Not the usual question about house!

tannerman007

afternoon, I currently owe 40K on unsecured loans, most of which was down to my ex wife! Im not tottaly innocent.Last year Ii lost my well paid job and was on benefits for six months whilst dealing with a break down. I have met a lovely new lady and have moved in with her, My debts are being delt with by CAP and they suggest banckrupcy. My new job pays rubbish money but its a job.
My first querstion is this, my house which is fully paid for by my father is in my name but has a covant on the deeds to which my sister holds a mortgage for the purchase price of £125K with an anual rate of interest at 6.5%. I have never paid her any of this money, it was my fathers way of securing the house against my wife in a divorce. How very astute of him as now she has !!!!!!ed off leaving me with all the debts in my name ( great love isnt it!) The house is currently rent out. Would The OR make me sell the house even though all the profit from the house would go back to my sister. House now worth 180ish.

THoughts please.

Thanks

tannerman007

Oh and my father wont left me sell the house to pay off debts.

Mouse1812

Well I hope the paperwork is watertight and you get on with your sister.

The OR will investigate how this arrangement arose, my initial questions would be:

Who originally bought the house and how did it end up in your name?
Have you ever paid anything towards the capital cost of the property?
Why has your sister got a mortgage charge over it - what consideration did she give for that?

Was this set up by some form of trust and if so what does the trust deed say?
Who is entitled to the rental income and why?

How come your dad will “not allow” you to sell to pay your debts - how come he has any say in the matter?

The OR has powers to undo any arrangements which place assets out of reach from your creditors. He/She will look to see if you have any beneficial interest in the property a seek to recover it.

If you can shed some light on my question I might be able to comment further, but this does sound like one for a specialist solicitor (but not sure yet which type).