X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Legal FAQs

    2 BTLs in joint names with my ex-.

    My ex- and I bought 2 BTLs in joint names (tenants in common), with mortgages also in joint names. It seemed a good approach at the time for bolstering our pensions. She left in 2012 and I have been managing the properties since. We maintain a joint bank account for them, and split the 'profits' (Ha! Ha!) equally for tax purposes. There is no equity!

    The time has come when I must regularise this situation. She is happy for me to continue managing everything, but I've had enough. Also, I can see problems ahead when we come to re-mortgage in a few years or, god forbid, one of us is no longer around.

    I have not yet approached the mortgage providers.

    Can someone please advise my first steps.

    0
    0

    Hi Lou,

    Forgive me, but I do not fully understand the situation.  Why can't you just sell them?

    0
    0
    Negative equity! It was a very bad decision! 
    I have proposed we assume 100% ownership of one each, and make our own arrangements to mitigate the problem.
    0
    0

    Lou - how much is the shortfall from o/s mortgages?

    0
    0

    My opinion (for what it's worth): Sell them off and take the hit. Don't hold and hope for the value of the house to recover, whilst doing a management job that you don't want to do for a partner you have separated from. It could become very stressful and actually have some negative impact on your health and well being. Try to offer the mortgage lender a full and final settlement figure and see if they will work with you to get out of the situation, or use a debt management specialist to help you get out.

    I think in situations where you and your partner are going separate it's best to have a clean exit; try to get out with minimal damage and move on with your future plans. 

    Hoping the market will recover can be a dangerous play if you aren't careful. Then you start wishing. Then the prayer mat comes out and all of a sudden you start getting religious..

    If It was me I'd personally just sell for whatever I can get, try to get the lender to work with you. It might be hard now but in the long run you will be relieved.

    Just my opinion obviously.

    0
    0

    The implication here seems to be that neither party has the funds to make up the shortfall - though I do have an acquaintance who despite poor credit history managed to get non secured bank loans of £30k over past few months.

    0
    0

    Could you not just put out to management as this will take away the stress of dealing with tenants?

    Failing this could you sell or even option to another investor or someone with new enthusiasm to step into your shoes?

    Nothing worse than having dud props!

    0
    0

    You could arrange it so you are tenants in common with unequal shares

    Say 60/ 40 split with you getting the bigger share to reflect the work you put in that she doesnt

    0
    0

    Jonathan Clarke. http://www.buytoletmk.com

    Thanks all for your comments.

    The income more than covers the outgoings, and we do have a healthy balance. We also now have RTM on both, so much of the stress has gone. No personal cash or debt problems. My main concerns are long term ownership, re-mortgaging in a negative equity situation, and my ex- who will struggle to cover her share of the shortfall, is not easily contactable, and hates paperwork!

    Simple!
    0
    0