Loan secured again property

[SimonTite]

I am going through a slip with my girlfriend. We own a house 50/50 and have a mortgage. We have equity of about �30,000 but we also took out a loan secured against the house about 18 months ago. This is now at about �24,000. We both signed for it jointly but now we are splitting up she is stating that it was my loan as it went on consolidating other loans in my name. This is correct but a propotion of thos loans were taken out and used for purchses for the house for which we have both benefited. The other reason for the loan was to reduce the repayments or risk the house being repossesed. She new this at the time and agreed to this cause of action. She is now stating (as we are no longer together) that she will not make a decision about the sale of the house or buying me out until this secured loan is sorted out. All the advice I have recieved states that she can not do this as the loan is in both our names and we are jointly liable for this amount. What should I do as I feel that even though legally there is nothing, ultimatly she can do, she is delaying things and I just lwant to get on with my life.........

[PrinceRainie]

Hi,
As the loan was taken out in joint names, then you are right, you are jointly liable for the loan, regardless as to why it was taken out originally.
I suspect that if you both stick to your guns then the situation will never resolve itself.
Your options would be to:
1: stick it out.
2: accept liability and keep the loan in your name (so long as the lender agrees and will transfer it to an unsecured loan) which i doubt very much.
3:sell the house which you will have to do if noone accepts responsibility for it and as the loan is secured on the property..! then fight it out afterwards.
4: get a solicitor involved to write her a letter stating your thoughts and concerns....thsi may be enough to scare her into accepting liability.....

I wish you luck...its a horrible situation to be in...but she may back down eventually just so she can move on also..

[Uzoma]

It's a very awkward situation you're in. However, legally, she doesn't really have a leg to stand on as you/your advisers are right. I believe that the terminology is that you both 'jointly & severally' liable for the loan as long as it was taken out in joint names. If you used some of the loan for your own debts, the fair thing to do may be to calculate how much was used to pay off your debts & split the equity accordingly. But without this, she's really shooting herself in the foot as she won't be able to move ahead herself. Whatever you do, continue to make the payments (or the proportionate payments) until you reach a settlement. The worst possible thing you could do is to stop the payments. You may also want to see a solicitor for legal advice.