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Thomas, Lawyer
Category: UK Property Law
Satisfied Customers: 7617
Experience:  BA (Hons), PgDip, Practising Solicitor
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My husband has his own business and is funded by a bank, of

Customer Question

My husband has his own business and is funded by a bank, of which he had a personal guarantee against our home of £50,000 - I was not aware of this until recently and yesterday opened a letter and revised contract which states that the personal guarantee has now increased (as agreed with my husband) to £100,000.00. There was a contract for him to sign.
My husband and I have a joint mortgage and I have not agreed to this at all, I am very concerned with my husbands dishonesty over a few issues and I am worried for myself and our two young children, regarding our home being at risk.
Previously, my husband signed the the £50,000 guarantee without my knowledge and I only found out by chance, again I had no knowledge of this significant increase.
Can my husband put our home at risk, without my consent?
Would I also not need to sign the document, as I own half of our home?

I look forward to receiving some advice.

Many thanks

Submitted: 5 years ago.
Category: UK Property Law
Expert:  Thomas replied 5 years ago.
Thanks for your question.
To enable me to answer your question could you please respond to the following using the same numbering:-
1. You haven’t signed anything relating to the guarantee, correct?

Kind regards.
Customer: replied 5 years ago.
1. I have stated above that I have not signed anything
Expert:  Thomas replied 5 years ago.

Thanks for your reply, just needed to be sure.

If you have not signed the guarantee relating to this loan then the creditors of your husband would only have an action against his interest in your property. Your interest would be ring-fenced.

Your best positioned to know how to deal with this, but I’m sure you are not so naive to think that husbands in the past have not forged their wife’s signatures to such documentation. I’m not suggesting he has done this but you need to be aware of the possibility.

In the event that the creditors to action, either by a bankruptcy petition for your husband or by applying to Court for an order for sale you would have to make representations stating that your interest should not be included in the judgement and establish what the extent of your interest is. Unless there is any agreement to the contrary there is a presumption you each retain a 50% interest in the property.

You would also be entitled to make representations as to why the home should not be sold (eg. family home)

If you were named as guarantor on the guarantee then the bank would have to get your signature.

If it were just your husband on the guarantee then your signature would be preferential but not a pre-requisite to the guarantee being enforceable.

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Kind regards,

Customer: replied 5 years ago.
Can I prevent the guarantee from taking place? Surely he has no right to sign something which is mine also?
Expert:  Thomas replied 5 years ago.
Hi Kathryn,

That's the point, he's only has the capacity to guarantee that part of the property that he owns. He can't sign to guarantee the part of the property you own.

Therefore only his interest is subject to the guarantee.

Trust this clarifies, please click accept.

Kind regards,

Thomas and 3 other UK Property Law Specialists are ready to help you
Customer: replied 5 years ago.
Ok, I guess I was asking whether or not it was legal. As I thought anything relating to a shared property would require by parties to sign.

I understand what you have said, thank you.

How would it be viewed if we were to divorce?
Expert:  Thomas replied 5 years ago.
Divorce is complicated and settlement depends on many factors, chief among them being who has residence of any minor children.

There is a presumption that each party retains a 50% interest in the matrimonial asset pool (less debts) which would be rebutted depending on factors. You would be arguing that any debt incurred as a result of your husband's actions as to the guarantee should be disregarded from the asset pool. You might get some traction with this, but it would become very sticky.

You would really need specific advice giving your whole financial information for a proper indication of your position.

Customer: replied 5 years ago.
Okie doke, thank you.
Expert:  Thomas replied 5 years ago.
No problem. Good luck Kathryn