Secured business loan on house without my knowledge.

[dusdo]

hi - my wife's company recently went into liquidation.

although separated for many years i helped her regarding the total costs of the procedure.

however on monday she dropped a bombshell by stating that the liquidator had contacted her regarding a £15k secured loan she had taken against her half of our house & that the bank was taking immediate legal proceedings to recover unless the amount was settled forthwith - obviously the matter had been outstanding for some time.

anyway i paid the £15k but have to say i was peeved at my wife for not advising me of the matter.

so my question is was it legal for the bank to provide a secured loan on a property 50% joint owned without the approval of the other party?

the property has no mortgage.

 

[billmccallum1957]

Given the long history of banks shafting their own customers, do you think they would be too concerned about taking security on any property.

But in the banks defence, if someone puts up security, then its they you should be upset with not the bank.

 

[Ian J]

Au contraire. I can't see how the bank can take security over a house without the express agreement of both parties if it in joint names.

 

[Gavin Bates]

Hi

Do you know when the security was taken? If it was a long time ago I could see how this could happen. However, in recent times you should have been told what was happening and normally given the opportunity to take you own legal advice and consent.

Gavin

 

[Lisa Thomas]

Are you sure it was a joint charge? Usually charges like this come off one side of the owners equity, but not the other.

Did you get a solicitor to assist you with this?

Ensure you now have £15k worth of interest more than your wife in respect of this payment.

 

[UKSBD]

Is it a house or your home?

 

[dusdo]

But in the banks defence, if someone puts up security, then its they you should be upset with not the bank.

thanks for your reply but i respectfully think you should read my post again.

 

[ethical PR]

You didn't need to pay off the 15K. If she wasn't able to repay them, they would have just put a charge on your wife's half of the property. Then this would have been deducted from what she was owed when it was sold.

Yes it was legal for the bank to do this. And yes your wife should have told you that she had done this.

 

[Lisa Thomas]

EPR - I presume the problem was the threat of repossession by the chargeholder - someone had to pay them to prevent repo. proceedings...

 

[Newchodge]

It may be none of our business, but if you have been separated for many years is it not time to move on and separate everything?

 

[dusdo]

It may be none of our business, but if you have been separated for many years is it not time to move on and separate everything?

ideally yes, but sometimes for various (private) reasons it's not that simple

 

[dusdo]

EPR - I presume the problem was the threat of repossession by the chargeholder - someone had to pay them to prevent repo. proceedings...

LT - i assume that was the case although i have not spoken to her about it since nor can i get any 3rd party info regarding - i just feel gutted that she put the house at risk without confiding in me - a major row at this stage would solve nothing so i'm just giving the matter a wide berth.

btw we are (were) on excellent terms although separated

 

[dusdo]

the opinion appears to be that a loan can be solely secured on 50/50 ownership of a property without any notification given whatsoever to the other party.

does the same apply if it's a 45/55 split that is the person applying for the loan has 45% equity?

 

[Ian J]

the opinion appears to be that a loan can be solely secured on 50/50 ownership of a property without any notification given whatsoever to the other party.

Where did you get this information from as my understanding is that all parties named on the deeds must sign their agreement

 

[ethical PR]

Hi @Ianj my comment was based on a friend who recently went through this process.

They had their property in joint names but the ex partner lived in another property. They had a guarantee with the bank for a business loan. When they couldn't pay it, the bank went to court and got a charge against their property.

The court papers and bank correspondence went through to the property and my friend had to sign the paperwork from the bank regarding the charge.

I don't believe her ex was asked to sign anything.

If someone is living in the property (particularly if they have children) the bank would be incredibly unlikely to repossess. The house wasn't likely to be at risk, it's just the bank would have put a charge against the property in her name and would have been deducted from her share when the property was sold.

OP - I do hope you get something drawn up in writing through a lawyer so that your wife repays this amount to you.