beneficial interest - bankruptcy

jodenice

beneficial interest - bankruptcy
I am trying to find out the best way forward - my boyfriend has over £25K of debts, we have a flat, it was bought for £134K but I put down a deposit of £7K (although I said it was joint deposit) so our mortgage is for £127K.

we are looking at various situations that may help and when discussing bankruptcy I ruled it out as I was so scared we would lose the house. But I have since heard that if I bought the equity off of him then he could go bankrupt without us losing our home.

Would he still be able to be named on our mortgage?

Can anyone help?

x

rog2

Depending on the level of equity, in the flat, the OR/Trustee will 'vest' an interest in his beneficial interest, in the property. Whilst the OR/Trustee can force a sale, this would only be done as a last resort.
Normally, you or a relative/close friend would be given the option of 'purchasing' your bf's beneficial interest.
This does not mean that your bf would have to remove his name from either the deeds of the property, or the mortgage.

Richard_S

jodenice wrote: »

beneficial interest - bankruptcy
I am trying to find out the best way forward - my boyfriend has over £25K of debts, we have a flat, it was bought for £134K but I put down a deposit of £7K (although I said it was joint deposit) so our mortgage is for £127K.

we are looking at various situations that may help and when discussing bankruptcy I ruled it out as I was so scared we would lose the house. But I have since heard that if I bought the equity off of him then he could go bankrupt without us losing our home.

Would he still be able to be named on our mortgage?

Can anyone help?

x

Hi jodenice,

I was tempted to suggest bankruptcy when I posted on your thread on the DFW Board but thought I'd wait and see what other suggestions you got on there.

Depending on where you live there's a chance that the value of your house has slipped in recent months so the amount of the B.I might not be as high as you think.

Before your B/F starts to seriously consider bankruptcy you really need to establish the true market value of your house. Three valuations is usually seen as being a good test of the value of a house and the O.R does check estate agent's valuations against the web based valuations.

The O.R is more interested in what houses are selling for in your area, not what the asking price is and that could well work in your favour. Once you've established the value of the house you can then work out whether you can realistically afford to purchase you B/F's B.I.

Can you prove that is was you personally that put the deposit down? That would also help you in terms of your B/F's share of the equity being less than yours and consequently less for you to buy.

Richard

jodenice

Hi Richard (again!)

I can prove the deposit money was in my account and that I paid it by Bankers draft and that the cheque was made out to me.

I'm going back to the other thread to write down what the CCCS lady said to me, she was very informative but my head is absolutely spinning!

The one thing was, that she made it all sound quite easy but I know from my own past experience that some aspects were actually quite hard!

Jo x

Richard_S

jodenice wrote: »

Hi Richard (again!)

I can prove the deposit money was in my account and that I paid it by Bankers draft and that the cheque was made out to me.

I'm going back to the other thread to write down what the CCCS lady said to me, she was very informative but my head is absolutely spinning!

The one thing was, that she made it all sound quite easy but I know from my own past experience that some aspects were actually quite hard!

Jo x

Hi jodenice,

Things are seldom quite as straightforward as they seem, and you know that as well or better than most, given what you've already been through.

If you can prove categorically that the deposit was your money, and not money that you saved together, and just banked in your name, then there is no B.I in the house; the only equity is your initial deposit.

You need to check that with a solicitor, preferably one specialising in insolvency, because it's quite a complicated area, but if I'm right then there's absolutely nothing to stop your B/F clearing his debts through bankruptcy with no additional cost to you.

I won't post on the DFW Board because those guys and gals are the experts with DMP's and long term repayment of debt; my view is that life is too short for that approach.:rolleyes:

Richard