Trustee and assets

CStar75

I am looking for some help please. My husband is a discharged bankrupt almost 2 years in (not our choice). The trustee believes there is equity in the home although we are challenging their driveby valuation as the property has a 54 year lease on it. Another creditor did a valuation a year ago valuing a lot less than the Trustee. I am keen to remain in the home as we have school aged children but will struggle to raise the funds they are seeking especially in a pandemic.  Is it worth challenging what they believe the equity to be? Will they force a sale given our children are in their GCSE years? Thank you.

luvchocolate

Could you get your own valuation from a couple of local agents?

CStar75

Hi, thanks for replying. Yes I have estate agent valuations but what they suggest if the property is freehold.  

CStar75

Hi, I looking for further much appreciated advice.  I have a RICS surveyor booked to value my leasehold home as the Trustee have asked to do an internal valuation as we have challenged their driveby valuation.  I don't trust them so hence arranging our own as they have ignored my request for a copy of their driveby valuation report.  Do I have the right or choice to decline their internal valuation; will the independent RICS survey satisfy their request?

Minkym00

It may be best to consider this from the trustee’s point of view. Let’s say their driveby valuation says there is, for example, equity of £100k in the property. They will therefore assume that your husband’s interest in a jointly owned property is £50k. They will then request that figure from you to buy out his interest.

However, if you can provide evidence that the equity is considerably less due to a short lease (and for this i would provide them with 3 independent valuations) then it is in their interest to accept a lower offer from you rather than to litigate the matter in court as legal costs will potentially reduce the realisable value of the asset, and take much longer.

It is in your interest to offer a figure to buy out the interest so, get 3 valuations, and offer a sum which is a reasonable market price (or even slightly lower) to the trustee with that evidence.

CStar75

Thanks so much for your reply.  I am using a specialist leasehold RICs surveyor which is at a cost to us.  Should I use additional RICS surveys and incur extra costs or get an up to date estate agent valuation as I have already provided an 18 month old freehold valuation? Is a regulated RICS surveyor the best option for getting a true figure? Can I reject the Trustee request to do an internal valuation and insist a copy again of their driveby valuation which they have failed to provide so far.  I am not sure they have even done this which is possibly why the information isn't forthcoming.  I have made an offer to repay based on what we believe the property is worth and the estate agent valuation which was rejected so they have asked to do an internal valuation following a 2nd offer we have made.

Minkym00

Using a RICS surveyors certainly won’t hurt but I wouldn’t incur more cost to get additional valuations. A normal high street estate agent should be fine, and yes get an up-to-date valuation.

I’m not sure why you would reject the trustee’s request for an internal valuation, I would jump at it. When the valuer is there you can talk to them about the short lease to ensure they give the trustee an accurate figure.

CStar75

Good point, I'm very nervous it will be a biased valuation but having our RICS survey to counter balance with their agent might be the way forward.  Many thanks.

CStar75

Hi, sorry another question. So I have now have the RICS survey through and it's £33k less than their external valuation.  When calculating an offer to repay the Trustee, I wondered if they make any allowances for my husband to rehome his family or do they expect that to be covered by my share of the equity and basically wipe his asset out completely to £0 for their gain?

Minkym00

Sorry, but the family circumstances and any allowances for moving/ rehoming will not be taken into consideration. 

CStar75

Pleased to say our RICS survey halved the value of the original Trustee estimation on the remaining equity so appreciate the suggestion as the Trustee is now accepting that figure.  However, I need to try and raise the finance to effectively buy my husband's share to keep our property. I just wondered with finance applications, will lenders accept the reason I am asking for the funding, ie. will the application likely be successful? If I can't raise the finance, are there any other options available to remain in the home ie. charges, etc? Is a Trustee likely to accept this or is a quick repayment all they ever accept? Thank you.