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gary.pt
Starting Member
1 Posts |
 Posted - 05 December 2009 : 16:54:26
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| I am considering bankruptcy but I have a buy to let mortgage on a property with a tenant in there long term. What would happen with the propery if I went bankrupt ? I am worried that the tenant would have to leave and dont want that cause ahe is elderly and has been there for a while and has no intention of moving. Any advice ? |
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debtinfo
forum expert
2826 Posts |
Posted - 05 December 2009 : 16:58:10
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| It is likley but not certain that she may have to leave the property at some point, probably soe months down the line, this is a complicated subject and it is unlikely that a definative answer can be given |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 05 December 2009 : 18:25:33
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Hopefully one of the experts will be along to advise on this.
The glimmer gets brighter all the time
Jan
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 05 December 2009 : 20:03:01
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Hi gary.pt,
As debtinfo has said, a complex area and even with 30 years of landlord and tenant experience, I am struggling to give you a simple and definitive answer. (I am not often stumped, I have to say).
I am BR and my wife is not. Our BTL is border line negative equity and my wife has submitted a valuation, a mortgage statement and submitted to the ORs office to buy the Beneficial Interest (BI).
They are processing the application at the moment - have not said she cannot and aplogised for the delay at the ORs office.
I do know some who have done that - equally, the OR could (particularly if there is equity) bring about a sale of the property.
Your tenant will be an assured shorthold tenant and have no rights over and above two months notice from you (or the OR -I suspect). That then requires a court hearing and a warrant of execution, (eviction warrant that means) to obtain vacant possession of the property.
All of that would take several months (probably at least 4/5). I accept fully what you have said about causing the tenant (who is elderly) problems.
In a worst case scenario, s/he will have some protection with regards to being re-housed - if s/he is over retirement age. There are 5 priority need categories in housing law. The council is likely to have a duty to assist with his or her (potential) plight.
I can only say what could happen if you needed (for whatever reason) to get vacant possession of the property.
I am not knowledgeable as to what powers the OR has - it is an area of housing law that I am afraid I am not familiar with. I am sure one of the insolvency experts will come onto answer that aspect for you.
At this stage, I think you need to seek financial advice (if you have not already done so) and there are experts on this forum that are likely to be able to guide you. For example, BR may NOT be the best route - there may be a better solution and with a more detailed awareness of where you are would lead to that form of advice.
I am happy to try to assist/guide you if I can on the practicalities for you (and your tenant), but, as I say, you need the aide of the insolvency experts too.
I wish you and yours well and I will follow any threads. Regards, Richard
"There are no problems - only solutions..." |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 06 December 2009 : 17:56:17
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HI all
me just posing a question along this line but not knowing answer
If A third party was to buy the beneficial interest at fair market value.. no ducking and diving but a fully transparent sale. would this create a solution ?
My thoughts about answer
The OR has then stated that they have no interest in the property, The third party and building society own the buy to let, gary's obligation to the tenant has been fullfilled. is Gary and 3rd party allowed to have an arrangement to buy back the BI at a much later time ?
except for your obligations (moral and legal) what is the requirement for the property, it is in neg equity, is it providing a positive cash flow and will it continue to do so if the interest rate starts to creep up
The problem , i again see is the time frame, The OR will want the full rent as income and will not pay out the mortgage, Gary will fall in arrears with mortgage, the mortgage company will then start legal proceedings..
Gary are you currently in arrears with the mortgage on this property ?
This is not a proposition are you married ? Is your partner able to be the third party ?
no i m still going around in circles here, i think that their should be a solution but each time i type options i forsee further problems
good luck Gary, I am sure that others will be able to add other ideas, nice to see you thinking of your tenant
regards Richard |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 06 December 2009 : 18:00:02
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sorry forgot to add
I also agree with housing speak to one of the experts. BR is not always the only option.
give Mel or Paul an email outlining your full circumstances they may have some ideas to help you
regards Richard |
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