rental property

maccasback

Hi..I'm looking at possibility of bankruptcy . I have a flat I rent out (mortgage joint names but just myself looking at bankruptcy) and it's in slight negative equity...I have been advised that the OR will take the rent from the flat leaving me to pay mortgage etc out of my own money...this would be impossible and looking at repossession !! Would the OR do this?
Appreciate any advice

Minkym00

I assume you are equal joint owners?


If so, when dealing with a property owned by two joint owners, of which only one is subject to bankruptcy, the official receiver as trustee should claim 50% of the rent after the direct costs of the assured short-hold tenancy have been paid. The mortgage would be classed as a direct cost.


They will only claim any surplus.

maccasback

the property is in joint names ..
We have to pay maintenance fees and ground rent as well . Are these classed as direct costs ?

MEM62

maccasback wrote: »

the property is in joint names ..
We have to pay maintenance fees and ground rent as well . Are these classed as direct costs ?

In short, yes.

xFlake

Minkym00 wrote: »

I assume you are equal joint owners?


The mortgage would be classed as a direct cost.


They will only claim any surplus.

Hello. Just to clarify the mortgage is not a direct cost for the capital element and can be claimed.

See paragraphs 31.12.82 and 31.12.148 and 31.12.91
https://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch25-36/Chapter31/part12/Part%202/Part%202.htm#91

maccasback

Thanks for the information...been very useful so far