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Thomas, Lawyer
Category: UK Law
Satisfied Customers: 7602
Experience:  BA (Hons), PgDip, Practising Solicitor
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I have 2 buy to let properties which i cant afford to keep

Resolved Question:

I have 2 buy to let properties which i cant afford to keep the repayments up on. If they are repossesed can the lender repossess my private home for any shortfalls? My private home is with a different lender altogether.
Submitted: 6 years ago.
Category: UK Law
Expert:  Thomas replied 6 years ago.
Thanks for your question.
To enable me to answer your question could you please respond to the following:-
1. Do you have any family living in your home
Kind regards.
Customer: replied 6 years ago.
Yes my female partner and my 2 children from my previous marraige come and stay with me every 2 weeks.
Expert:  Thomas replied 6 years ago.

Do you own the proper solely?

Customer: replied 6 years ago.
not on my own, my partner and i own together..we have a mortgage on it.
Customer: replied 6 years ago.
By the way my partner is not on the buy to let mortgages. i bought them with my brother.
Expert:  Thomas replied 6 years ago.

Thanks for your reply.

In the event that a creditor (ie. lender on one of the buy to let properties) obtains judgement at Court on the debt owed to them then they may seek to enforce the judgement by apply to Court for a charging order over your property which if registered as a final charging order (after first being registered as an interin charging order) would prevent the sale of the property without the debt to which the charging order relates being paid off.

The creditor and beneficiary of the charging order could apply to the Court for an order for the sale of the property to recover their money. You would be informed of any such application and would obviously make representations as to why the order should not be made (eg. It is your residential home and that of your partners)

The charging order would only be against your interest in the property – your partner’s is protected.

The alternative is that the lender obtains judgement and then petitions for your bankruptcy, including your share in the property. In these circumstances you can ask your trustee in bankruptcy to postpone the sale of your home until after the first year of bankruptcy. Your partner could also make an offer to buy your interest in the property.

Basically though, I’m afraid that your interest in the property is at risk in the event of mortgage default on your buy to let properties.

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I will answer your follow up questions you may have.

Kind regards,

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