On the SOA it asks whether you have sold a property below its value. In January we sold our house to a rent back firm for cash, we had 4 serperate valuations and they were all approx the same value. With the cash we paid off the mortgage and were going to set up a small business, however due to illness this, never materialised and we used the cash to service our debts, now we are in the situation of declaring ourselves BR. I am worried that the OR will think we have done something underhand but we have not, and we can prove where the money went on servicing our existing debt. Will the OR look on this as a bad thing?
If you had 4 valuations and there were all similar then there shouldn't be a problem especially as you used the money for legitimate purposes i.e. paying off the mortgage and setting up a business. If you used this money to reduce your debt with other creditors when the starting the new business didn't take place then I can't see a problem.
House Sale
Posted - 13 October 2009 : 15:55:54
