Posted: January 5th, 2016

George is unable to pay the mortgage instalments to Kwiq Kash. As a result, Kwiq Kash seek possession of the house. Advise Tony.

Two brothers, Tony and George, decide that, in the face of current property prices, they should pool their resources to buy a house together. They find a suitable property, and Tony pays for a surveyor’s report on it. As this is satisfactory, the sale goes ahead. George has enough money that he is able to pay a third of the asking price for the new house as the deposit. He enters into a mortgage agreement with Southern Stone Building Society to borrow the rest. George tells Tony that as he (George) is paying the deposit, the property should be registered in his (George’s) name alone, ‘just to make life easier.’ Tony, who has never been able to afford to buy property before, agrees.
They move in, having a room each, a shared front room and kitchen, and one bathroom. The house needs some work doing to it so Tony, who is a painter and decorator by trade, undertakes to make the necessary repairs and improvements. Tony rebuilds a garden wall, replaces three window frames, installs a new boiler, and decorates all of the rooms. He does this over the course of a year, using free time when he is not at work. Tony pays for all of the materials used out of his own pocket. Tony and George split the bills for power, water, and food equally. If Tony has any spare cash at the end of the month, he hands this over to George saying, ‘this should help out with the Building Society’. George, who is just about able to cover the monthly mortgage repayments, is always relieved to receive this cash from Tony.
A few months later, Tony is employed by a local painting and decorating company, increasing and stabilising his monthly income as a result. Consequently, he begins to pay half of the monthly mortgage repayments to Southern Stone, alongside with George.
Three years after moving in, and without telling Tony or Southern Stone, George takes out a second mortgage on the property, this time with Kwiq Kash Loans. George wants this money to invest in a friend’s business. Kwiq Kash do not know that Tony is also living in the property. Unfortunately, George’s friend disappears with all of the cash that George (and other investors) had given him. Before long, George is unable to pay the mortgage instalments to Kwiq Kash. As a result, Kwiq Kash seek possession of the house.
Advise Tony.