Insolvency letter about official receivers interest in house HELP ?

deliveryguy1

I went bankrupt in January 2020 and was discharged January 2021  i have a joint mortgage with partner Yesterday received letter from Insolvency Service 

RE:MY NAME

SUBJECT TO CONTRACT

Property address :Address were i live

With reference to the bankruptcy order was made on the 29th January 2020 in the above court and the case has been transferred to the above office to deal with the property.

As the bankrupts trustee, i have a continued duty to deal with the beneficial interest and the legal title of the property for the benefit of creditors. if the value is over £1000 it may be possible to transfer the beneficial interest and legal title to you,your spouse,partner, relative or a friend.

On current information available it would appear that our interest in the proprty is now worth approx  £3478.00 this is figure based on the following calculation:

Property Value                                                          £34,918.00

Natwest bank                                                            £27,961.00

Total EquIty                                                                £6957.00

Joint Owners Share                                                   £3478.00

OFFICIAL RECEIVER INTEREST                            £3478.00

Before any transfer can proceed, we have to agree on a value of the interest being transferred .to do this, you will need to provide an independent valuation of the property and up to date details of the amount owed to mortgagees and others charges over the property . i would also request that you now make the necessary arrangements for an estate agents valuation.

If after i received the above information we can agree on a value to be paid for the beneficial interest and/or legal title of the property on completion of the transfer,, i will require payment of solicitor,s fees £225 

if someone else is in the position to make an offer, then you or the person should let me have the details and the offer as soon as possible certainly by 04 August 2021 

1 Take steps to apply to court under section 313 of the insolvency act 1986

2 Take steps to appoint an insolvency practitioner or trustee in place of me

i have recently become self employed driving for uber eats  i am a career  and look after my partner  roughly earn £120 a week part time total household income including benifits  £460 per week  for the 2 of us 

estimated property value in are area £90000
my house is in need of repair old electric roof needs at least felting or replaces    20 year old kitchen  20 year old bathroom  windows upvc but 25 years old with damp walls

what should i do now ?

What estate agents valuation report should i get taking into account condition of property?

any other advice greatly received thanks in advance

deliveryguy1

sorry The property is worth £75000 to £80000 in the condition it is in please help thank you

Minkym00

So it’s not really clear from your posts….what do you estimate the value of your property to be? As their value is vastly less than the £90k you’re suggesting it might be worth.

fatbelly

They seem to say 

Property Value  £34,918.00

so valuing it at 75-80k could cause a problem.

However the value is what someone would pay for it - your letter says:

you will need to provide an independent valuation of the property and up to date details of the amount owed to mortgagees and others charges over the property . i would also request that you now make the necessary arrangements for an estate agents valuation.

If the OR share remains at £3500 the most likely outcome if no-one can buy this from the OR, is that it 're-vests', i.e. you get it back. If the share goes over 5k a charging order is likely.*

I'm not sure what would happen if your response was 'I don't want to dispute your figures'

See what others think.

Can I just ask what you thought was going to happen here? It's very risky to go bankrupt when you have a property with equity. Is this property where you live?

* I think this is new guidance (March/June 2021) and differs from older guidance that many debt advisers still seem too be using
https://www.gov.uk/guidance/technical-guidance-for-official-receivers/28-freehold-and-leasehold-property

deliveryguy1

Minkym00 said:

So it’s not really clear from your posts….what do you estimate the value of your property to be? As their value is vastly less than the £90k you’re suggesting it might be worth.

this is what i don,t understand  this is what it was worth 20 years ago when we bought  it the estimates in are area are £90k my house is worth 75k to 80k it says the official receivers interest  £3478.00  and the goes to say we need to agree avalue of the interest being transferred after the estate agents valuation. then says the best price for the beneficial interest . i,m just confused

deliveryguy1

Property Value  £34,918.00

so valuing it at 75-80k could cause a problem.

However the value is what someone would pay for it - your letter says:

This is what i don,t understand  this is what it was worth 20 years ago when we bought  it the estimates in are area are £90k my house is worth 75k to 80k it says the official receivers interest  £3478.00  and the goes to say we need to agree avalue of the interest being transferred after the estate agents valuation. then says the best price for the beneficial interest . i,m just confused

In the current market the house would fetch 70k to 80k  90k if it was in better condition what would the best thing to do get a estate agents valuation or survey done ? and if survey what type of survey?
My house is in need of repair old electric roof needs at least felting or replaces as got leek and damaged felt   20 year old kitchen  20 year old bathroom  windows upvc but 25 years old with damp walls in bedrooms outside walls

fatbelly

So potentially your interest here is 25k - maybe a little more - an estate agent valuation is probably best.

What were you planning to do? You must have realised there was equity in the property.

Minkym00

So it does sound like you could have a problem. I imagine the only reason this has not been actioned already is because someone at the Insolvency Service has screwed up and used the value at last purchase at the Land Reg rather than get a rough current estimate from Zoopla….and they’ve now realised their mistake.

With a £28k mortgage your beneficial interest is potentially at least £23.5k and it sounds like your partner cannot afford to pay this to the OR to buy out their interest. 

I don‘t think it’s going to be enough to say that you don’t dispute their figures. 

deliveryguy1

Minkym00 said:

So it does sound like you could have a problem. I imagine the only reason this has not been actioned already is because someone at the Insolvency Service has screwed up and used the value at last purchase at the Land Reg rather than get a rough current estimate from Zoopla….and they’ve now realised their mistake.

With a £28k mortgage your beneficial interest is potentially at least £23.5k and it sounds like your partner cannot afford to pay this to the OR to buy out their interest. 

I don‘t think it’s going to be enough to say that you don’t dispute their figures. 

this is what i thought but do you think the bank will remorgage for the 23k witch i need ?

deliveryguy1

So it does sound like you could have a problem. I imagine the only reason this has not been actioned already is because someone at the Insolvency Service has screwed up and used the value at last purchase at the Land Reg rather than get a rough current estimate from Zoopla….and they’ve now realised their mistake.

With a £28k mortgage your beneficial interest is potentially at least £23.5k and it sounds like your partner cannot afford to pay this to the OR to buy out their interest. 

I don‘t think it’s going to be enough to say that you don’t dispute their figures. 

im getting the house valued  on Tuesday and will keep you informed but ? over offer what percentage should i offer if it does turn out to be 23,5 k.  i will have to borrow of family members when would it have to be paid? any help greatly accepted

deliveryguy1

fatbelly said:

So potentially your interest here is 25k - maybe a little more - an estate agent valuation is probably best.

What were you planning to do? You must have realised there was equity in the property.

as i was not allowed to earn an money until 12 months had passed i could not do anything  the house was only worth 60k  owed 37k  3 years ago when i got into this mess with the vat wanting 90k and 60k fine  i closed down  and was made bankrupt last January  18 month ago wasnt expecting an covid crisis and house prices to go through roof and  to only get 3 weeks notice to make an offer can borrow some money but probably get hold 15k 18k at a push recently gone self employed so unlendable with no accounts thats wky im on here fore some advice thanks in advance if yo have .