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harry
New Member
56 Posts |
Posted - 21 September 2008 : 19:26:29
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Bankrupt's beneficial Interest in Partner's House: My daughter has been living with her boyfriend for 12 months (they are unmarried). He is about to go bankrupt (due to debts arising from loans for car purchases about which she and we knew nothing). The house is in her sole name, and there is no mortgage on it. It was bought outright as a cash purchase immediately before they moved into it. He made no contribution to the purchase (in fact, it was purchased entirely with funds provided to my daughter by myself and my wife). There have been no improvements, extensions etc, made to the property since they moved in (hence none to the funding of which he made any contribution). All bills are in my daughter's sole name. HOWEVER, he does give her £50 per week (which we think of as 'rent' since if he didn't live there he *would* be living in rented accommodation costing at least as much) towards general household expenses. Since there is no mortgage there is substantial equity in the property (approx. £150,000). (1) Couod the Official Receiver argue that our daughter's boyfriend has a beneficial interest in the property? (2) Could our daughter therefore be forced to sell the house? (3) Could it be counter-argued that WE have a beneficial interest in the property (since, in fact, we paid for it -- not anticipating this situation)? (4) Is it advisable for my duaghter's boyfriend to move into rented accommodation BEFORE he goes bankrupt?
One thing I should add. My daughter's boyfriend does not have a bank account (he has had credit problems before) and so he has arranged that his wage is currently paid into my daughter's account. However, that is NOT his contribution to the household -- the money is taken out by him immediately it appears in her account and he then gives her just the £50 per week 'rent'. |
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tracy_b
Junior Member
United Kingdom
457 Posts |
Posted - 21 September 2008 : 19:31:30
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Hi Harry, Welcome to the site. I dont have any advise for you except to say that one of the experts will answer you shortly. Keep posting and hopefully you'll get your answers soon. Tracy |
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BankruptC
Senior Member
1030 Posts |
Posted - 21 September 2008 : 19:55:09
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Hi harry and welcome from me also!
Unfortunately I don't have the technical knowledge to answer your question either, but I didn't want to 'read and run'.
Hang on in there and someone who can help will come along soon.
Take care.
C. x |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 21 September 2008 : 20:06:27
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Hi Harry and welcome to the forum
as I read it :
The house is a gift from you to your daughter. It is unmortgaged. He has made no contributions to either the purchase or significant contributions towards being there. Your daughter's boyfriend happens to live with her. He makes a VERY MODEST contribution towards some utilities and towards food.
I do not believe that in any civil case there is a position that your daughters boyfriend has any claim whatsoever upon the house, either in insolvency or if theyr were to split up.
I suggest that for ease of explanation your daughter gets an assured shorthold tennancy agreement and gets the boyfriend to sign it.
These can be purchased from WH Smith or drop me an email & I can forward a blank one to you.
It would just make it clear that he is a tenant rather than a prospective long term owner.
hope this helps
Paul Johns Assisted Bankruptcy Specialists Reviva UK www.revivauk.com |
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harry
New Member
56 Posts |
Posted - 21 September 2008 : 21:25:59
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Thanks Paul.
I will email you.
Harry |
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