Hi, I went bankrupt on 1st Sept and my husband on 8th Sept. Our own home is in negative equity and so are our 5 buy to let properties. I think our own home will be safe as the negative equity is £130,000 but we are still paying the mortgage. I put all our secured lending on the SOA and the shortfall when the properties are either sold or repossessed on the unsecured page on the SOA. As the buy to let properties are in negative equity will we definately have to sell them or can we keep them if someone buys the beneficial interest in them for a year? Thanks.
The problem with investment properties is that the OR/Trustee has no time limit to deal with these. effectively, they can put a charge over them and sit on them forever so you'll be unlikely to see any equity. Hoever, it does depend on the level of the negative equity as to what the OR/Trustee will do. If a private sector trustee is appointed, you can pretty much be certain they'll just sit on them for years until the equity growth is enough to force you to either remortgage or sell (either way, they'll take all the equity).
Julian Donnelly Spokesperson for www.Bankruptcyhelp.org.uk Don't forget the helpline on 0800 078 9367
multiple properties
Posted - 11 September 2008 : 14:16:01
