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BISHBOSH
Junior Member
United Kingdom
179 Posts |
 Posted - 05 March 2009 : 18:26:15
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| HI ALL getting a valuation on my house tomorrow, and am just hoping it is low enough so as not to leave me to much equity, my question is what would happen if there was to be say £7-10000 equity, i am currently in an iva with debts of £80000, my current mortgage is £111000 so would the or force me to sell my house, I think the going rate for my type of house in this area is about £118000 at the moment. Any advice anyone? |
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Suzanne
Average Member
United Kingdom
869 Posts |
Posted - 06 March 2009 : 09:10:59
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Hi Bishbosh
You would have a period of a year before the OR/Trustee would start repossession as long as you continue to service the secured lending (the secured lenders do not have to wait a year).
If during that time the price dropped further and put you into negative equity then you could buy the beneficial interest for £1 plus £211 costs. If the price rose, and neither you or a third party were able to raise the beneficial interest, then they would probably force a sale.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
www.jonesgiles.co.uk
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 06 March 2009 : 09:11:34
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It all depends on the valuation minus the outstanding mortgage and and early repayment penalty (if on a fixed deal)If a no equity or negative equity situation after that calculation you, your partner if not bankrupt(or a 3rd party) would be offerd to purchase the beneficial interest (£1 plus £211 costs) If there was an equity situation and only you bankrupt but the house in joint names the unbankrupt party (or a 3rd party) would be able to buy your 'share' of the equity. If solely owned again a 3rd party could buy out your share. It is worth arranging for valuations etc as you have done so that you fully aware of the implications/figures before bankruptcy. If you make a decison re BI or equity purchase you can mention this to your OR when you have your telephone meeting as this can speed up the process, although a letter offering solutions such as BI purchase will be sent out to you, but some people worry when the have not heard anything for a few weeks after going bankrupt, so it always good practise to be aware of the situation and mention it to the OR when you chat
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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BISHBOSH
Junior Member
United Kingdom
179 Posts |
Posted - 11 March 2009 : 19:15:52
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| Had my valuation on friday and it came in at £130000!!although for a quick sale accept £125000! leaving me with £15000 equity,as i have said in my original question we are £80000 in debt at the moment with a possible £25000 more debt to be added at some time in the near future due to the repossesion and sale of a BTL property which we owned,If we were to go BR and the OR took control of any assets, ie our home, would he force a sale of our home after 12 months, if he was only going to realise say £15000 from the sale? bearing in mind that we would probably owe around £100000 to our creditors. If he didnt force a sale and we had'nt got anybody to buy the interest in our home what other action could he take? Or to put it another way, would it be worth him taking the house and getting only such a small amount to pay towards such a large sum? any advice would be greatly appreciated |
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John
New Member
United Kingdom
73 Posts |
Posted - 11 March 2009 : 19:26:33
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Hi
if the OR is confident of raising sufficient funds through a forced sale to meet the outstanding secured borrowing plus a minimum £1000 for the benfit of your unsecured creditors he would indeed force a sale.
£15000 is an attractive proposition even if it is only 15% of the outstanding debts. To each and every creditor that's better than nothing at all.
The only way to prevent this action is for you or a 3rd party to buy the interest.
John White
England Jackman & Spacey |
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BISHBOSH
Junior Member
United Kingdom
179 Posts |
Posted - 11 March 2009 : 19:32:08
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| Thanks for that John, does OR always allow 12 months for you to find alternative accomodation or could he force a sale at any time? |
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John
New Member
United Kingdom
73 Posts |
Posted - 11 March 2009 : 19:44:02
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Hi
it's usually 12 months particularly if there are children in the household.
John White
England Jackman & Spacey |
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Topic |
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Valuations & BI
