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Abandon Ship
Starting Member
2 Posts |
 Posted - 07 May 2009 : 21:45:27
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Hi, Property Question.
Nine years ago when I was young free and single my parents put their early retirement lumpsum into a property with me. I took out a small mortgage of £15000 for my share of the property.
The idea was that they lived abroad half the year, and lived the other half in the UK in the property with me.
Shortly after doing this I bought a house with my now wife and so I only lived at the property for 6 months. I continued with the mortgage because my parents still lived in the property for half the year and they put up the lions share of its worth, and my wife and I ahd good jobs & could afford both mortgages.
6 months ago, I was struggling to pay my own mortgage as I'd started a new business with my wife (following our redundancies), so they bought me out of the property I had with them by paying off my small mortgage.
My wife and I have now lost our business and our house is going through repossession proceedings. Because of substantial other debts we can no longer make payments for, we are both currently completing bankruptcy forms.
I am desperately worried that my parents buying me out of the other property 6 months ago will be construed that I have disposed of an asset and therefore my parents will lose their home in the UK and conseqently their early retirement lumpsum invested in this property - all because my wife and I have got ourselves into terrible debt! Will this be the case - they can easily prove the amount they originally put into the property. Despite the way it sounds they are not rolling in it, and are pensioners. I don't think they would ever speak to me again.
Could anyone please advise? |
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RHB
Senior Member
1159 Posts |
Posted - 08 May 2009 : 07:31:44
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| If they paid you back at full value for your share then there shouldn't be an issue. |
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Suzanne
Average Member
United Kingdom
869 Posts |
Posted - 08 May 2009 : 10:02:22
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Hi
The only issue I can see is that this may have been a transaction at undervalue. If they only paid back the amount of the mortgage and your share of the property was worth more then this would be the case. The OR deals with this by looking to rectify the undervalue. They will get a valuation of the property at the time of the transfer, and work out what your share would be, deduct the amount you parent paid off the mortgage and look to get the balance from them. If they are able to raise this money, then it would not result in the losing the house. However, if they are unable to raise the money the OR can look to overturning the transaction and go for possession and sale.
If you need any further help in understanding this please contact.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
www.jonesgiles.co.uk
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Hi, Property Question.
