Making An Offer To Purchase Bankrupt's Share Of Property

michmar72

Hello


Just hoping for some advice, my boyfriend who I jointly own a house with was made bankrupt (VAT debt 102,000k).


It has got to the stage that the trustee has contacted me to tell me how much equity it due to my boyfriends estate and asking me if I would like to make an offer and if so what the offer is.This is his only asset.


Our property has been valued at £230,000 and our outstanding mortgage redemption amount is £104,712.14 , the total equity is £125,250.00 and therefore his share is £62,625.00


I have also had the house valued, so I agree the valuation. I have spoken with our mortgage provider and in principle they are happy for me to take over the mortgage and can offer me additional borrowing up off up to just over £45,000. I have no means of raising any additional funds, this will have me at my limit. My boyfriend is self employed and I want to make sure that whatever I do , I can afford on just my wages.


So my question is, do I go to the trustee with my one and final offer of £45,000 or is it a negotiation , can I/should I go in with a lower offer ?


Also does anyone know as I can't offer the full equity, can they force the sale of the house?


Thanks in advance


Michelle

TheGardener

Hopefully one of our resident experts will be along soon but in the meantime, its worth remembering that a forced sale cost money - and the OR has a legal duty to get the best deal for the creditors - and that can often be taking less now rather than waiting for a possibility of more. Although there is a shortfall between the valuation and what you can offer - I don't think all is lost. If the OR forced sale - then all the commissions and fees would need to be deducted along with the bill for their own time in administering the sale etc. They may also have to make allowances for the funds you would both need to set up home elsewhere so what you could offer is not necessarily too little.
I don't want to suggest it will all be plain sailing or that the OR will accept your offer - but its not a completely hopeless situation.
I would let the OR make the opening gambit and then negotiate from there. You are making absolutely the right decision about how much debt to take on yourself :T

44lisa44

I am in a similar situation so await to see if anyone replies to your question. My soon to be exhusband has just gone bankrupt. I am awaiting my first letter from the receiver and then I am hoping family can lend me the money to buy the beneficial interest.

I am hoping they will accept an offer as less hassle than making me sell but there is not alot on the internet regarding this. Most people seem to be in negative equity.

Has your boyfriend recently gone bankrupt or is it 2 years ago when most people seem to say the receiver looks at dealing with the house?

I await any replies or information.

mike864

Just what I was looking for, we were discharged [wife & I] March 2016 & I had a meeting October last year with my Trustee with a view of doing a deal.

We have very little equity in the primary residency in my view, I have dealt in property for over 25 years & the house has history of subsidence we tried to sell in 2010. Agreed sale with 3 different couples, all pulled out when they found out that the property had been underpinned [1993].

I have told the Trustee this but he seems to think that their is £45,000 equity, less £10,000 for legals etc so he said he would accept £35,000 - no s%%t!

I offered him £5,000 7 left it at that.

My position is what will he do now? Wait & see [appreciate they have a further 2 years to take action] or go back to the table?

I have considered getting a valuation based upon the history & an agents view bearing in mind the previous subsidence &/or a building surveyors opinion.

Would be interested in anyone who has been in same position.

Mike

michmar72

Hi both


I'm really sorry , I think I forgot to subscribe to my own post!


44lisa44 ,my boyfriend was made bankrupt in Sept 2015.


I have in put an offer of 40K through my solicitor (Trustee said the equity was 62275) My offer is based on going through an actual mortgage application and knowing what my actual repayments would be. The trustee has come back now and said they want to see the actual mortgage application and know how quickly it could be completed. So just completed the mortgage application and waiting for that to come back, so I can pass it to them.


I did this through solicitors in the end, as I found the trustee very un responsive to me and they did not notify us when they were having the house valued, I just got a call from a local estate agents. Made an upsetting time more upsetting. I guess I will never really know if the solicitors will have saved me money or I could have done it myself but I wasn't confident enough.


I get the impression that as long as the offer is not ridiculous , they have to consider it, bear in mind the cost of actually selling a house.


Mike864 ,I have included the link to another website that I registered with and as you will see they did question the value placed on the property and suggested an actual survey, rather than estate agents. I never actually did that , as I opted to spend the funds I had on a solicitor .


Might be worth you both having a look at the forum below


Legalbeagles


http://legalbeagles.info/forums/showthread.php?t=79432&goto=newpost


Best of luck to both of you

Djem6

Mike864, good luck , we are about to enter a similar situation with out trustee I suspect! They have asked for a valuation from their preferred estate agency this week , see my thread below ! Please update if you hear anymore following your offer

mike864

Hi michmar72

thanks for the link, I shall have a look & see where it takes me.

mike864

Djem6

thanks, did you forget to insert a link to your thread?

Djem6

Hi,
It's the one immediately under this one .

mike864

Hi all

apologies been a long time since I came here, just wondered how you have got on with your trustee & valuations.

Here to support you.

Best regards

Mike864

BJV

The house we bought earlier this year was from someone who had gone into bankruptcy. As they had children under the age of 18 they where allowed to stay in the house it looks like now for nearly four years after.

We know now that they had been told to sell the house and had accepted offers from three other people over a two year span. That said they made it so difficult that the buyers had to out in the end.

We must of struck lucky in hindsight although it did not feel like it at the time and our offer ( we where completely un-aware of any of this at the time ) which we thought at the time was very cheeky and would be automatically rejected was accepted. It was £65,000 less than the price they wanted but I got the impression that it was not their choice if they sold or not and in fact they left it until the very last day.

I hope never to find out what it is like to be on the other foot and wish you all the best. I can only imagine that it must be heart wrenching.

Good luck.