My daughter has a 25% ownership of a flat (pays rent on the rest). The mortgage for this is not on the flat but on my home. What happens to this if she becomes bankrupt?
Hi Gothicg and a very warm welcome to you to the forum.
Whilst i cant really answer your question as im not too sure, one of the other experts will be along soon who can help you.
In the meantime keep posting and remember your not alone. :-)
Jo x
"There is light at the end of the tunnel, if you cant find it get a brighter torch" You can read my updated Needafriend's New Life- A Debt Free One! blog here: http://debtfreejo.blogs.bankruptcyhelp.org.uk/
I would say that as she owned 25% of the flat and it has no secured charge against it, the OR would expect to receive the full 25% of the value. Was there any sort of legal agreement drawn up regarding the secured loan on your property or did you raise the money on your property to lend to her to buy her flat?
I would say that as she owned 25% of the flat and it has no secured charge against it, the OR would expect to receive the full 25% of the value. Was there any sort of legal agreement drawn up regarding the secured loan on your property or did you raise the money on your property to lend to her to buy her flat?
Thank you. I have remortgaged my property to help her buy this share in the flat. Ownership is limited to those already residing in Ealing so the flat had to be in her name. There is no legal agreement between us. She is struggling to pay loans and CC in addition to the rent and mortgage.
quote:Originally posted by Suzanne
Hi gothicg
I would say that as she owned 25% of the flat and it has no secured charge against it, the OR would expect to receive the full 25% of the value. Was there any sort of legal agreement drawn up regarding the secured loan on your property or did you raise the money on your property to lend to her to buy her flat?
Effectively you are an unsecured creditor as you loaned this money to her. In bankruptcy the OR would claim the equity in the property amounting to the 25% ownership she has. The only way to protect yourself is to obtain a charging order for the amount you are owed on her property, but this should be done sooner rather than later as if done after a bankruptcy petition/order it is invalid.
What happens if daughter becomes bankrupt?
Posted - 09 September 2008 : 10:15:41
