Must I sell my property to pay an old mortgage shortfall?

Q I own a shared-ownership property and have, with a co-owner, a 50% share in the leasehold. I am now, after 11 years, being pursued by Bradford & Bingley for a mortgage shortfall (after repossession) on a property I purchased in the early 90s.

I paid £200 to a solicitor in Huntingdon to represent me but I have been very disappointed with the level of service supplied. They advised me that I should immediately pay Bradford & Bingley £13,000 rather than the £26,000 they are claiming, but they didn't appear to examine the history of my case.

I would like to know what my and the other co-owner's legal position is. Bradford & Bingley is seeking to make us realise the increased value in the 50% share in our property and its increase in value in order to realise this old debt liability (which I dispute). Can anyone advise me about the validity (and legal enforceability) of the claim? Can they make us give up tenure of this shared-ownership property to satisfy the debt?

RB

A Without knowing all the ins and outs of your case, I can't say for certain what your legal position is. But what I do know is that, if Bradford & Bingley failed to get in touch with you within six years of the date of the sale of the property that was repossessed, you can't now be asked to pay the shortfall. And that has been the case since February 2000 when lenders agreed to abide by a voluntary (now compulsory) code to that effect.

To put it another way: if the repossessed property was sold more than six years ago and this genuinely is the first time that the lender has made contact, you can't be made to pay up. But you may be liable for the shortfall debt - which will have arisen if the sale proceeds were insufficient to cover the mortgage and the lender's other costs - if Bradford & Bingley can show that it has attempted to contact you within the time limit.

But whatever your situation I strongly recommend that you phone the free advice line provided by the government-sponsored Community Legal Service (0845 345 4345), which is able to give legal advice on both debt and housing issues. Even if the person you speak to isn't able to give you detailed advice, he or she will be able to point you in the direction of a professional adviser vetted by the Community Legal Service and able to use the CLS quality mark. For information, this does not include the organisation you dealt with.