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marie.189
Starting Member
7 Posts |
 Posted - 02 January 2010 : 18:07:18
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| My husband has accumalated over 50k of debt which was impossible to keep up payments with I had around 8k which i managed However we entered a debt management and due to the lack of work he has failed the payment. My 8k was included in the management plan which in hindsight wish it had not. we have a rented property buy to let and our own mortgage which we have managed to keep up with. I Know that my husband is going to have to declare banktruptcy although i do not wish to go down this route please help if you can Our main home is at present in Negative equity although our by to let may have about 30k what will happen to this??? |
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debtinfo
forum expert
2826 Posts |
Posted - 02 January 2010 : 18:35:35
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The good news is that as long as you can afford the mortgage payments your family home should be protected if it has no equity (there is a small amount of expense involved)
With the buy to let ptoperty, it is likely that if their is that much equity the Trustee will want to sell it to relaease the equity. There are other problems with buy to let properties. Is it a buy to let mortgage or a residebtial mortgage |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 02 January 2010 : 19:48:44
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Hi
Welcome to the forum
It appears that ORs are varying their practice on BTL properties.
Certainly, the market has started to rise so valuations are changing from having once had negative equity to having a positive valuation.
It is worth trying to negotiate with the ORs valuation if it is higher than yours.
We did (my wife is buying the BI on our BTL) and it paid off and the transfer is being dealt with now.
In fact the market has risen quite a lot and you may have to get three or more to show the lowest valuation you can and then pass it to the OR - they will then "split the difference" on valuation. (I hope this is clear). If not come back and I will put my plain English hat on...
It is certainly true that as the markets have now started to rise and that trend is continuing - more consistently now than in the last 18 months - that the scenario that is emerging is what debtinfo describes - depended on the market in your area.
On your family home that is more likely to be saved - if that is the right word - again though, the market forces may come into play and what was thought to be a one time negative equity, becomes a positive valuation - then the BI can still be purchased - £211 for the ORs solicitor and then the value of the "equity".
If it is jointly owned, you only buy half of the "Equity" you do not have to buy the other joint owners half
Good luck and post back with any more points and I feel sure there will be people who will be pleased to try to help you - me included
Regards, Richard
"Life is generally something that happens elsewhere" (Alan Bennett - author and hero of mine!!) |
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marie.189
Starting Member
7 Posts |
Posted - 03 January 2010 : 17:00:46
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quote:
Originally posted by debtinfo
The good news is that as long as you can afford the mortgage payments your family home should be protected if it has no equity (there is a small amount of expense involved)
With the buy to let ptoperty, it is likely that if their is that much equity the Trustee will want to sell it to relaease the equity. There are other problems with buy to let properties. Is it a buy to let mortgage or a residebtial mortgage
Thanks for your input the mortgage on the buy to let. Yes it is a buy to let mortgage does that create more problems??? Just seems like a mine field out there at the moment not sure which way to turn.
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debtinfo
forum expert
2826 Posts |
Posted - 03 January 2010 : 17:04:28
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| No, that is the correct way of doing it. Since the IS reviewed its procedures earlier this year it has become much more difficult to keep buy to let properties. |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 03 January 2010 : 18:31:08
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Hi again Marie,
I wish you well.
As debtinfo has said, it is now more difficult to hold onto BTL properties.
There appears to be a high amount of equity in your BTL - is that your estimate or have you had a valuation done?
Come back if you want to discuss in more detail - a difficult decision and I feel for you as we all put a lot into protecting what we hope is our future and it can easily go wrong for anyone.
regards, Richard
"Life is generally something that happens elsewhere" (Alan Bennett - author and hero of mine!!) |
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My husband has accumalated over 50k of debt
