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J.F
Junior Member
United Kingdom
171 Posts |
 Posted - 02 April 2008 : 16:05:26
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When a bankrupt who sells his beneficial interest in their house to his wife via his Trustee in Bankruptcy, what will be recorded with the Land Registry?
John Farrell |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 02 April 2008 : 17:57:16
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Hi John,
It will show that the beneficial interest in the property is the wife’s, although the Bankrupts name will still appear on the registry as a joint owner.
All the best
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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melanie_giles
Senior Member
1191 Posts |
Posted - 02 April 2008 : 22:16:02
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It rather depends upon whether there is a formal transfer of title or not. Most transactions of this sort are done informally between husband and wife, in which case both parties remain legal owners, and if their is a mortgage, both parties remain parties liable for that lending.
Sometimes there is a proper legal transfer of ownership, in which case this will be amended at HM Land Registry.
If this relates to you specically, John, do make sure that you and your wife take legal advice as to the drawing up of a legal agreement with regard to the acquisition of interest - to protect your wife in the event of a second bankruptcy (which I sincerely hope does not occur in the future!) |
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J.F
Junior Member
United Kingdom
171 Posts |
Posted - 03 April 2008 : 09:17:32
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Thanks Julian and Melanie your information is of interest. This case is not mine personally. I usually deal with Inland Revenue Tax Investigations and Bankruptcy.
However, I have been asked to help in this situation as both the solicitor and mortgage arranger seem to be having problems.
My clients have applied for a re-mortgage on their property which has been approved by the new lender. Both names are still responsible for payment of the existing mortgage. It is confirmed to me that the Trustee in Bankruptcy has no financial interest in their property as the bankrupts wife bought this via the Trustee. However, the solicitor dealing with the re-mortgage seems to think that he cannot go ahead with this case until whatever lodgements at the Land Registry have been removed. I know that the bankruptcy lodgement cannot be removed. What other lodgements are likely to be showing.
John Farrell
John Farrell |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 03 April 2008 : 19:33:45
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Hi John,
Without seeing a copy of the land reg searches I am assuming, but it sounds as if the trustee in Bankruptcy would have put a restriction over the property and this is what will be showing at land reg, you will need to get the trustee's permission for this to be removed in writing then your clients solicitor should be able to remove the restriction.
All the best
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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beneficial interest
