Nightmare - please advise

bunnygirl007

Hi
I have just found out about a very small field (agricultural value only) that is registered in both mine and a relatives name. It was in Trust years ago but apparently when that was dissolved (no monetary gain) it was put in our joint names.

If i go BR will i have to declare this and if i don't will they find out? We are not able to sell because of restrictions and it will pass through the family for generations. However I'm scared the impact BR will have on this, my relative will go mad if they find out and i will be totally disowned. I think it is probably worth less than £10,000 and obviously I only have a half share. I was hoping to do all this without involving any of the family.

Can't believe this is probably going to stop me going BR, don't know what I'm going to do now. Thanks in advance for any advice.

fermi

bunnygirl007 wrote: »

If i go BR will i have to declare this and if i don't will they find out? We are not able to sell because of restrictions and it will pass through the family for generations.

You would have to declare it. The OR checks land registry records.

What restrictions on sale?

bunnygirl007

Its got a restricted covenant preventing it being used for anything other than grazing, hence value not very high so not worth selling.

What would happen to it in BR?

I can't believe this, I'm just managing not to cry....I really thought I'd got it all sussed and finally getting the courage to face up to things and sort myself out and now this.

flip-flop-fly

If it is joint names then I would imagine it will be treated like a property in joint names, as it is you going personally BR then when you declare it the OR will be intrested in your half only.

This is called the benficial intrest, so if another family member offers to buy your half at £5k or less from the OR he will accept, this is the easiest solution.

Don't rule out your family, you are not alone there are lots and lots of us in a pickle at the moment you maybe suprised and family may come through for you, hope that sounds okay don't want to offend, good luck

bunnygirl007

Thanks flip flop. I know what you're saying but this particular person defo wouldn't understand or support. They have done very well in life and give me the impression that if you don't do as well its your fault!

Regarding family member buying interest, can it be any family member e.g. could my son buy the interest? How much would he have to offer or is it a set amount?

bunnygirl007

I've just found this on a link in another thread - I keep reading it but my head is so mashed I don't think I'm making sense of it. Is it saying they won't register an interest in it?

50.20 Jointly owned property
No protection is available at this stage of the proceedings in respect of jointly owned property as a bankruptcy notice cannot be registered against such property except as outlined in paragraph 50.26.

50.26 Protection of jointly owned property - official receiver acting as interim receiver
The LR cannot register a bankruptcy notice against jointly owned property. Where the official receiver is acting as interim receiver and becomes aware of registered land owned by the debtor jointly with others he should consider applying for a restriction against the property to protect the creditors’ interest (see Part 7). The official receiver must first make application to the court for leave to apply for a restriction. The procedure necessary to apply for a restriction is explained in paragraph 50.79. The official receiver should withdraw the restriction if he ceases to act as interim receiver.

50.29 - jointly owned property
It is not possible to register a bankruptcy restriction where a property is owned jointly by the bankrupt and others. Reference should be made to paragraph 50.36 and Part 7 for guidance on protecting jointly owned property (see also chapter 33 - The Family Home).

50.35 Jointly owned property - protection
No registration of a bankruptcy notice or a bankruptcy restriction will be made against any jointly owned land in which the bankrupt has an interest, even where all the owners are subject to bankruptcy proceedings. The reason that a bankruptcy restriction cannot be registered is that in such cases the legal title (the only estate which is registerable) is not vested in the bankrupt alone (and consequently does not vest in the trustee of the bankrupt’s estate) but in the joint proprietors and the joint legal estate is not severable. The bankrupt’s beneficial interest is in the proceeds of sale. The Chief Land Registrar is not concerned with the beneficial interest in the property (which is severable).

This is the link:
http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch49-60/Chapter50/part2/part_2.htm#50.38

JCS1

The OR will write to your relative who is a co-owner to inform them of your BR and that your interest now vests in them. I believe there is a different type of restiction placed on jointly owned property, but I would need to check that.


Are you sure of the value? Do you still have the family trust documents? It might be worth seeing a solicitor as if you could argue it was in a family trust and not owned by you then it might not be taken as an asset Not sure on this, but think it's worth checking out.

JCS1

J Restriction filed at Land Registry

iv Why does the official receiver register a Form J restriction?
The Land Registry will not register a bankruptcy restriction against any jointly owned land in which the bankrupt has an interest, even where all the owners are subject to bankruptcy proceedings. To protect his or her interest in a property that is jointly owned, the official receiver (OR) must lodge a Form J restriction at the Land Registry. Prior to 13 October 2003, the official receiver would lodge a caution against dealings at the Land Registry to secure his or her interest in a property. Under the Land Registration Act 2002 (LRA2002) cautions against dealings were abolished and replaced with Form J restrictions.



http://www.insolvency.gov.uk/freedomofinformation/technical/CaseHelpManual/F/FreeholdProperty/FreeholdPropertyJointlyOwned.htm

bunnygirl007

Thanks, looks like I'm stuffed then.

The family trust was dissolved about 5 years ago due to there being no money left in it. The field was then registered in our names despite the fact that when it was in the trust it would not have passed to us until the beneficiary of the trust died.

Guess my only hope now to sort this out is to look at IVA and hope I can manage it.