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| T O P I C R E V I E W |
| lisa |
Posted - 03 April 2008 : 15:07:43
Hi
We owe approx £117,000 plus our mortage of £175,000 and have no equity in our house. Our preference was for an IVA but a significant part of our debt is with Northern Rock and we do not really meet their criteria for an IVA. We are therefore considering bankruptcy. We understand that a relative can buy the beneficial interest in our home, but we are unsure what this actually means eg who "owns" the property and what happens next? What happens if you eventually want to move house and would we ever get a mortgage again? How does this all work? In the current credit crisis would anybody ever lend to us again?
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| 2 L A T E S T R E P L I E S (Newest First) |
| melanie_giles |
Posted - 04 April 2008 : 01:36:13
Hi Lisa
Who has told you that you do not meet NR's criteria for an IVA? If this was your preferred option, then maybe it is an idea to take a second opinion, as in my experience NR are accepting more and more IVA proposals as the weeks roll on. |
| JulianDonnelly |
Posted - 03 April 2008 : 19:54:47
Hi Lisa,
Welcome to the forum.
On a property that is in negative equity the trustee will look to sell the beneficial interest in the property.
Although the property is in negative equity a transaction still has to take place so it is completed at the nominal sum of £1 plus the legal costs which range from £200 - £250.
You can nominate the person you wish to purchase the beneficial interest from the trustee, although the Bankrupt would still be liable for the mortgage payments. The owner of the beneficial interest would then be the one to benefit from any equity growth from the date of the transfer.
You would get a mortgage again although you will have to declare your Bankruptcy to the mortgage company, due to this you will incur a slightly inflated interest rate due to your credit history.
It would depend on the mortgage products available at the time you applied, but you may need to find a higher deposit, however nobody can tell you what this will be as due to the current problems the mortgage companies are changing their products on a daily basis.
I suggest you contact one of the experts through the expert’s page as they will be able to look at your case and give you chapter and verse on the whole process and what to expect.
All the best
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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