Advice

Extended_tether

Hi everyone
I’m starting to run out of manoeuvre room. Getting fearful for the future.
Looking at my options.
Ad regards DMP , I need some help and advice on the following.
Have two homes , both bought at the height of the 2007 property boom in NIreland when financials were handing out mortgages like sweeties.
One is the family home. Interest only mortgage . £178000 remaining. House value £145000, so negative equity.
Second home we bought from my wife’s family. Paid £130,000. Outstanding mortgage £83000. House value £145000.
Wife’s parents pay a rent if £300pm and still live in the house.
The idea was that the 2nd house would pay of the first etc . ����!♂️. I know . Terrible idea.
At the time wife’s family solicitor advised them to add a legal precondition that they would be entitled to the first £100k if the house was sold. I think it was to ensure we would not sell them out of the house.
Anyhow, it means that if we sell the house they are legally entitled to the first £100k of the profit.

My question being, that with the DMP and the two properties.
The first one, the family home is already in negative equity, and could be for some
time, and is unlikely to be sold off by any creditors

Any ideas on the second. If sold now, it does have some equity but we would receive nothing as legally, my wife’s parents owe the first £100k profit.
What would the creditor adjudication be over this property?
Any help or advice would be much appreciated

sourcrates

Moved to general forum.

sourcrates

Hi,

There would be a very long legal process to complete before any property was in danger, orders for sale are now so extremely rare, they no longer keeps records of how many are granted.

If your repaying your debts via a DMP it’s unlikely further action would be taken, especially as they are in negative equity, the creditors would get nothing.