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evin
Junior Member
170 Posts |
 Posted - 22 April 2008 : 22:29:10
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Hi We went bankcrupt in december nd was told there was no interest in th property. now we are being told there is around £9,000 equity if we sold the house and took away estate agent fees and extra we would have to pay on the morgarge ther would be nowhere this amount. yet we have been told by the ip £9,000 would be accepted we have not been asked to sell but we may as well i think not sure what to do.
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 22 April 2008 : 23:16:58
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Hi there evin and welcome to the forum.
This may be the first request from the IP regarding any potential equity position.
First steps are to get 2 estate agents to value the property ( NOT for what they would advertise it for but for what they really expect to realise within 90 days). Then look at your outstanding mortgage ( do not include early redemption figures / legal costs or estate agent fees) . This will give you a realistic view of the potential equity.
If the house was professionally valued by a chartered surveyor ( they will charge you money for this) they will almost certainly value the property "for mortgage purposes" at lower than the estate agents. This figue would be acceptable by the OR.
Do you haver a friend or famoly member able to purchase the beneficial interets in the property?
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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melanie_giles
Senior Member
1191 Posts |
Posted - 22 April 2008 : 23:20:48
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Who originally told you there was no equity in the property? And do bear in mind that notional estate agents and solicitors fees will rarely be taken into account as part of the equity calculation.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 23 April 2008 : 08:29:55
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Hi Evin,
As Paul has mentioned in my personal opinion I would pay for a Chartered Surveyor as the valuation will give a more realistic valuation than that of an estate agent.
You will need to obtain your current mortgage redemption figure from your current mortgage company.
If there is an early repayment penalty then list this separately. Your trustee has three years in which to deal with this asset so if your early repayment penalty exceeds this three year period then you can include this.
I disagree with the fact that estate agent and solicitors fees will not be taken into account as if the house was to be sold then these would have to come from the available equity.
I hope this helps.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
Edited by - Helpful Advice on 23 April 2008 08:32:00 |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 23 April 2008 : 08:47:18
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From experience it seems that if the official receiver is the trustee then they don't account for the selling costs ( beneficial interest / estste agent fees / legals ) and value the BI as the equity.
However from experience when the property goes to a trustee ( usually an external Insolvency Practitioner ) they are much more realsitic and clearly cannot realise all the equity because of the early redemption figure and if the property was sold at auction etc then clearly sales costs and legals would come into play.
This is where working on a good relationship with the OR is important because they are more likely to work with you as a speedier agreement usually benefits everyone.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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melanie_giles
Senior Member
1191 Posts |
Posted - 23 April 2008 : 08:52:30
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Brett
There is no legal provision for the Official Receiver to allow notional costs of sale to be taken into account if the property is not to be sold - unless they are applying for a Charging Order over the property for a monetary sum.
Also early repayment penalties are not taken into account, if a transfer of the beneficial interest is to be made back to the bankrupt.
I accept that the OR's examiners may exercise some discretion in their settlement, but I just wanted to confirm to the poster their actual legal position. Perhaps this is an instance where firms like yours can step in to negotiate on behalf of the bankrupt.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 23 April 2008 : 11:07:43
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Hi Melanie,
I see your point with the property being transferred back to the Bankrupt, but in most cases we see it is advised to be sold to the non-Bankrupt spouse or third party.
I think the beneficial interest is always a negotiable issue for an amicable solution for the creditors and the non Bankrupt spouse as it is my feeling that they are the person most effected when a spouse declares Bankruptcy (except the creditors of course) but the creditors do have the trustee working for them.
In our negotiations we always negotiate and represent the non Bankrupt spouse, and I appreciate your comments regarding the legal positions and agree it is the key instance in Bankruptcy for the use of a firm to negotiate the position with regard to a beneficial interest scenario within a property.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
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not sure what to do.
