment left by "Harry Chunk" at "19/10/2015 - 13:03":

Thank you very much for your advice. I have never had keys for the flat. I did go and see its state of disrepair at the weekend to discover that the top flat which had nothing to do with me is now under repossession. The main door to the property has been broken into, but the flat that I have my name on was locked. I believe from the neighbours that a squatter has been living there. I did try years ago to remove my name from the mortgage but my ex would not fill in the paperwork that was sent from the mortgage company. What really annoys me is that I have never had any rental income from this property and now I will be left with the repossession as he has disappeared. I have tried talking to the mortgage company but they have said that as they cannot find him that the outstanding debt will come back to me.

Si G

3 years ago

Reply to the comment left by "MG Williams" at "20/10/2015 - 06:36":

Looks like joint and several liability id advise you to gain entry and secure the flat then you can assess costs to refurbish it

Luke P

3 years ago

It is unfair. Completely unfair.

But why do people (and not aimed at you personally), get married without realising it is an awful lot less to do with dresses, cakes and a big party and everything about forming a contract with the state. Even after divorce, there are still legal implications on both parties from ventures entered into (such as this BTL mortgage), when still married.

As Simon has alluded to, it is YOUR flat too. Gain access. Evict any squatters. Tidy it up and either sell or re-rent...keeping the lender in the loop which should hopefully buy you some time.

Surely better than risking everything you have.

Harry Chunk

3 years ago

Reply to the comment left by "Luke P" at "20/10/2015 - 11:07":

If there are any squatters call the police straight away as it is now illegal to squat in a residential property. Ryan Giggs will tell you that.

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