Jumping Ship - cant see anyway out

lauren_help

Please can you tell me what happens to a charging order if I go bankrupt and my mum buys my beneficial interest. My flats in negative equity

maxmycardagain

the CO (if at full status, not interim) remains charged on the property

lauren_help

would that still apply if my name was taken off the title deed?

So_Sad_Angel

maxmycardagain wrote: »

the CO (if at full status, not interim) remains charged on the property

Curious to know but if a 3rd party buys interest in property then how can the CO be enforceable against the property??......esp as any mortgage holder does not essentially need to be on the title deed provided the mortage lender agrees.

I guess though the CO company would not allow a principle owner to be removed from the title deeds once the CO is in place.

I`m off to look at this further!

sieve

lauren_help wrote: »

would that still apply if my name was taken off the title deed?

Your name remains on the title deed - no change in title occurs at all in the case of a transfer of the beneficial interest, so the charging order would still apply.

It's only when the property is sold at a profit that BI becomes important as whoever has that can take all the profits from the sale (after secured creditors are paid off).

lauren_help

sorry - just to clarify - if I am in negative equity I am better off letting my flat go leaving the mortgage company out of pocket as well.

These charges started off unsecured - does that make any difference?

What if i added my mum to the mortgage and she then bought me out before going bankrupt?

sieve

If you are in -ve equity and you let the flat go, the secured debts and charges will become unsecured and included in your bankruptcy.

Bear in mind that the charging order would probably still be payable by you if your mum took on your mortgage, as theoretically the security still exists.

I don't know how much -ve equity you are in, nor how much the CO is for, but if you post figures here, we will be able to help suggest more appropriate courses of action. If you are not emotionally attached to the flat (you need to be objective in these situations) and if moving into rented wouldn't be too much of a problem, I would let it go.