My wife bought a property in London six years ago with her colleague/friend. My wife and her c/f are joint owners as per the mortgage and land registry.
But my wife's c/f never paid even a single penny or invested a single penny towards the mortgage or improvements and any bills. She basically helped my wife by providing her employment details to show the affordability of the mortgage. My wife paid all deposit, every month mortgage went from my wife's bank account. My wife's c/f never stayed in the property with us.
My wife's c/f got her council flat and she lived their and she paid her rent. Everything went on well, they haven't made any agreements till date. Suddenly one day the council found my wife's c/f name on the land registry and asked her explanation. She (c/f) said the truth. My wife sent a letter of truth declaration to the council through her C/f saying that "my colleague/friend just came forward to help me to buy a property (due to affordability) but she does not have any share or ownership interest of the property however her name is in the mortgage and land registry. She had never contributed any money towards the deposit or mortgage or repair works of the property. She also confirms this". However the council did not listen to this but evicted my wife's c/f. Now she has rented a private flat.
The real problem starts here: now my wife's c/f went through the lawyers and asking a huge compensation. Also she is demanding my wife to sell the property and release the equity.
If my wife's c/f goes to the court would my wife need to pay a huge compensation?
Is my wife's c/f really a co owner of this property?
Please any suggestions to come out of this situation?. Our children and we are in very stressful situation. Thank You.