using IPs agents for joint name house sale

woodformoretrees

Hi,

I'm just after getting an idea of the pros and cons of using the IPs agents when it comes to the family house being sold, following bankruptcy.

My husband obviously needs to protect his share of the equity - and the IP will obviously be trying to get as much for my creditors as possible.

Will the IPs agents communicate with my husband about his interests in the property - or it is a bad idea to let the IP take charge of the sale?

thank you

debt_doctor

Hi,


I presume it is a jointly owned property and that only you are BR, so IP to realise 50% of your share in the interest (profit) in the property.
Anything that prolongs the process will cost you as the IP's fees will miraculously rack up - you should regularly ask where their current fees / costs lie. The IP has influence over the sale price which affects the overall equity divided by 2
So if you feel that using their agent will hasten the sale, then you may wish to use them.


DD

woodformoretrees

Thanks DD - can I just clarify re the fees. Is that their sale fees, or my bankruptcy and all associated fees?
Also - will their agents communicate with my husband with regards the sale as our own agents would?
Really appreciate your reply on this.

debt_doctor

It is the fees for 'administering the estate' which includes selling the house. Generally the costs are

OR's fee £1715.00
Secretary of State fees - variable - but certainly at least the next £3500 will go to them.
IP fees- legalised crooks who think of a fee and treble it - I have seen IP fees for what amounted to little more than house conveyencing at £15k up to £55k.


Why not ask the agent if the will keep your husband informed, should you instruct them. Either way, and whoever you use, your husband will have no control over how much the IP feels is a fair price, which will reduce the equity for all.


DD

woodformoretrees

Thank you. Seems so unfair for someone to have to pay my costs out of their share of a property.
I'll make sure I get the information off of them.

debt_doctor

Good luck.


DD

debt_doctor

woodformoretrees wrote: »

Seems so unfair for someone to have to pay my costs out of their share of a property.

....and misleading from me, my apologies.

The influence on husbands share is by the IP generally looking for a quick-ish sale (if it covers his fees) which would reduce the overall equity in the property - the IP COSTS will be taken from your equity.


DD

woodformoretrees

Ohmygod DD!! You owe me a box of tissues and very nearly a razor blade.
I've never gone from being so miserable to so happy in three posts!!!!!
Phew.

debt_doctor

I cannot imagine where my brain was.


Sorry.


DD

Tinks74

The Secretary of State (SOS) fee (chargeable where the insolvency order was made on or after 31 March 2005) are variable but on a scale as follows:

Orders made after 6 April 2010:

0% charge on the first £2,000 (this is becuse the first £2000 in receipts has to be allocated against the OR's fees of £1715) so in essence it is still taken in fees just not by the Secretary of State or the IP)
100% charge on the next £1,700
75% charge on the next £1,500
15% charge on the next £396,000
1% charge on the balance
The total fee paid is capped at £80,000

Just as an example if the sale realises £100,000 the Secretary of State fees for doing even less work than the IP are £17,045.
That is taken before the IP can even think of drawing any fees and is totally non negotiable.

woodformoretrees

Tinks74 wrote: »

The Secretary of State (SOS) fee (chargeable where the insolvency order was made on or after 31 March 2005) are variable but on a scale as follows:

Orders made after 6 April 2010:

0% charge on the first £2,000 (this is becuse the first £2000 in receipts has to be allocated against the OR's fees of £1715) so in essence it is still taken in fees just not by the Secretary of State or the IP)
100% charge on the next £1,700
75% charge on the next £1,500
15% charge on the next £396,000
1% charge on the balance
The total fee paid is capped at £80,000

Just as an example if the sale realises £100,000 the Secretary of State fees for doing even less work than the IP are £17,045.
That is taken before the IP can even think of drawing any fees and is totally non negotiable.

Thanks Tink, but this comes out of my share only? i.e. the money left after the mortgage is paid is divided in two, and then he gets his half untouched, and mine is just given directly to OR....
Does that sound right?

ETA - if anyone knows of any historical thread on here where a house sale with equity came about I'd be really grateful if they could send me in that direction. I've tried looking and not really found anything. I know it doesn't happen so often but it would be a good thread to have for advice, etc.