Negitive equity in bankruptcy

mojoparrot

I forgot INAN the house is leasehold not freehold. No problems with the annual groundrent. Its £25 per year and paid up to date. There are around 75 years left on the lease. I also was sent the deeds when I bought 8 years ago, I dont think they are copies should I declare these deeds?

Thanks once again for your time (and brain)

Mojo

dojoman

Be very careful, no one on here can say exactly what the OR will or will not do. All examiners are different and whilst one may not force the sale of the house for £10000 equity another might.

silvercar

mojoparrot wrote: »

I forgot INAN the house is leasehold not freehold. No problems with the annual groundrent. Its £25 per year and paid up to date. There are around 75 years left on the lease. I also was sent the deeds when I bought 8 years ago, I dont think they are copies should I declare these deeds?

Thanks once again for your time (and brain)

Mojo

Putting aside your bankruptcy, the length of your lease is a serious issue. You need to start thinking about getting it extended. The costs of extending the lease or buying the freehold increase each year once the lease has less than 80 years remaining, you are already in this terrritory and need to take action.

More info here:

http://www.lease-advice.org/publications/documents/document.asp?item=10#8

Ineedaname

Regarding the health evidence, if CCCS have advised that then definitely follow that advice, can't do any harm to provide more information.

mojoparrot

Thanks all again,
I see that this is a big risk Dojo I will certainly think on that. I know this is stupid but what will be the point of no return in the process?
Silver, what do you mean about the lease? I'll either be forced to sell through bankruptcy or dust in 76 years why does this matter to me? Besides I have more outgoings that income theres no chance that I could afford to extend now.

Mojo

Ineedaname

If you were to stay in the property and wanted to sell in the future, the value could be compromised by the reduced years on the lease. Anything less than 80 years is considered a risk and the new buyer would have to take into account the cost of extending the lease when purchasing from you.

However, as you are planning to go BR, it will be up to the mortgage lender to extend the lease (or not) when they take possession. It would be a waste of your money to extend the lease now unless you were going to sell, in which case it would be an investment to gain a better price.

mojoparrot

Yes INAN now I think about it I see why. I really dont want to leave this house its not massive just small, close to family and I hope to leave it in a box 30 years from now!

mojoparrot

Now Im in a panic, but I see Dojo is right this is a massive risk. Yet another blow to my mental health.

Ineedaname

My apologies, I forgot you were intending to give up the house, serve me right for not reading your opening post fully through to check.

As you intend to hang on to the property then you will need to consider the lease at some point, and sooner rather than later. However, going BR puts you in a difficult position on this as you won't have the money to pay for the lease extension.

A local estate agent should be able to give you a bit more information on the subject if you want to start looking into it.

dojoman

mojoparrot wrote: »

Now Im in a panic, but I see Dojo is right this is a massive risk. Yet another blow to my mental health.

Sorry did not mean to panic you in anyway shape or form:o I was just highlighting the possibilities to you.