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| Simi |
Posted - 02 September 2008 : 13:09:34
I have just separated from my husband and we have a large amount of debt. My husband has moved into rented accommodation and is looking at entering into an IVA, it has been recommended that I apply for bankruptcy. My main concern is our property which we own 25% of and rent the remaining part from a housing association. We purchased the 25% in 2001 when the property was valued at £105,000, now it is worth £150,000 and our mortgage in joint names which we are not arrears with has £21,000 outstanding. As there is some equity in the property is it likely that the receiver will enforce the sale of the house even though I am living there with my two sons aged 17 and 14? An IVA is not a solution for me as I have already checked that route and had hoped bankruptcy might be the only solution but I am so worried I am going to loose the roof over our head! I look forward to any advise anyone can give me as I have found it very hard getting answers regarding the shared ownership!
Thanks! |
| 6 L A T E S T R E P L I E S (Newest First) |
| JulianDonnelly |
Posted - 03 September 2008 : 12:34:36
Hi Simi,
If you wait until after you go BR to find a rental, you may well struggle as I've heard in similar cases the landlord/letting agent has asked for 6 months rent up front.
Estate agents valuations are generally in the right ball park, but a surveyors valuation would be best. Just because it's part owned by a housing association doesn't mean it's treated any differently.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
| Simi |
Posted - 03 September 2008 : 12:16:07
Ok - well I think I need to get an idea of the equity I guess as I have no idea! So from what I understand I can remain living at the property for up to one year during which time I assume providing I am paying the mortgage and the rent part I cannot look for somewhere else to live. Before the year is up I will need to find a deposit from somewhere and hopefully find a landlord that would be willing to take me on with my poor credit history!
Also someone told me that as the house is owned 75% by Moat housing it is not valued by a normal estate agent and therefore the valuation of the property could be lower or something? I feel very very confused by it all I have to say!
Simi |
| John |
Posted - 03 September 2008 : 11:05:17
Hi
I'm not sure that a surveyor's valuation would be of much use as there is clearly equity in the property and how much is more or less an irrelevance as far as the OR is concerned.
Lets say a forced sale would produce £120K.
Your interest is £30K of which £21K is outstanding. Therefore there is £9K equity in your share of the property, half of which belongs to you.
If the OR can realise that £4.5K from a forced sale he is duty bound to do so unless you, or a 3rd party, pays the OR the £4.5K for your beneficial interest. Obviously if the forced sale price was higher than £120K then your share would be worth more and therefore cost more to retain.
In the event that this is impossible to do you would be given up to 12 months to find alternative accommodation before the forced sale takes place providing you keep up your mortgage repayments in the meantime.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| JulianDonnelly |
Posted - 03 September 2008 : 11:03:48
Hi Simi,
A proper valuation at this juncture would be a wise move. It is adviseable to know exactly where you stand prior to going BR.
As long as you go for a rental prior to BR, you should be ok with your credit history. A lot of landlords have empty properties at the moment and rents are going down as a result. Most landlords would rather chance someone with aa checkered credit history than leave the property empty.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
| Simi |
Posted - 03 September 2008 : 08:24:14
Thank you, I feel so stressed out and not sure where to turn to to be honest!! The housing association said it would be down to the official receiver to decide whether the property would be sold as there is some equity. They also pointed out to me that I would not be assisted by the council if the house were to be sold! I spoke with the Insolvency helpline number and the guy said the house would definitely be sold. Do you think I should get a proper valuation done on the property or is that something which is done after I am made bankrupt?
Also I wondered if I am forced into selling the house will I find it difficult to rent somewhere due to my credit history?
Thanks!
Simi |
| JulianDonnelly |
Posted - 02 September 2008 : 13:15:55
Hi Simi and welcome to the forum.
Given the current state of the property market at present, it is unlikely that the OR would look at a forced sale. Your beneficial interest in the property will need to be realised for the benefit of your creditors. Perhaps you should talk to the housing association and see what their stance is as it will undoubtedly effect them too.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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