Buying house off brother in law

steverobson213

Hi all
My brother in law has a house,valued at £85000,on the market for a quick sale at £79000,nobody has even been to view in the last 2 months.He owes £60000 on the mortgage.He is in the process of going bankrupt owing about another £30000.When he sells any proceeds will go to creditors.Is there anything to stop me buying for say £70000 or even less?The intention would be to let him still live there paying rent at what the mortgage would cost.Thanks

david29dpo

I am no expert on these matters but i think deposing of assets to avoid paying the creditors could land him in big trouble.

steverobson213

Yes,I thought that,but £70000 when nobody is interested at £79000?I'm wondering where they would draw the line?

Doozergirl

If he drops the price with the EA then there might be some evidence of the true market value of the property - ie. less than £79,000 even if you buy it for £70,000. You're not exactly going to be far off.

DVardysShadow

steverobson213 wrote: »

Yes,I thought that,but £70000 when nobody is interested at £79000?I'm wondering where they would draw the line?

The key thing would be percentage discount from asking. Here, it is over 10%, so you could argue that the difference is too high for anyone to make an offer at possible true values which trump your 70,000. Maybe the line would be between 5% and 10%.

You may find it is worth reframing the question and posting it on the Bankruptcy boards - take a read there first to find how to present the question, there are knowledgeable people there, but there are also many understandably emotional people, which could get you a flaming if you are perceived to be profitting from your BIL's problems.

CLAPTON

When your BIL goes bankrupt the OR (offical receiver) will review his financial afffairs which will include the sale of the property.

If the OR perceives the flat was sold too cheaply to a relative then he can reverse the sale.

However, its perfectly arguable that if no-one has even looked at 79,000 then the property is over priced.

If you main intention is the help your BIL, then it would probably be better to let him go bankrupt and then offer the OR say 62,000 for the beneifical interest in the property.
The OR won't want the hassle of actually selling it so may well accept a low offer in the current climate. If the OR refuses you can always negotiate. And of course there is no question of your BIL disposing of assets in advance of BR and being given a BRO.

steverobson213

Thanks for your replies.That's something to think about