Advice on dealing with insolvent estate :-(

Keep_pedalling

Sea_Shell said:

Keep_pedalling said:

Simply write to his creditors explaining that the estate is insolvent and that no one will be administering it. In the case of the house, assuming that there is only one lender involved, I would include the house keys with the letter.

In these circumstances, are you allowed to remove ANY personal possessions from the property first?

Not necessarily anything of value?

No problem with removing things of little or no value (photos, personal documents ect). It will probable cost the creditor more to empty the rest than it is worth.

getmore4less

Sea_Shell said:

Keep_pedalling said:

Simply write to his creditors explaining that the estate is insolvent and that no one will be administering it. In the case of the house, assuming that there is only one lender involved, I would include the house keys with the letter.

In these circumstances, are you allowed to remove ANY personal possessions from the property first?

Not necessarily anything of value?

Acts that secure property, assets or animals for safe keeping are generally not considered intermeddling.
How long you keep stuff in case someone needs it  how long is a piece of string.

frayedknot

I don't know how anyone can owe £85 grand on a £75grand house . Have house values plummeted where you live? Round here they've gone up about 20% in the last few months and even absolute depressing hovels are going for £100 grand+. 75k would buy you nothing. Zilch. And I live in a northern town. Are you sure the house valuation is correct?

Mjal1979

frayedknot said:

I don't know how anyone can owe £85 grand on a £75grand house . Have house values plummeted where you live? Round here they've gone up about 20% in the last few months and even absolute depressing hovels are going for £100 grand+. 75k would buy you nothing. Zilch. And I live in a northern town. Are you sure the house valuation is correct?

I will have to get it valued but it’s a case of it being in a bit of a mess and him having lots of arrears on it. 

He’d been on interest only for years and years.

thanks all for your guidance, one of the credit cards has advised they’ve closed his file. So 2 more to go. 

I will try the approach of writing to the mortgage company and advising of insolvent estate, just to chance my arm

getmore4less

Mjal1979 said:

frayedknot said:

I don't know how anyone can owe £85 grand on a £75grand house . Have house values plummeted where you live? Round here they've gone up about 20% in the last few months and even absolute depressing hovels are going for £100 grand+. 75k would buy you nothing. Zilch. And I live in a northern town. Are you sure the house valuation is correct?

I will have to get it valued but it’s a case of it being in a bit of a mess and him having lots of arrears on it. 

He’d been on interest only for years and years.

thanks all for your guidance, one of the credit cards has advised they’ve closed his file. So 2 more to go. 

I will try the approach of writing to the mortgage company and advising of insolvent estate, just to chance my arm

Stick the postcode in rightmove
https://www.rightmove.co.uk/property-for-sale/search.html?searchLocation=AANN+NAA

adjust distance and basic filters like 2bed flat

and the same for actual sold  prices  adjust distance if needed to get a sample.
https://www.rightmove.co.uk/house-prices/AANN-ANN.html

Should get an idea quite quickly.

Mjal1979

Hi all, thank you for all your advice so far. I’ve applied for probate (it was £1.50) due to the net value of the estate. 

I’ve also informed the creditors of the lack of funds in the estate, which one has come back and mentioned that it was actually secured against the value of the house. 

They’ve asked if we have a solicitor acting on behalf of the estate, and in order to get the entry on the property removed they will need proof of negative equity. A valuation report and draft completion statement.

I presume that this is something that an estate agent can provide? Or would we have to pay for a surveyor and report?? 

Would draft completion statement come from the mortgage company as part of the repossession? 

Thanks all :-(

MovingForwards

Spend £3 and check to see what's registered on the title deeds:
https://www.gov.uk/get-information-about-property-and-land/copies-of-deeds

An estate agent can provide a written valuation.

A completion statement won't be available as the property isn't being sold, or do they mean something else such as estate accounts to show assets and liabilities?

Mjal1979

I’m not sure, I will see if we can get a written valuation from an estate agent. 

Mjal1979

Seems like the probate process has actually stalled, they need details of his divorce papers. If that makes this any simpler