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Blair
Starting Member
27 Posts |
 Posted - 07 October 2010 : 17:51:02
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Hi, can anyone answer how long will the OR take rental payments from tenants in our property, if we buy back the BI in home, that may be rented out at the time of bankruptcy (due to split)
Is it just the 12 months we are bankrupt or 3 years like a IPA?
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debtinfo
forum expert
2826 Posts |
Posted - 07 October 2010 : 18:49:38
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| The OR has no obligation to sell the BI back to you on a tenanted property, you dont automatically get it back after 3 years and they can take the rent indefinitly, In reality, because they will not pay the mortgage with the rent then the mortgage company will at some point reposses or may put an LPA receiver in if it is a buy to let mortgage |
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Blair
Starting Member
27 Posts |
Posted - 07 October 2010 : 21:17:36
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Thank you for the quick reply.
It's not a buy to let mortgage as it is/was our home. We're only thinking of this.
When you say: indefinitely, does that mean that the OR can take the rent for years and years or is there some sort of cut off point. That is, if the BI was bought and we could fund the mortgage from somewhere else? |
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debtinfo
forum expert
2826 Posts |
Posted - 07 October 2010 : 21:37:02
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The OR will not want to sell the BI back to you if it is not your family home.
The OR can in theory take the rent forever but in reality at some point the mortgage company will reposses it as they will not be getting paid |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 08 October 2010 : 00:11:50
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Initially it sounded like you had already moved out and were renting the property out, however your second post seems to indicate that you hadn't and were only thinking about it. Also are both of you going bankrupt?
But as debtinfo said, if you're bankrupt and have a tenanted property, the OR will appoint their own agents to take over the management of it, and collect the rent. And as debtinfo further said, as a tenanted property, you would not be able to buy out the BI, the property would not automatically vest back to you after 3 years, and the OR's agents could in theory collect the rent indefinitely, with no cut off point. However, eventually the lenders would repossess the property.
Big Al |
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Blair
Starting Member
27 Posts |
Posted - 08 October 2010 : 07:38:58
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| Thanks Debtinfo, I think ex and I are agreed that it will just go, just exploring options. |
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rental payments to OR how long
