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welshdingo
Starting Member
3 Posts |
 Posted - 26 March 2012 : 17:25:25
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Hi, Was made bankrupt in sept 2010, and had all clear in sept 2011. My wife and i jointly own a few BTL's, when we discussed the bankruptcy before we proceeded we were informed that we could make an offer to the IP's for my wife or another member of the family to buy my interest in the properties.
Further to the bankruptcy we have tried on numerous occasions to get an answer from the ip on this and kept getting fobbed off with 'we'll deal with this later, there more important things to sort first.'
This was until my bankruptcy cleared. Im now being looked after by a private IP on behlaf of the gov insolvency and when i brought this question up he informed me that it is unlikely i will ever have opportunity to purchase properties from them?
Is this true? Surely my wife should not have to pay the full amount of the mortgages and they simply take their half of the income for ever and a day?? Any help would be greatly appreaciated. |
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debtinfo
forum expert
2826 Posts |
Posted - 26 March 2012 : 17:59:03
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| They have no obligation to sell them back to you or her and no time limit to do so, all you can really do is make an offer that they cant refuse |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 27 March 2012 : 12:27:32
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Hi there - From your post I presume only you went bankrupt and the BTL properties are in joint names with your wife?
If this is the case then the OR/Trustee is only concerned with / and can deal with your interest in the properties NOT your wife's. Therefore your wife could, if she so wished 'purchase your interest' in the properties. Unfortunalty as Debtinfo states there is no specific time period for the trustee to deal with this. All I can suggest is that your wife puts her request to 'purchase your interest in the properties' in writing to the Trustee, it would be in her best interest to have some up to date valuations done concerning the properties and up to date mortgage statements to show current outstanding balances. What figure she arrives at to 'offer' to the Trustee will depend on the equity situation of each property.
With regard to the payment of the mortgage your wife is leaglly entitled under the terms of the joint mortgage ot meet the whole payment - I take it that she is collecting all the rent?
Melanie Nicholas CertDR
30 years insolvency experience - 23 of which in the Insolvency Service and the past 8 years with a number of IP firms.
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mydebtpages
Starting Member
43 Posts |
Posted - 27 March 2012 : 14:55:20
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Hi,
Something not right here. I'm sure Melanie is right in that your wife is liable for the mortgage(s) but I can't see how the trustee is entitled to half the rental income, which is what you seem to be saying.
For instance, say there is an 80% mortgage with each 'owner' having a 10% equity share. Then the rental income should be divided 80/10/10 with the 80 percent going to whoever pays the mortgage because that is the share the 'mortgage' owns.
Looked at another way, the trustee should get only 10% because that's their equity share. Unless there is some clear rule on this which someone can refer to I would consider challenging the trustee on this.
Regards
-MyDebtPages
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 27 March 2012 : 15:18:57
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Hi mydebtpages,
If it's a jointly owned rental property and one person declares bankrupty, then the OR will take half the rent leaving the full mortgage payment to be paid by the non bankrupt.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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debtinfo
forum expert
2826 Posts |
Posted - 27 March 2012 : 17:38:29
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Yes as vicki says, the trustee gets 50% of the rental income as this is income from the asset, The rent is not due to the mortgage company it is due to the owner (or in this case the trustee) it is then the Owner (or trustees) decision if they pay the mortgage, of course in most normal circumstances you would because otherwise the property would be repossessed. If there is no equity then the rental income is worth more to the trustee than the house itself so they can choose to keep it.
Are the propertiesin negative equity, If so i would look at what it is worth to the trustee ie so many months x rent income and make that sort of offer
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mydebtpages
Starting Member
43 Posts |
Posted - 28 March 2012 : 14:22:55
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Vicki and debtinfo thanks for your clarification on this.
I remain astounded but it's then very easy to see why the trustee is so reluctant to let your properties go welshdingo - he/she is on a very nice little earner thanks largely to your wife's ability to go on paying the mortgages - fundamentally unfair. It is basically a mechanism for transferring money from your wife to your creditors - if any ever gets that far.
You might want to investigate whether you are under any obligation to maintain tenants in the properties - if your wife can afford a 'void' period and you can cut off the trustee's rental stream they might lose interest in the properties very rapidly, especially if they are in very low or negative equity.
Regards
- MyDebtPages
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 28 March 2012 : 14:38:58
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And I would say hat if you did that you would be deliberately withholding money from the OR and it may not go.down very well.
Plus you could be depriving someone of their home for no.good reason.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
Jan
xxx |
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mydebtpages
Starting Member
43 Posts |
Posted - 28 March 2012 : 15:07:21
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Yes - hence the phrase ' under any obligation '. Make that 'under any legal obligation'. Competent legal advice would be the way to go on that one.
Also I'm not suggesting tenants are thrown out, even though that may be perfectly legal - tenancies come to a natural end sooner or later.
The line must be drawn somewhere - the way the money is split is ridiculous enough - can people really be forced to rent out property just to generate income for the trustee ?
Regards
- MyDebtPages |
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debtinfo
forum expert
2826 Posts |
Posted - 28 March 2012 : 18:34:58
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| As i said the best way is to make an offer the trustte cannot refuse |
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welshdingo
Starting Member
3 Posts |
Posted - 29 March 2012 : 22:24:59
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Thanks for all your feedback.
Just to clarify, i was made bankrupt and my wife fine, apart from paying for my mistakes!
Most if not all properties in low to negative equity.
Some of you suggest making an offer to IP, what sort of formula should i use? most of tenants are long termers, at least 2 year in properties and unlikely to move out as very settled, we were/are good landlords.
Do i offer 3,6,9 or 12 months rent?
Any experiance/advice most welcome.
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debtinfo
forum expert
2826 Posts |
Posted - 30 March 2012 : 05:50:30
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| I would offer 12 months, but with the observation that she is no longer willing to pay the full mortgages otherwise |
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welshdingo
Starting Member
3 Posts |
Posted - 30 March 2012 : 09:37:22
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quote:
Originally posted by debtinfo
I would offer 12 months, but with the observation that she is no longer willing to pay the full mortgages otherwise
Hi Debtinfo, thanks for all your help.
One of the properties is a 3 storey house we turned into 3 flats, to offer them twelve months would equate to over £4.5K.
Thats probably out of our reach but is that what they expect from us? If so will have to beg and borrow from from family.
But I wouldnt be able to do all 3 properties as that would involve over £11K. Would hey allow stage take overs?
Would this rule apply to our family home or would we be better off waiting for the 3 years to be up? I've been led to believe allow not in writing that our home would revert back to us after a three year period? Hope this is true or should i offer them for our home first? It is also at break even/almost neg equity.
Regards
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Topic |
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Unlikely ever to have chance to buy properties back ?
