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leen.ow
Starting Member
31 Posts |
 Posted - 20 February 2010 : 16:25:47
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I asked a question on friday about how the OR would deal with me living in my girlfriends house and contributing to the mortgage...I received one reply from a member saying that I may be pursued for BI, even though she is the sole owner of the house and the deposit will be borrowed and owed, by her, to a family member (she hasn't bought the place yet). The issue I suppose is that technically, there will be equity...the house will be 75k, and she is borrowing 15k for the deposit, and has a certificate in priciple from Nationwide for 60k, so the 15k would be immediate equity, even though she will owe it to her gran.
What is the best way to play it? I told my partner, who has thus far been very supportive of my BR plans, about this BI issue last night which resulted in a bit of an argument and she is feeling understandably reluctant to proceed with the purchase if the OR can lay claim on 7.5k of the money SHE is borrowing from her gran!
Please help as we are both stressing out now about this!
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debtinfo
forum expert
2826 Posts |
Posted - 20 February 2010 : 16:56:43
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| why don't you ask the OR, simplest way to find out |
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leen.ow
Starting Member
31 Posts |
Posted - 20 February 2010 : 17:23:18
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I have been told in a past thread that the OR will not discuss hypothetical situations with pre-BR people, and it's a case of wait and see
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debtinfo
forum expert
2826 Posts |
Posted - 20 February 2010 : 18:34:13
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| ah, sorry, i thought you were already bankrupt |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 20 February 2010 : 19:21:30
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Hi Leeon
I do not know categorically the answer to your question but my interpretation is
are you married to new partner, is you name on the mortgage application and will your name be on deeds to property.
I do not know but is it appropriate to write something similar to a prenuptual, stating where the deposit came from.
your partner buying a property in her name should have nothing to do with the Or and your BR, you buying a property or applying for a mortgage has every thing to do with the OR.
are you renting a room or co sharing the house ?
Sorry not answered your question but i would contact one of the experts with a direct email to make certain that you do not get her property involved with your situation.
regards Richard |
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leen.ow
Starting Member
31 Posts |
Posted - 20 February 2010 : 20:13:24
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Thanks Richard. No we are not married, my name is not on the mortgage application, and my name will not be on the deeds. I will simply be living with her and paying my share of the mortgage and bills.
It may be that I try and mask it by telling the OR I am simply her lodger and not mentioning that we are a couple, or even have her draw up a tenancy agreement. As we aren't married (we are engaged, but we don't plan on getting married until I am discharged and have finished paying my IPA) and have different surnames there is no way the OR can prove we are in a relationship...we are not financially associated in any way, I was in my predicament long before she came on the scene.
I remember reading Skippy's blog and she said that she contributed to her partners' mortgage, so I am hopeful, but I have been given doubt by the reply of Chester2005 on my post 'Fiancee's house'.
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 21 February 2010 : 10:10:29
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Hi Leen How
Just seen this post, if your partner is the sole owner of the property then it will be up to the OR to prove beneficial interest in the property NOT you to prove otherwise. From what you said this will not it seems be possible,due to the gifted deposit and the mortgage in her name, even if the OR/Trustee argues you are contributing to the mortgage your argument in return is if you were renting another home from a private landlord who had a mortgage himself you would not be earning any beneficial interest in the property, so is the same with your partner. |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 21 February 2010 : 13:41:46
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sorry if i have given you doubt, but i gave the "official line" if you are in a relationship with someone and contributing to the mortgage then yo are earning a BI.
if you chose to not tell the OR of your relationship or that you were renting from someone who you weren't in a relationship with then it would be a different matter.
However i feel i should point out that when BR you sign to say you will cooperate with the OR and not withhold info etc.
I don't think anyone on this forum myself included should advise anyone how to defraud the OR (and noone has in this case) i know I just try and answer questions honestly to the best of my knowledge
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman)
RevivaUK and Paul Johns helped me through it all i can't recommend them enough!! |
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leen.ow
Starting Member
31 Posts |
Posted - 22 February 2010 : 15:11:37
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I don't want to defraud the OR, I just think it would be really unfair for my partner to suffer because of my irresponsibility in the past. Maybe, although not condoned, I should just tell the OR I am lodging\renting a room in a friends house. And on my SOA just put down one figure for all rent, bills etc. rather than breaking it down into seperate things. My bank statements will reflect this anyway because everything will be paid from her account and I will simply have a standing order to her account every month.
Thanks guys for your replies so far.
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leen.ow
Starting Member
31 Posts |
Posted - 24 February 2010 : 17:33:37
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Just been thinking about Richard P's point about a prenuptual....has anyone got any knowledge of this a
or experience of it?
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 24 February 2010 : 22:20:09
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I can't help you about a prenuptial but I just wanted to share my experience about BI.
When I went BR I lived with my partner in a flat that he bought with a deposit from his mum, with the mortgage in his name. I was supposed to pay him 'rent' and also contribute towards the bills, which I couldn't do due to my debts. Once I went BR I had the money spare and started paying.
We then moved whilst I was BR, and again the mortgage was in his name and the equity from the flat went into the new property along with another contribution from his mum. I'm still paying him 'rent' and half the bills and the OR never mentioned BI.
As far as I'm concerned I have no BI in the property as at no point have I contributed to the purchase of the property, and the 'rent' that I pay is a hell of a lot cheaper than paying a private landlord, which was going to be my argument if necessary!
I hope you can work this out x
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.
31 IPA payments made, 5 to go - the end is in sight! |
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leen.ow
Starting Member
31 Posts |
Posted - 25 February 2010 : 07:51:33
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Thanks Skippy, that's put my mind at rest somewhat. What did you put on your SOA regarding your living situation? Did you have your partner draw up a tenancy agreement? I guess if there's some kind of audit trail as to where the deposit came from we should be ok.
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Jane.l
Average Member
511 Posts |
Posted - 25 February 2010 : 08:04:11
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| I don't think pre-nuptial agreements are legal in England but I could be wrong on that |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 25 February 2010 : 11:12:00
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We haven't got a tenancy agreement or anything like that, and I dread to think what would have happened if the OR had wanted proof of the deposit from his mum - there was nothing dodgy about it, but if she knew I was bankrupt I doubt she would have spoken to me again!
On my SOA I listed my half of the bills and my rent.
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.
31 IPA payments made, 5 to go - the end is in sight! |
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Living situation - expert help appreciated!!!
