| Author |
 Topic  |
|
|
Louise
Junior Member
United Kingdom
177 Posts |
 Posted - 09 August 2008 : 10:34:30
|
Hi
Wondered if you could give me some advice! I went BR last September and have no IP payments to pay back. The house is owned by me and my husband but obviously the courts own my half now. We brought for 153.000 and I have it valued this morning at 150.000 (its quite a good time to get a realistic valuation!) we owe 147.000 on our mortgage. So there is in principle 3 grand in the house. However, our mortgage is with Northern Rock who have an early redemption penalty to paying off mortgages early which is 4360.00 I need to offer my BR practioner what exactly for my husband to buy back my half of the house? If the BR had my half it would be in negative equity wouldn't it with the early redemption clause? I want to write a letter to make an offer but not sure what to offer can anyone help thanks so much x |
|
|
John
New Member
United Kingdom
73 Posts |
Posted - 09 August 2008 : 10:48:32
|
Hi Louise & welcome to the forum
I would get your husband to write a letter to the trustee. In it he should quote your name and bankruptcy number and explain he is your husband.
Enclose a copy of the recent valuation and list, as a reminder, the outstanding mortgage and redemption figures.
The letter should then state that your husband would like to buy back your beneficial interest.
If the trustee agrees, with the figures as they stand, he is likely to be able to buy it back for £1 plus fees of £211.
The only reasons I can see for the trustee to delay is twofold. Firstly, your redemption penalty will most probably be finished before the 3 year deadline the trustee has to deal with your property. Secondly the trustee may feel the property value may increase within the same timeframe.
It's certainly worth the price of a stamp.
Good Luck
www.Bankruptcyhelp.org.uk
0800 078 9367 |
Edited by - John on 09 August 2008 10:49:28 |
 |
|
|
Louise
Junior Member
United Kingdom
177 Posts |
Posted - 09 August 2008 : 10:51:37
|
Hi
thanks so much! We have a fixed five year mortgage that we took out in july 2006 so it would expire in 2011 so would that help with the three year thing? also would the BR look as the current credit crunch figures and how long the property market would take to recover, am I still do you think to get discharged on the 11th september as I will have been BR for a year even if the house thing is still outstanding? |
|
|
|
John
New Member
United Kingdom
73 Posts |
Posted - 09 August 2008 : 10:59:46
|
Hi Loise
in no particular order (I must stop watching BB in the small hours!!!)
You will still be discharged 9/11.
Yes they should consider the market and you're right, it's most unlikely that it will recover in time to benefit them in respect of your property value. The 5 year fixed rate won't impact on the decision but the expiry date of your redemption penalty might. You've had the mortgage 2 years now, how long before the penalty expires?
www.Bankruptcyhelp.org.uk
0800 078 9367 |
|
|
|
Ian Richards
Junior Member
United Kingdom
296 Posts |
Posted - 09 August 2008 : 11:12:26
|
Hi Louise
I totally agree with John but you need to do this asap as it will give you peace of mind and get it out of the way. As its such a small amount that we are talking about here i feel the OR/trustee will not favour it dragging on and want to get it resolved it as much as you do.
Let us know how you do!
Ian
If you are in need of any further help or assistance, please contact me regarding my services via email. |
|
|
|
Louise
Junior Member
United Kingdom
177 Posts |
Posted - 09 August 2008 : 11:58:40
|
HI
John its before 1st June 2011 if we pay it back early we are then liable to pay a 3% charge. So I guess that I could go in with the £1 and the 211 legal costs? To be honest what i am hoping is that with the current property crisis that they will accept this! as we have little equity in the house - a year ago when we had it valued it was 160.000 but now its gone 10 grand and I am sure it will go down again next year |
|
|
|
John
New Member
United Kingdom
73 Posts |
Posted - 09 August 2008 : 12:26:27
|
Hi Louise
that's good news. The penalty period is unusually long (normally 2 or 3 years) but in cases such as yours the extended period eats up some equity which if course is to your benefit.
I'm sure your right that the value will continue to drop and the trustee will be aware of that. To be honest I'm surprised that your husband has not been made the offer of £1 + fees before now so the trustee can close the file but sometimes, with the workload they have, these things can get overlooked. Fingers crossed your husbands letter triggers the result you're looking for, I think there's a very good chance it will.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
|
|
|
Louise
Junior Member
United Kingdom
177 Posts |
Posted - 09 August 2008 : 13:00:59
|
Thanks for the advice! When I last spoke to the OR they thought the house was worth 160k but due to the low property prices 6 months later its now only valued at 150 so its worked out quite well for us to have waited this long - will send the letter and let you know how I get on! is there any special language that I should in the letter, it seems cheeky writing and saying my husband wants to buy back the house for just a pound plus legal costs!
thanks for replying by the way really do appreciate your help |
|
|
|
John
New Member
United Kingdom
73 Posts |
Posted - 09 August 2008 : 13:12:27
|
Hi Louise
I would just write that he would like to purchase the BI and see what happens.I wouldn't suggest a figure let the trustee decide on that.
If he comes back and says yes but it's more than the £1 + fees let us know before responding.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
|
|
|
Louise
Junior Member
United Kingdom
177 Posts |
Posted - 09 August 2008 : 13:26:17
|
| cool so husband writes a letter saying I wish to purchase the BI in the house, please find attached our latest valuation report, the original amount we brought the house for 153.000, and the outstanding mortgage is 147.000 and attach our mortgage bill, along with the details about the early redemption penalty clause and see what he says? |
|
|
|
John
New Member
United Kingdom
73 Posts |
|
|
vacs
Junior Member
234 Posts |
Posted - 10 August 2008 : 14:17:12
|
| I thought if you applied to buy the BI back when you firt apply for BR in court that you would just automatically get it, am I wrong to think this. |
|
|
|
John
New Member
United Kingdom
73 Posts |
Posted - 10 August 2008 : 14:33:40
|
Hi vacs
if you did so at the time of going BR then you would expect the non bankrupt spouse to get first refusal but the question is when.
A written reminder to the OR from the non bankrupt doesn't hurt.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
|
|
| |
Topic |
|
Buying back the house
