Confusing, complicated situation, help gratefully received please - New SoA posted

BlueIsTheColour

So is it better to go BR before tax year end or after? That confuses me too, best just add it to the list I think, haha!

Thanks again

debt_doctor

Hi,

To attempt to avoid an NT tax code then go BR as close as poss to the new tax year. This would have to be balanced against creditor pressure/action during any delay.

DD

BlueIsTheColour

debt_doctor wrote: »

Hi,

To attempt to avoid an NT tax code then go BR as close as poss to the new tax year. This would have to be balanced against creditor pressure/action during any delay.

DD

So is it better to not have an NT tax code? This confuses me greatly, my creditors bar one are all very quiet at the moment and accepting my token payments so hopefully I have some time on my hands to save the BR fee itself, and research this 25% developer thing.....

Thanks DD

yellowmonkey

Just like to say good luck with the Smoking. Sorry not finacially related as such but just saw your post on the giving up smoking thread..

ym

BlueIsTheColour

Thanks ym, all the support and friendliness on this forum is fantastic, and now I have the added "bonus" of not wanting to let any MSE'rs down too :-)

BlueIsTheColour

Well once again I have spent a lot of today reading through lots of threads on here, and whilst I now feel I have a little more knowledge I am still no wiser in my own situation, but hey that will come..... Once I am in possession of all the facts...

Having looked around on the net I think the 25% "bit" of the house may well be secured as 2nd charge on the flat, if that is the case, what would happen if I went BR? Would the liability for it fall to my OH, which would force him into BR, which there is no way he would do, sorry for all my questions.

Anyway, here's to a better 2009, wishing you all the very best of everything you wish yourselves :beer:

BlueIsTheColour

Just wondering if anyone had any ideas about my question above?

Sorry for being a pest and thank you

peachyprice

Hi Blue, sorry didn't see this when you posted.

If it's secured it's good news for you as you are definitley in negative equity. As it's secured lending it isn't included in BR as long as you keep the flat, so as long as you stay there it won't make any difference at all, it will just sit there until you want to move, at which time you'll have to make arrangements to pay, or hopefully have enough equity to cover it.

It's only if you decide to give the flat up in BR that it would be a problem, in which case the 25% and any mortgage shortfall would fall to your OH.

HTH

BlueIsTheColour

peachyprice wrote: »

Hi Blue, sorry didn't see this when you posted.

If it's secured it's good news for you as you are definitley in negative equity. As it's secured lending it isn't included in BR as long as you keep the flat, so as long as you stay there it won't make any difference at all, it will just sit there until you want to move, at which time you'll have to make arrangements to pay, or hopefully have enough equity to cover it.

It's only if you decide to give the flat up in BR that it would be a problem, in which case the 25% and any mortgage shortfall would fall to your OH.

HTH

Thanks so much for this Peachy, I have just checked on the land registry website, a worthy £3 spent for peace of mind, and it does indeed confirm there is a 2nd charge on the property in favour of the developer, although no amounts are mentioned, am presuming thats normal, so yes def neg equity, as total amount for mortgage and 2nd charge was £161k, and current market price is about £130k if that.....

So basically I can go BR and it wont be affected, and it wont force my OH into BR? If thats true thats music to my ears.....Dont want to get too carried away but my understanding now would be that I can go BR, it wont affect OH and we get to stay here as long as we can afford to maintain the mortgage obviously?

Thanks so much for taking the time Peachy, your advice and help has been great always, and its really helping :A

BlueIsTheColour

Finally also found a relatively concise explanation of the terms of the stupid offer under which we bought this place..... But good news for me that its secured and we're way in neg equity then.....First bit of good news for a while

2. Barratt Developments Shared Equity Deals
2.1 Offers for you to pay a percentage (e.g. 75 or 85% depending on the deal offered) of your new home initially are based on you paying that percentage of the agreed price at the time of completion.
2.2 The remaining percentage (either. 15 or 25% depending on the deal offered) of the purchase price becomes a second charge on your house in favour of BDW Trading Ltd.
2.3 You can repay the second charge loan at any time within 10 years of completion. This can be done either when you sell or transfer the property to a third party in the future, or at the end of 10 years from the date of legal completion, whichever is sooner. Any valuation will be calculated based on valuations by two independent estate agents appointed by us.
2.4 The second loan must be repaid within 10 years of completion whether the property is sold or not. In the event of genuine hardship at the end of the 10 year period, the repayment period may be extended for up to a maximum of a further 5 years.
2.5 The second charge will be payable on the basis of the price of your property at the time of future sale or transfer as opposed to the original purchase price. This means that whether your property increases or decreases in value, you will only be liable for the same percentage of the value of your home at the time of future sale or transfer (e.g. 15 or 25%) or at the end of the 10 year period from legal completion if you choose not to sell.
2.6 You will not be liable to pay back any money made on the basis of home improvements (e.g. the addition of a conservatory or loft extension) insofar as it may affect the value of your home. The valuations will be based on the value of the home as constructed at the time of purchase, based on reasonable maintenance and wear and tear.
2.7 This offer is not available for plots valued over £250,000.
2.8 This offer is not available to purchasers who will be purchasing on a “buy to let” basis.
2.9 Valuation decisions mage by independent valuers are final.