Is it legal for a lender to remove a name from a joint loan without instruction from both people?

see a solicitor or at least citizens advice as you say i'm sure the loan is owned by them both I doubt she had the right to get her name removed.eek I just reread you said she paid half with the money your husband gave her well if it was cash it would look like she's paid her half! not sure how you'll stand now as of course your hubby is responsible for the second half.