My ex is bankrupt and joint mortgage

darreny_2

Hi

I was wondering if you could shed any light on my situation?

I have a joint mortgage with my EX GF, she no longer lives in the house and i pay the whole mortgage. Last month she was declared Bankrupt! I cannot seem to get any answers from the OR regarding the house, the house is currently in negative equity.

What will happen next? Will they put a charge on the house for any future profit? Will she still be a named joint partner on the mortgage or will her name be removed? If her name isnt removed will i still have to get her to sign any documentation in the future if the house is sold?

The OR has "Mentioned" that IF the house is in negative equity i could buy her share for a £1 plus legal fee's is this the case?

Sorry for all the questions but i don't know how long this will all take or what to do with the house and mortgage!!

Thankyou in anticipation

chevalier

i think the buying her out for £1 is called buying the beneficial interest. But I am not sure really of the answer. I am sure there will be others on soon to help you.

You could also post it on the mortgage board or in the bankruptcy forum on this site, as I am sure it is a situation that has come up before.
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fermi

What Will Happen to my Home

Jointly owned properties only: What should be done if someone wants to buy the beneficial interest?

If an insolvency practitioner is handling your bankruptcy, then your husband, wife, partner, relative or friend should contact the insolvency practitioner for information on what to do about buying the beneficial interest.

If the official receiver is handling your bankruptcy, your husband, wife, partner, relative or friend should contact the official receiver. They may be able to take part in a property conveyancing scheme run by The Insolvency Service and a firm of solicitors.

Under this scheme, the beneficial interest can be transferred back to you, or the beneficial interest and legal title can be transferred to your husband, wife, partner, relative or friend.

Please note they will have to pay:

For a solicitor or licensed conveyancer to act for them in the transaction;

• £211 (as at August 2005) to cover the official receiver's legal costs. This amount must be paid in advance. It includes an allowance for expenses that may be incurred in the transaction. If the allowance is not fully used, they will receive a refund;
• the cost of an independent valuation unless you already have a very recent independent valuation of the property;
• the agreed purchase price for the beneficial interest based on the valuation. If your home is now worth less than the amount you still owe on it, the price of the beneficial interest will be set at £1.

They will also have to give the official receiver up-to-date details in writing of the amounts that would be needed to fully pay off the mortgage and any other charges on the property.

If your husband, wife, partner, relative or friend cannot afford the costs of the scheme at present, they may still be able to take part later. They should contact the official receiver about this.

If, later, they approach the official receiver to buy the beneficial interest, and the property has increased in value, the purchase price is likely to be more than £1.

If the home is mortgaged, the lender may have to agree to the sale - the solicitor or licensed conveyancer dealing with the transaction will be able to advise on this.

Hope that helps.