Beneficial Interest......so confused!

fiona1125

Hi all,

Thanks is advance for your answers.

I am so confused, my partner has no choice but to go bankrupt. We have been paying into an IVA but due to loss of work he has made the gut twisting decision to go bankrupt. He is now officially bankrupt as a of a few days ago.

We jointly own a property, the mortgage is £158,500 and the property value is £160,000 we have recent valuations. The house prices just seem to keep going down and down on our road. He has had the interview with the OR and she wasn’t very clear on what happens to the property, but she did say she had no interest in the property, she said we would receive information in the post and we are still panicking that we are going to lose the house and we have 3 kids.

I have been searching the internet and getting more and more stressed. It says I can buy the benifical interest in the property.
How would I do this?
Would I need to remortgage?
Can I keep the mortgage I have and remove my partners name?
Do I just buy his share of the £1500 equity and pay it to the OR?

I wouldn’t get a mortgage as my wage won’t allow it. I can afford the mortgage but wouldn’t be able to get accepted for one on my own.
I really don’t get it at all and can’t wait for the letter to come through.

Just want to say as well, I am not asking these questions behind my partners back. We just don’t want to lose the house and don’t know where we stand.

Thanks so much.

debt_doctor

Hi,
As you are joint owners then half the equity is yours, so the bankrupts equity is £750. Considering sale costs of say £3k then there is no equity.

Are you still in an IVA?

The OR has up to 3 years to deal with the property before the interest automatically reverts back to the bankrupt at no cost.

In any event the house cannot be sold for the first year due to 'home rights'.

It is indeed possible for you to buy the bankrupts equity share - a figure of £1k plus costs (say £300) is often used - but your OR / Examiner said they have no interest in the property.
If this is the case then dont make an offer at all, just wait for the letter and then ask them to 'disclaim' the property as soon as they can.

A general rule (currently) is that if the bankrupts share of equity is less than £10k, then a charge would be placed on the property rather than a property sale.

DD