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| hammy0107 |
Posted - 27 May 2008 : 17:19:53
Hi all,
More equity advice please.
The value of my house is £148000 (valued through a reputable surveyor), my mortgage is £135000 however the early redemption penalty and administration fees bring this to £142800. On face value this shows equity of £5200 but will the OR take the early redemption penalty etc into account? The reason i say this is that if the OR has 3 years to claim your assets wouldn't they be better off waiting 3 years when the early redemption penalty would be far less, therefore giving more equity? By my workings the property has £5200 equity now but if the OR was to wait then this would probably become £9 or £10k. On the other hand would they prefer to get a smaller equity now and close their file?
Thoughts and / or opinions please. |
| 9 L A T E S T R E P L I E S (Newest First) |
| JulianDonnelly |
Posted - 28 May 2008 : 15:34:30
Hi Hammy,
Regrettably, there are no cast-iron certainties when dealing with property in BR. However, with such as small amount of equity in a falling housing market, it is fair to say that with 99% probability the OR will not go for a forced sale as that is likely to increase your debt (which they can't do).
I would re-iterate to the OR about redemption fees, cost of sale etc and perhaps offer them a "nuisance" payment to bring the matter to a close. Remember, the court is the law, not the OR. However, it is in everyone's interest to bring this matter to a speedy resolution, so negotiate and back up any claims of affordability etc with bank statements if necessary.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| hammy0107 |
Posted - 28 May 2008 : 15:02:57
Julian,
Forgive my ignorance but what do you mean by ' stick to your guns'? Do you mean not offer to buy the BI and hope that in 3 years the OR hands it back to me, or go with my original plan which was to argue the equity and my wifes right to BI and offer a reasonable yet small amount to purchase the BI (£2 - £3k)?
Although the first option leaves us better off financially, the thought of the OR being in control of our home for 3 years would drive my wife mad, she is already insistant we will lose the house. To save my wife the stress i would rather us lose a few grand now.
My wife is reading your responses with me and i am desperately trying to convince her that we will not lose the house. Could you please answer honestly, is there any way that we could lose the house based upon the information i have already given? |
| JulianDonnelly |
Posted - 28 May 2008 : 12:26:42
Hi Hammy,
With only £13k equity, you won't be able to secure any borrowing as you already have a high loan-to-value ratio. Also, with the property market the way it is, any forced sale would likely be an auction where the typical value realised is on average 75% of the market value. clearly, it is not in the interest of the OR to force a sale here. I would try and stick to your guns, but I'm sure the OR will give your wife every opportunity to buy your beneficial interest and that's the only way they'd see any return in your case.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| hammy0107 |
Posted - 28 May 2008 : 12:20:48
Julian, thanks again,
The valuation is up to date (last week).
In the worst instance and the OR tells me i have £13k equity and my wife does not have a BI, what will happen to my house? Will my wife be given first option on buying my BI and if so how long would she usually get to raise this money? |
| JulianDonnelly |
Posted - 28 May 2008 : 11:28:42
Hi Hammy,
to be honest, it's a hard one to call. Given the nature of the property market at the moment, there is every chance an up tp date valuation may come in lower anyway. You are doing the right thing as your wife will have a matrimonial interest in the property, and the more evidence you can produce in this respect will only increase her equitable interest being recognised.
Regards.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| hammy0107 |
Posted - 28 May 2008 : 09:31:43
Julian,
Thank you for responding.
The house is solely in my name, we are however getting old bank statements from my wife to try and show contributions made by her to the household.
If as you suggest the OR will work on the higher figure then obviously this figure will not be feasible (sp) until the early redemption penalty period is complete. Does this mean that my wife would have this extended period of time to find the money to buy the BI? Would it not be in the interest of my creditors and the OR to accept a reasonable offer from her now rather than wait 3 years? |
| JulianDonnelly |
Posted - 28 May 2008 : 08:59:47
Hi Hammy,
Unfortunately in this instance the likelihood is the OR will deal with the higher figure.
They would set this as the figure for the purchase of your BI.
They could wait up to three years, but if no one has come forward to purchase your BI then they would need to take steps to realize your interest.
Is the property solely in your name?
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| m and v |
Posted - 27 May 2008 : 22:32:03
Don't blame you hammy!
Sorry I can't advise you - one of the BR experts should be online soon!
Vicki x |
| hammy0107 |
Posted - 27 May 2008 : 22:14:14
Sorry, just had to put this post back up the screen again as i could really do with some advice on this. |
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