Possible cross charge from guarantor’s liabilities

[Rollerdisco89]

Hi there I wonder could anyone offer any advice as we are at our wits end. My husband is currently trying to sell a buy to let property that was purchased by him in 2008 with his father acting as guarantor. We are sale agreed on our first family home and due to close in the coming weeks. The BTL property is in positive equity and we planned on using the equity built up towards the purchase of our family home. Our mortgage is managed by an asset servicing company on behalf of a vulture fund, the mortgage was originally taken out with NIB, then transferred to Danske and now with the asset servicing company. It has since transpired that there may be a cross charge on the property due to my husbands father acting as guarantor on the property and having other liabilities to them. The asset service company have stated they may look to use the proceeds of our sale to pay off some of the balance of my fathers loans and this is causing a lot of stress and upset.

Some facts:

- my husbands BTL is in positive equity with no arrears
- my husbands father is not on the deeds
- my husbands fathers BTL properties are in positive equity with no arrears
- my husband has contacted the company everyday over the course of the last 3 weeks trying to seek a mortgage redemption letter to state once the property is sold that the mortgage will be released, each time he is told a different story and conflicting information
- the sale of the property is due to close in the next few weeks and he will have to back out unless the issue is sorted imminently

My question is, has anyone ever heard of a cross charge on properties where the 2nd party only acted as guarantor? Has anyone been in a similar situation and been able to resolve it?

Many thanks

 

[Jim Stafford]

Cross charges and "All Sums Due" mortgages are relatively common when you have multiple mortgages. However, there would be no cross charge on your family home unless you agreed to it.

Obtaining clarification on Redemption amounts is an issue for most of the vulture funds, not just Everyday. What you need to do is instruct your solicitor to "escalate" the matter with Everyday and, provided there is no cross charge, threaten legal proceedings etc if the mortgage is not redeemed.

Jim Stafford