| Author |
 Topic  |
|
|
karen.r
Junior Member
172 Posts |
 Posted - 11 March 2008 : 13:57:41
|
What is the beneficial interest in a property? I am struggling to repay mortgage arrears (threatening repossession) and unsecured debts (which I have an arrangement to pay £1 per month). I live with my partner who knows nothing about this and I have read that my house will not necessarilty be repossessed in bankruptcy if someone buys the beneficial interest but I cannot find anywhere on the internet that explains this simply. My house was valued in Sept 2006 at £245,000 and my mortgage is £214,000 and a secured loan of £15,000.
|
|
|
Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 11 March 2008 : 14:54:37
|
Hi Karen,
Welcome to the forum,
Your benefcial interest is your part of the equity which calculates as follows £245,000 property value.
less £214,000 mortgage less £15,000 loan = £16,000 this would be your benefcial interest.
However a few factors have to be taken into consideration firstly the value of the property if it was valued in 2006 I should imagine the price is a great deal larger than £245,000 in the current market!
Is the property in your sole name?
If yes does your partner contribute towards the payments for the property i.e. mortgage payments utility bills, council tax etc.
I think the first thing you should do is to fid out what your property is worth in the current market place.
Bankruptcy may not be the correct route for you as an alternative may be possible dependent to the answer of the above questions.
I hope this helps
Brett
View my Blogs at:
http://HelpfulAdvice.blogs.bankruptcyhelp.org.uk/
Bankruptcy Specialist
England,Jackman & Spacey
E-mail be@ejands.co.uk
WebSite www.ejands.co.uk
|
 |
|
|
karen.r
Junior Member
172 Posts |
Posted - 11 March 2008 : 15:01:13
|
Thanks for your reply.
Similar properties in area on market for just under £200,000 though mine is a little larger. Property is in my name only but partner does pay towards bills. I have mortgage arrears of £11000 and a suspended repossession order. I have tried secured loans and remortgage but my credit rating is terrible and the more I apply for credit, the worse it gets. I am also tied in until September with my mortgage. I have asked the mortgage company for help, either by payment holiday, lower interest rate, etc, but they are not willing to do anything.
I am at my wits' end, losing sleep and worrying about an eviction notice being issued.
|
|
|
|
Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 11 March 2008 : 16:00:24
|
Hi Karen,
Has anyone valued your property with regard to the secured loans re-mortgages as I think this is an imortant point!
From the sounds of it Bankruptcy does seem like your best course of action, however this will only deal with unsecured debts and will not help with regard to the eviction.
If the property is truly worth £245,000 then with the litte equity you have plus your tie in with your mortgage company, You need to consider walking away from the property and renting this is why the actual value of the property is an important point.
May I enquire as to your joint income into the home and your current mortgage payment?
Kind Regards,
Brett
View my Blogs at:
http://HelpfulAdvice.blogs.bankruptcyhelp.org.uk/
Bankruptcy Specialist
England,Jackman & Spacey
E-mail be@ejands.co.uk
WebSite www.ejands.co.uk
|
|
|
|
Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 11 March 2008 : 16:09:38
|
Hello karen.r
further to what Brett says you mentioned that you are with your current mortgage company until September - It would certainly be important to check to see if your interest rate is due to increase after this time.
You should also clarify the point regarding the mortgage and the arrears of 11k. Is the mortgage of 214k including the arrears of 11k or is that on top.
potentially you could be in a position where you have a house that may be worth less than 245 with a mortgage of 214 + 15 +arrears of 11 with the interest rate due to rise ( and therefore the mortgage payment) in Sepetember.
Have you investigated the cost of rental property in your area? I would strongly suggest that you get a house valuation this week and also see what the rents are as this will give us some clarity in providing Bankruptcy advice
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
|
|
|
karen.r
Junior Member
172 Posts |
Posted - 11 March 2008 : 16:33:12
|
Income is £2300 and mortgage payment is £1307. Mortgage of £214 includes the arrears. I just really wanted to know about beneficial interest in regards to bankruptcy. I don't want to lose my house, I work from home and need the space. Moving to a smaller place isn't practical. I will get a valuation done asap. One was done in 2006 by a surveyor in regard to my remortgage.
|
|
|
|
Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 11 March 2008 : 18:49:21
|
The problem you are faced with is the arrears of £11,000 I think you will struggle to recaptilize these payments as I don't think the mortgage company would allow this to go over more than 12 months therefore giving you a mortgage of £2307 per month, which with your income is not sustainable.
When you know what the correct property value is then come back and I can advice further.
I hope this helps
Brett
View my Blogs at:
http://HelpfulAdvice.blogs.bankruptcyhelp.org.uk/
Bankruptcy Specialist
England,Jackman & Spacey
E-mail be@ejands.co.uk
WebSite www.ejands.co.uk
|
|
|
|
Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 11 March 2008 : 20:49:12
|
Agree with Brett
the arrears will no doubt cause a huge problem, however lets not rush to a judgement until we know what the value of the house is.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
|
|
| |
Topic |
|
What is the beneficial interest in a property?
