MORTGAGE LAW

Mortgage Law

Mortgage Law

Case

Martin is the owner of a business known as Carlton Enterprises Ltd. The Company has recently run into trouble and the bank informed Martin that they are not willing to allow him to borrow any more money. Martin approached his wife, Anne, and she agreed that the house which is held in joint names by both of them may be used as collateral in order to obtain further funds from the bank. Martin assured his wife that the Company's plight was just a temporary 'blip' and that they would soon get back on track and the loan could be paid back within 12 months. Martin also informed Anne that he required a loan of £30,000. However, when Martin met with the Bank Manager of Aldgate Bank alone he requested a loan amounting to £50,000. The Bank agreed to this as the house was being used as collateral. The Bank agreed to the loan in principle and then informed both Anne and Martin of the terms of the loan.

Analysis

Joint Ownership in the context of residential house is rather easily where more than one individual owns a house together. If the junction ownership of the house engages a mortgage, then the mortgage will be on the cornerstone of 'joint and some liability'. That is, all parties to the mortgage are together and severally liable for repaying the entire mortgage. You can find more data on this issue in our part on the share to purchase joint ownership lawful agreement.

Share to purchase is a kind of junction ownership where an organized lawful affirmation groups out the structure in which the house will be owned. This is the 'share to purchase lawful agreement' which we supply for free and groups out, amidst other things:

the share each individual retains in the house ...