Questions on getting out of a joint mortgage .

[armanimick]

My neice's boss took out a mortgage with her. He rents the place out to pay the mortgage.

She has not been given any rent ( duh) but was happy with that to get her foot on the property ladder. She in her ignorance signed for him to take out some equity on the property to try to salvage his business. Since his business has gone bust they have lost touch.

She wants out and sent a solicitor letter saying to the effect for 7K he could buy her out. He ignored the letter, still pays no rent.

The solicitor wants 800 up front to continue the case and says it could be 2. 3 K to take him to court. All she wants is to get off the mortgage, if poss come out with some equity... Any ideas as to what she can do. Both her and her mum trusted the boss and are living to regret it..

Many thanks for any tips / advice

[ummmm]

Is the mortgage being paid with the rent?

[buildersmate]

Durrrr......
'He rents the place out to pay the mortgage. She has not been given any rent.......'
....ergo, there is rent coming in that pays the mortgage.
Just how more obvious could that get.

[themas]

BM - Yes - just what I thought!

If I've got this right, she put no money into the property herself, but is a joint owner & on the mortgage. There is also a joint second charge (for the equity he took out). She wants to get off the mortgage & second charge, & wants some money from the joint owner to do so. If I'm correct, & she has put nothing into the property why does she want money to get out?

She can only get off the mortgage & second charge if the lenders agree. That may be difficult to achieve, as the boss's business went bust & he may well not have enough income to support the mortgage & charge himself.

There is a Mortgage Code of Practice (MCOB) which should be followed by mortgage lenders. I don't know the content. She needs to get this checked in case there is anything there giving the lender responsibility for ensuring that someone in her position is properly advised before taking on the responsibility of a mortgage. If this is part of the code & the lender did not carry out their responsibility in accordance with it, she may be able to succeed in an argument that she has no liability for the mortgage. This is a long shot, but she could approach local CAB to see if they can help.