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Steve65
Starting Member
34 Posts |
 Posted - 18 January 2010 : 20:21:39
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I understand that the OR can take 50% of the rent received for a buy to let property I co-own with me ex, even if the actual property has no or very little equity after costs and the deed of trust that my ex has to safeguard her £50k deposit. If this is the case, would this automatically result in an IPA regardless of any income I may earn myself?
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debtinfo
forum expert
2826 Posts |
Posted - 18 January 2010 : 22:28:05
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| The money is paid direct to the OR's agent and is not part of the IPA calculation as it is not your income as such |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 18 January 2010 : 22:33:13
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steve
rental properties vary from OR to OR,
In general they will take your share of rental income, this may or may not form part of an IPA depends on value of property and if the OR sees it as an asset to the estate.
The OR may decide to sell your share of the property or the BI within the property, then the income is not yours .
not very helpful i am affraid, hope that someone can shed greater light
regards Richard |
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Steve65
Starting Member
34 Posts |
Posted - 19 January 2010 : 16:34:17
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Thanks guys for the info. My ex is not going to be happy if she loses half the rent. Can she buy the BI on a buy to let property? I thought it was only if it was her main residency.
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 19 January 2010 : 17:25:23
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I'm pretty sure that Housing's wife is buying the BI in a buy to let, so hopefully he'll pick up on this and be able to advise you.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
30 IPA payments made, 6 to go - the end is in sight! |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 19 January 2010 : 17:39:21
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Hi,
Skippy is right - Sue, my wife is buying the BI in respect of a jointly owned BTL.
She has to pay a few thousand as the property has a positive valuation. No rental income to the OR. I believe we have been there at the right time.
Sue has also bought the Bi in our principal home.
If you need more detailed assistance to your post, come back and I am sure betwwen us, we will see a way forward for you 
Good luck, Richard
"Life is generally something that happens elsewhere" (Alan Bennett - author and hero of mine!!) |
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Steve65
Starting Member
34 Posts |
Posted - 19 January 2010 : 20:25:51
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That's good news then. I've already put on the form that the property is a buy to let.
Do I take it that your name had to come off your BTL mortgage, Richard? The reason I ask, is that the current lender isn't lending at the moment and is refusing to take my name off and says she'd have to remortgage. The problem is that the equity isn't enough to remortgage on a buy to let deal and so she couldn't even if she wanted to. Could the OR insist that the lender removes my name?
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 19 January 2010 : 20:58:43
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Hell again,
At the moment, my 50 BI vests with the OR.
Sue is buying this share from the OR - she had to pay for their solicitors fee (£211.00 - TFT in Bristol)
As the property has a positive valuation Sue is having to pay the 50% of real equity as agreed between us to the OR - that then goes on a pro rata to my creditors, via the OR (I believe)
It may simply assist with the costs to the OR from my BR - he will now have had three slices of cake from my BR:
The balance on the proceeds of the sale by a valuer/auctioneer who sold it by tender, then the valuers fee and then the £1,995 for my "new car" - not ure how much that will be - the loser in all this is the car finance co (Black Horse)
He also had £510 in cash on the day of my BR as I had cash on me so her took 50%! All I had was a receipt - I thought I had better be honest and took out my wallet and retained the balance as agreed with the BR
He has also had the positive bal of the BI on the BTL. On our residential property that we occupy, Sue had bought the BI for £1.00 and she is about to complete on that soon. The valuation at that time was good for her - prices for valuation have now increased.
Come back as necessary, Richard
Hope this assists, Richard
"Life is generally something that happens elsewhere" (Alan Bennett - author and hero of mine!!) |
Edited by - Housing on 19 January 2010 21:01:18 |
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Steve65
Starting Member
34 Posts |
Posted - 20 January 2010 : 09:26:13
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Ok, I guess I will have to wait and see what the OR wants. Thanks very much.
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 20 January 2010 : 10:44:05
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Steve,
I wish you well - post back if you have questions.
I am sure that someone on the forum will be able to advise and /or share experiences.
Richard
"Life is generally something that happens elsewhere" (Alan Bennett - author and hero of mine!!) |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 20 January 2010 : 11:04:19
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Sadly (and slightly annoyingly) all ORs work differently so like a lot of these things , it is a case of wait and see how flexible the OR you get, is going to be .
Best of luck with it
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
RevivaUK helped me through it all i can't recommend them enough!! |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 20 January 2010 : 11:36:45
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Hi again,
Dave (Chester) is right, there does seem to be wide ranges of response from different ORs offices.
As and when things crop up that you need to share, post back as I am positive with the wealth of experience on the forum, someone will be able to make a suggestion and or give advice.
Good luck, Richard
"Life is generally something that happens elsewhere" (Alan Bennett - author and hero of mine!!) |
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Topic |
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Rental income
