My husband and i have a joint mortgage and i have about £30k unsecured debt in my name. I do not work as i have no childcare and we are not going to be doing an iva, therefore my only option is to go BR :( .....Please can someone let me know the implications of this with the mortgage.
Would i be able to take my name off the mortgage ?
Or could he buy the BI (think thats what its called) to protect the house?
Im not sure so any advice would be greatly appreciated
Hi if there is no equity in the property your husband will be able to buy your BI for £1 plus £211 approx in legal fees.
If there is equity the OR would be delighted for your husband to buy your BI, whatever the value. It's a good idea to have a valuation carried out prior to BR as you may be surprised how low the market has fallen recently, which is good for you with BR looming and if you do not want to move house.
Ask the surveyor to provide a report based on a 60 to 90 day sale as this will bring the figure down a little which again will aid your cause as the less equity the better.
Hi it looks as though you are already in negative equity due to the redemption penalty and looking at the figures you have quoted I'm sure a 60 to 90 day sale based valuation would throw you even further into negative equity.
From the point of view of only you declaring bankruptcy that's great news.
In that case your husband could buy your BI from the OR for around £212 and become the sole owner. Therefore your bankruptcy would relieve you of your debt without compromising your property or your husband.
in the first instance you can ask an estate agent to come round and give you a 90 day valuation for free. this at least will give you an idea of how the land lies.
If the values are touch & go you may want to consider a formal valuation from an RICS chartered surveyor. This costs money and is used for mortgage valuations. it would invariably come in at under the estate agents value.
Paul Johns Assisted Bankruptcy Specialists Reviva UK www.revivauk.com
The official reveiver doesn't usually take redemption penalties into consideration. However should things go to an external trustee then they often do , and one can negotiale with them
Paul Johns Assisted Bankruptcy Specialists Reviva UK www.revivauk.com
Newbie considering BR :(
Posted - 19 September 2008 : 16:34:55
