| T O P I C R E V I E W |
| Lee.lr |
Posted - 06 September 2011 : 09:21:38
Hi, i own a buy to let property with an ex-friend who is in court on 20th of this month and will be made bankrupt. The mortgage on the property is £66K and it is worth around £72-74K I think. Can you please advise me what options I have. I understand that the court can request half of the rental income per month. But I am left paying the monthly mortgage which seems totally unfair. Can I ask the courst to put the property on the market, what will it cost me to buy his share and will house be soleley in my name then. Any advice is greatly appreciated |
| 15 L A T E S T R E P L I E S (Newest First) |
| year 2029 |
Posted - 17 July 2012 : 14:32:18
I suppose as the beneficial interest is yours, the only thing they could delay is if you wanted to sell it?
You would still be subject to your clause without their name being removed from the deeds.
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
| Lee.lr |
Posted - 17 July 2012 : 13:56:27
My friend had no choice in the matter as my bid for the beneficial interest exceeded his. I think that he may not sign as I will incur further costs. i just want to know what my options are if he refuses to sign and what rights he has if any with the property as all rentla income etc. is now mine.
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| year 2029 |
Posted - 17 July 2012 : 13:45:52
Hi Lee, as you probably know the TR1 is the property transfer from seller to buyer.
If your friend has agreed everything else, do you think they are just being a bit awkward before finally letting go?
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
| Lee.lr |
Posted - 17 July 2012 : 11:45:55
quote:
Originally posted by debtinfo
Hi Lee, good to see you are making progress and hopefully it will be sorted soon
Can you please advise some more. I now have the beneficial interest, the mortgage lender has agreed transfer of equity to remove ex friends name from the mortgage. My solicitor has now done the TR1, but it seems that my ex friend may not sign it. I have not asked solicitor any questions yet, but what are my options as I can't really afford court action.
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| Lee.lr |
Posted - 30 April 2012 : 08:20:34
quote:
Originally posted by RHB
So how much did the trustees get?
I would rather not say in case ex friend ever reads this but I am very pleased with the amount and it is less than half what they originally wanted. At the end of the day the money that I have paid is still in the equity in the house. If I had bought out ex friend in the future it would have cost me a lot more and so it has worked out really well for me.
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| RHB |
Posted - 29 April 2012 : 09:03:26
So how much did the trustees get? |
| debtinfo |
Posted - 25 April 2012 : 17:45:40
Hi Lee, good to see you are making progress and hopefully it will be sorted soon |
| Lee.lr |
Posted - 25 April 2012 : 15:41:57
[quote]Originally posted by daniel9
How have you got on with this Lee as I'm in a similar situation?
It is still going on. I made a counter offer to trustee and provided them with my calculations. I gave sound reasoning for my valuation of property and etimated expenses over 12 months proving that there would be no profit and so no 1/2 rent due to them. Ex friend stated he would counter this offer and would keep outbidding me. Trustee stated that they do not like bidding wars and they would choose a date for sealed bids to be opened (highest bid wins). My ex friend realised that it would cost him dearly to keep his share of the property so his wife agreed to withdraw from bidding. Trustee then accepted my offer.
I then did a transfer of equity with the motgage provider. If they refused to remove him then this may cause problems trying to sell in later years but luckily they said yes. Mortgage now in my name only. Deed of assignment sent to trustee's solicitor and so I am just awaiting legal paperwork to state beneficial interest is mine. Once received my solicitor will then apply to land reg to have deeds in my name only. Ex friend may need to sign land reg forms but if he refuses I can get a court order and land reg will accept this.
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| daniel9 |
Posted - 25 April 2012 : 14:41:17
How have you got on with this Lee as I'm in a similar situation?
*link removed* |
| debtinfo |
Posted - 11 September 2011 : 10:45:43
basically none of the rights of the property change apart from who has the right to the equity in it |
| Lee.lr |
Posted - 09 September 2011 : 20:30:26
So even if I bought his beneficial interest, he would still be entitled to half the monthly rental income minus the monthly mortgage cost?. Can he then also force the sale of the property. We have a contract that states that the property cannot be sold for atleast another year. If he requests this then he is liable for any costs from his share of equity. Problem is if there is no equity and property sells for less than mortgage owed, I am left with the debt and sale costs. He may do this to cause me problems if I try to buy out his share.
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| debtinfo |
Posted - 09 September 2011 : 18:04:49
if you (or anyone else) buys the beneficial interest it does not change the Legal ownership or who is on the mortgage, it is simply a piece of paper that says you have the right to 100% of the equity should it be sold in the future.
You both have an equal right to make an offer, no one has preference over the other, in reality the OR will often stand back and let the interested parties come to an agreement, i have seen many times that if they cant come to an agreement then the OR may refuse to sell it to either |
| Lee.lr |
Posted - 09 September 2011 : 15:38:02
If I make an offer to the OR to buy the interest, is the property and mortgage then solely in my name or do I get something from them to show land reg that I have the right to put it in my name. I don't want to do it if my ex-friend refuses to sign something to make property mine. Does the ex-friends wife get first choice to buy the interest over me. If there is no equity and I make an offer of say £500-£1000 (is that good or not enough), does the OR then ask my ex friend for a counter offer. I don't want to get into a bidding war and things may turn nasty. If he was not an ex friend then I would not be interested in owning property outright but this is a way to finally cut all ties. I am arranging next week to get his name removed from joint account we hold. He is happy to do this and will sign form without any fuss. Sorry for so many questions.
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| debtinfo |
Posted - 07 September 2011 : 11:20:55
Well he might find that withno equity in it the trustee. may not want to sell the interest, they don't have to and can keep the property forever if they want to, they will also check out the value themselves, if they do decide to sell the interest they will offer to you as well or you can make them an offer off your own back |
| Lee.lr |
Posted - 07 September 2011 : 07:43:16
Thanks for the advice. Ex-friend has employed the services of an insolvency company. They have informed me that they they intend to have the property valued at market value of £65K and so no equity in it. Doing this so ex-friends wife can buy his share. Yes it is a proper buy to let mortgage. Am I able to buy out his share instead of his wife. I do believe that property has equity and this is just a way for them not to lose the property or have to pay anything except maybe £1. Can I offer more
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