Charge on house

itydntk

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aproblemshared

The property is solely owned by the ex hubby has a charge in % of the value of the property. And therefore OR has charge over his charge of house

itydntk

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itydntk

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aproblemshared

How long does OR have to realise that charge though is it still 12 years or is it 3? He and his ex had a mortgage free house when they divorced so he got a charge on the house because kids were still at school. Now his ex wife has offered to buy him out of his % early for whatever reason and we just want to know what happens now?????? Does OR get all the money from the sale or only a fixed amount? Would that be why he has not been reassessed for IPA as OR is going to get money from house?

itydntk

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fermi

Property in BR is really not my thing, so this could be wrong........

Assuming that the husband has a charge due to the divorcee proceedings and the now wholly owned (by his ex) family home, then immediately on the making of the bankruptcy order the OR/trustee would apply to have the benefit of such a charge with the land registry assigned to them.

So at that point that OR has not sought their own 'charge'.

If it comes up to the 2 year 3 month/3 year point without that interest in the charge being realised, then the OR/trustee would have to think about applying for their own charge or for the 3 year period to be extended. Otherwise the bankrupt's interest in the charge would re-vest with them at the 3 year point.

That ^^^^ is my understanding anyway. Which as said, could be less than perfect.

So I might guess that if the BR was 2009, then no action has yet been taken to prevent the re-vesting of the interest/charge with the bankrupt at the 3 year point?

itydntk

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fermi

http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter33/Annex/annex_2.htm#3

Section 21 paragraph (f) onwards.....?

f) Circumstances where the bankrupt holds an interest in qualifying property in the form of a charge

Where a bankrupt as a result of a divorce settlement (or similar), is awarded an interest in the form of a charge against a qualifying property (which may represent a percentage interest in the equity), even if restrictions imposed by the divorce settlement mean the equitable interest is not readily realizable, failure to deal with that interest before the expiry of the 3 year time period as detailed at paragraph 3 will cause the interest to re-vest. Examples of the type of restrictions which may be imposed by the settlement are where the crystallization of the interest only arises upon the execution of specified events, such as the co-habitation of a former spouse/civil partner with a new partner, or the death of a former spouse/civil partner. The official receiver should ask for the benefit of the charge to be registered in his/her name as soon as he/she becomes aware of it.

The potential value of the equitable interest can be calculated as if it were realizable at the current date, to assist in deciding the appropriate course of action to follow under the procedure as detailed at paragraph 4. If it is not possible to deal with the interest as detailed at paragraph 4, at the 2 year 3 month point the matter should be reviewed.

aproblemshared

My husband does not jointly own the property, it is in his ex wides sole name now and has been for 13 years he has a legal charge of 30% by court order on the property that his wife must pay him off to the tune of when his youngest child leaves full time education. The charge has a value obviously because the house was mortgage free when they divorced 13 years ago so it was declared to the OR when he went bankrupt. The OR applied for a further legal charge on his 30% which we have documentation for. The documents advise that the OR has an interest in the property which means it cannot be sold without the OR's knowledge. Thus cannot be disposed of without him being informed. The OR registered his interest in the property with land registry in January 2009.