HARD question!!!!

JPS29

Darnit,

I'm in a near identical position.


This just cant be right. Like you say Darnit, if thats the case then whats the point i paying the mortgage?
The OR/RTLU only owns my share of the BI, don't they

debtinfo

Hi, the rent will now be an asset in the bankruptcy, The OR should appoint someone to collect the rent (or half if only one person bankrupt) and this money goes to the bankruptcy estate not to the mortgage. This is done so the that the mortgagor will apoint a LPA Receiver and so take it of the hands of the the Official Receiver (which is what he really wants). The problem occurs where the property that is let out was not bought on a buy to let mortgage. in these cases the Mortgagor cannot appoint an LPA receiver and so as they are not receiving the mortgage (which is going to the OR) then they will repossess, again taking it of the hands of the Official Receiver. It is still possible to buy the beneficial interest of the Official receiver BUT the los cost conveyencing scheme (where the OR's cost just cost £211) will not apply as this was set up so that people do not lose their family homes, not their business assets, meaning that the legal fees will be a lot more. secondly the offer to buy it would have to include any equity plus the value of futures income by it being tenented and so the cost of buying it back would again be dearer

Darnit_2

In our case we both went BR, but I don't understand how they can tell us to stop paying the mortage that we can afford just to have the property sold (which they won't be able to do, as it is in NE and the bank won't agree to a sale below the mortage value). Surely they can't make the bank have it back if both the bank and we want to carry on paying to keep it? Although if I cnat buy back the BI there is little point in us bothering.

Darnit_2

Thanks debtinfo, we overlapped there...

JPS29

Thanks for that Debtinfo.

What about discharged BR's, which I am.

I was told by the OR that my case was transferred to RTLu as they had finished investigations. Surely they cant come back to me now and expect the rent to go to them, and in that case, what about the past 16 months rent, or my half of it. They would be putting me in a worse situation than before by neglecting to inform me of this, surely

Reassuring to know that the BI CAN still be bought though, and fair enough re the low cost solicitor route, I dont want my cake and eat it

debtinfo

Hi darnit, if you are both bankrupt than the the property is effectivly owned by the official receiver and so the rent should be paid to the OR who does not have to pay this to the mortgagor. If the Mortgagor wants to secure the rental income they then have to appoint the LPA receiver who has the power to collect it direct for the mortgage. Think of it like if you had lots of shares which pay out a dividend, when you go bankrupt the money that the asset makes would go to the OR as the OR holds the interest in that asset

Darnit_2

So...the only way to keep it, is to pay the mortgage even without the benefit of the rental income for the period of the BR (which would probably be too hard), and as long as the bank confirm they were aware that it was a BTL (which it is) then after discharge, we could continue to rent and receive income, and buy back the BI at a higher cost?

The way that they get what they want (which is less properties-less hassle) is to force you into default on your mortgage by keeping the rental income. Is that right?

debtinfo

The way i see it, the only way to keep it is this. ask the mortgagor to appoint an LPA receiver as they will not be getting their mortgage payment otherwise. this covers the mortgage who can then make sure that they are being paid. in the meantime make a realistic offer to buy the interest back from the OR which takes into account the rental nature and pay the increased legal fees. once you get it back inform the LPA receiver that you are now in a position to collect the rent and pay the mortgage yourself.

This is going to be expensive and fraught with danger (i didnt say it was a good idea) but it is the only way i can see it working.

JPS29

Sorry to bombard you debtinfo but any advice in my situation.
Discharged, OH not BR, neg equity etc.

thanks in advance

Darnit_2

Thanks Debtinfo, I knew there must be a way of doing it, but I am not so sure it is worth the effort......