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understanding % split on property
alex1977
Posts: 9 Forumite
hi all and good afternoon!
right i need to know im not being dumb here, to cut a very long story im looking at bancruptcy and have a joint property in spain with my brother.
it was bought @ 54,000€
mortgage left @ 45,000€
value???? i would guess 48-50,000€
he paid the deposit/fees and we then split the mortgage 50/50 for the last 4 years until the last 6 months where he has paid 100% of the mortgage as i obviously havnt the money to do so, so i have worked out exactly what we have paid 50/50 his initial outlay and the last 6 months and it comes out at 70% brother and 30% me. is this how the split is calculated? my concern is although over the years we did split it 50/50 it came out of my account, so technically could they say i have paid all the mortgage? i hope not.
also does 'buying out' refer to equity or value? im asuming its equity and if so say there is 5,000€ in equity then my brother has to buy me out of 30% of 5,000€ which equates to £1300.
right i need to know im not being dumb here, to cut a very long story im looking at bancruptcy and have a joint property in spain with my brother.
it was bought @ 54,000€
mortgage left @ 45,000€
value???? i would guess 48-50,000€
he paid the deposit/fees and we then split the mortgage 50/50 for the last 4 years until the last 6 months where he has paid 100% of the mortgage as i obviously havnt the money to do so, so i have worked out exactly what we have paid 50/50 his initial outlay and the last 6 months and it comes out at 70% brother and 30% me. is this how the split is calculated? my concern is although over the years we did split it 50/50 it came out of my account, so technically could they say i have paid all the mortgage? i hope not.
also does 'buying out' refer to equity or value? im asuming its equity and if so say there is 5,000€ in equity then my brother has to buy me out of 30% of 5,000€ which equates to £1300.
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Comments
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what is the property in spain used forHi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.0 -
nothing its just sitting there, it was for an investment/renting but things still need to be finished/fixed so cant be rented yet,
basically my brother sank his shares into it and is holding on to it to hopefully get his money back....me personally could give the keys back today but i didnt throw 7 grand in to start, bit of a catch 22, he's paying the mortgage and neither of us can afford to go out and sort it, also none of the apartments are selling out there..so its just a waiting game at the moment0 -
The problem you may encounter is that as a none family home, the trustee has no obligation to sell the interest back to you or your brother and can tae an indefinte period of time to deal with itHi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.0 -
meaning?...they could keep an eye on it for many years?
when i went in to the court to pick up the forms for bancruptcy i had a chat with the lady at the desk and she said it would be fine to simply transfer it over to him before filing bancruptcy, i explained i thought that would of looked a bit dodgy she said no??
i must make it clear that im trying and want to do this properly and in no way am i trying to hide assets, i was planning on going bancrupt while being still on the mortgage/deeds but after speaking to her im not sure whats best?
the main factor is i dont want my brother to loose out as he coughed up the money to buy it and now he's paying the mortgage so im trying to protect his share, i dont care about myself,
the other thing is the value i personally think its worth less than 50 as next door has his up for 53k for 18 months and hasnt sold it, ours isnt finished so would guess in late 40's but obviously need to get a proper valuation carried out.
so...would they accept a valuation from a local estate agent over there? also have i understood the % split thing correctly?0 -
you have understood the equity split correctly, The OR would seek to recover any asset that you transferred away shortly before a bankruptcy and would not be happy to say the leastHi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.0 -
thats what i thought,
what the lady also said was he could buy out my share and the money would be used to pay for my bancruptcy, which would look favourable...is this true?0 -
what she probably meant that he could buy your share from the OR after the bankruptcy. But as i mentioned before because it is not your family home the OR does not have to do this but they mightHi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.0 -
firstly thankyou debtinfo very much for your time responding to my messages its really appreciated thanks,
so in a nutshell just go in and lay the cards on the table and what they do is what they do...the classic, depends on who i get, what mood they are in etc,
the value of the property to me anyway seems to be a very deciding factor so would you 'go out' and get a valuation? or will they conduct their own?0 -
they may ask you for a valuation, but they will wont a recent one so probably not worth doing it right now as it may take many months for it to be sorted out, the overriding principle for the trustee is to get the best deal for the creditors, So if your brother makes them an offer they cannot refuse then they may sell it to him, but as you say it is dwn to the circumstances at the timeHi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.0 -
hmmmm i can see this being a complicated one! more grey areas than a wet weekend in scotland!
...well the longer it goes on the more the % split will favour him as he's paying the mortgage so hope it doesnt go on for too long,
anyway fingers crossed and thanks for your thoughts
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