Financial Error - Buy to Let

[missspendapenny]

Hi everyone

Thank you for reading, and hopefully commenting.

Last year I purchased a buy to let property with my partner, I paid 100% of the deposit (£13250) and we signed up as joint owners on the mortgage and deeds. My partner is a 25% partner in a business that now looks to be in decline, I am concerned as the business has loans c£100,000 that are tied to the directors. If the business goes into recievership will they take capital from the house (i.e. all my life savings?). Is there anything I can do to prevent this happening, has anyone been in a similar situation?

Any help is appreciated.

Thank you

I assume that you and your partner weren't married?
Unless you signed the mortgage as tenants in common (where you would stake a claim into what you put in) then yes, the Receivers may look to secure a charge on the property. Depending on the terms of the Receivership they could take over your partner's share of the house- in reality becoming joint mortgage holders with you. They will give you oppurtunity to "buy them out" which means taking the mortgage on in your sole name.

Your other saving grace may the type of partnership your partner is in busihess in. If It's a LLP (limited liability partnerhsip). This may mean your partner is (as the name suggests) limited to his liability.

Suggest you do a little homework on your partner's Partnership and the deeds to your property to ascertain if you were joint tenants or tennants in common.

Hope that's useful.

I think you need to get legal advice now and see if you can make changes to avoid a charge being placed on your property.