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wordseye
Starting Member
4 Posts |
 Posted - 23 December 2008 : 00:27:25
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| I'm potentially looking at bankruptcy in a few months. I have one major asset which is my home. The equity (i.e. current market value excess over mortgage)in the property is about £20k, although this may decrease a little in coming months as prices continue to fall. In order to keep my home, I think I may be able to sell the equity to a member of my family. Is this correct, and am I legally able to do this without the official receiver challenging it once I have declared myself bankrupt? Are there any legal pitfalls I need to look out for and do I have to sell the equity at full market value? Thank you. |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 23 December 2008 : 09:05:04
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Hi Wordseye and welcome to the forum.
I would suggest getting a proper surveyors valuation before you do anything else. In addition, if you get a balance (including early redemption charges) from your mortgage provider, you may well find yourself already in negative equity. If this is the case, then you can walk into bankruptcy and the OR will sell your beneficial interest to a 3rd party (who you can nominate) for £1 + costs (circa £211).
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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wordseye
Starting Member
4 Posts |
Posted - 23 December 2008 : 10:48:09
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Thanks for the reply Julian. If after a professional valuation and taking any early redemption costs into account, I still end up with say £5000 in equity, should I take any action myself from a legal point of view in selling the equity, or would I be better off leaving the process to the OR, if as you say, I can nominate a 3rd party to buy it?
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John
New Member
United Kingdom
73 Posts |
Posted - 23 December 2008 : 13:42:47
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Hi
all I would say is to sell your beneficial interest to a 3rd party pre bankruptcy is not simple as lenders get nervous and you cannot do so without the lenders ok.
When it is done following bankruptcy and instigated by the OR the lender knows he has little choice.
It is also likely that the process will be less costly doing so via the OR therefore post bankruptcy.
The only downside to that is it can take a while for the OR to get around to dealing with your beneficial interest post bankruptcy and even when you have nominated a 3rd party to purchase the BI, and that 3rd party has made their interest known to the OR, it can be an anxious wait for it all to happen.
But if you have a recent valuation, a recent redemption statement, a nominated buyer of the BI and the funds to do so - it will happen.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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wordseye
Starting Member
4 Posts |
Posted - 23 December 2008 : 17:20:05
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Thanks for the reply John. All info much appreciated.
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I'm potentially looking at bankruptcy
