If your property is in negative equity and you wish to keep the property, following the bankruptcy you will receive a letter offering the purchase of the 'Beneficial Interest' for £1 plus £211 costs (this offer is to the non bankrupt party or if both of you go bankrupt a 3rd party) For background info in its basic form = when you go bankrupt the OR (Official Receiver) is listed on the deeds at the Land Registry automatically. This prevents the property being disposed of without the OR being aware (as he now has to sign to allow sale/transfer to proceed) If a property has no equity, the OR will issue a letter asking you or a 3rd party to 'purchase the beneficial interest' for £1 as above, or in lay mans terms 'remove the OR's name from the deeds' if this is your preferred course of action it is important you keep your mortgage payments etc up to date.
Hope this clarifies everything for you , if you wish to have further info please feel free to post any queries or concerns and I and my fellow posters will help you
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles
No, all the 3rd party is doing is paying the money to remove the OR's name - the house remains yours, and the obligation to pay the mortgage remains yours.
Hope this helps clarify the situation for you, Melanie
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles
if property is in negative equity
Posted - 26 February 2009 : 17:06:37
