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Can i do something about getting out of my mortgage?

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  • Can i do something about getting out of my mortgage?

    Hi all,

    roughly 8 years ago my ex-work colleagues and I purchased a property together instead of begining a pension scheme. 3 years ago i left the company but we all still maintained a good relationship with regards to the property. I am now at a stage where i just simply want to see some financial gain from it or to be mortgage free as i am looking to get my own mortgage soon. Does anybody know of anyway i can either resign myself from this mortgage or is there anyway im legally allowed to free up any equity in exchange for the ex colleagues getting my share of the property when it eventually sells?

    any advice or help would be great! as you can probably tell i am completely at a loss with this situation.

    Thanks!!

  • #2
    Re: Can i do something about getting out of my mortgage?

    The ideal thing would be for you to sell your share in the property to the other co-owners, and be released by the mortgage lender from liability in respect of the mortgage. If the lender will not release you, you will remain stuck with liability under the mortgage, even if your co-owners indemnify you againstt that liability

    In view of the reason for purchase, I am surprised there is (apparently) no trust declaration, setting out what should happen in these (and other) circumstances
    This is based on my experience as a conveyancing solicitor in England, but I do not accept liability for information I give in this forum

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    • #3
      Re: Can i do something about getting out of my mortgage?

      Your best option is to short sale. It will not effect your credit as horribly as a foreclosure. You will need to talk to your mortgage company, to see what other options you have.

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      • #4
        Re: Can i do something about getting out of my mortgage?

        Your best option is to short sale.
        Perhaps we could have an explanation of what this is. Or is someone using US terminology? Although foreclosure is ancient remedy that is still technically available, nobody uses it in England/Wales - lenders seek possession so they can sell.

        OP can't sell property without other co-owners joining in unless she gets a court order (expensive and not necessarily forthcoming).

        Lender is only likely to release OP from mortgage obligations if other co-owner(s) agree AND lender is happy that remaining co-owner(s) is/are sufficiently credit worthy.

        Other co-owner(s) would have to buy out OP for her share of the equity in the property - that's the only way she will get anything - but presumably the other co-owner(s) won't be able to raise the extra cash at the moment.
        RICHARD WEBSTERwww.rwco.co.uk
        As a conveyancing solicitor I want to be helpful (England/Wales only) but can't accept liability for this.

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