Insolvency letter about official receivers interest in house HELP ?

Minkym00

deliveryguy1 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. 

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

You can certainly try making an offer below the 50% of the equity, but be prepared for this not to be accepted. Also you should beware of borrowing the money yourself. You CAN borrow it (providing the friends and family know you are bankrupt), but you need to make sure that the money doesn’t pass through your hands (i.e. your bank account) as it could be deemed as after acquired property and claimed by the OR in any case. Make sure the OR knows it is your partner that is borrowing the money.

deliveryguy1

there are no houses for sale in are area and seems that even a house in bad condition is fetching a premium i have had valuation for 85k this leaves me far short of the amount needed so ? is what happens now ? do i get 12 months to find somewhere ? do i get a second opinion on value ? what would you do ? 

Minkym00

It doesn’t hurt to get another valuation, however it’s not likely to help you much. With £27.5k of equity in the property the OR will probably appoint an Insolvency Practitioner to deal with the asset if your partner can’t buy out your interest. The IP will arrange for the property to be sold. 

Sorry that I don’t have anything more positive to say but I can’t see a way out of this unless you can get your hands on the cash. 

deliveryguy1

Minkym00 said:

It doesn’t hurt to get another valuation, however it’s not likely to help you much. With £27.5k of equity in the property the OR will probably appoint an Insolvency Practitioner to deal with the asset if your partner can’t buy out your interest. The IP will arrange for the property to be sold. 

Sorry that I don’t have anything more positive to say but I can’t see a way out of this unless you can get your hands on the cash. 

what sort of time frame for sale of property? 

Minkym00

Really impossible to say. The OR has three years from the date of the bankruptcy order to deal with a family home.

CStar75

In my experience, keep the valuation of your property as low as you can. See if you can talk and negotiate with the estate agent providing the value. Trustees wanted to do an internal valuation of our home, we arranged our own RICS surveyor who valued a lot less than their external valuation. After negotiation with the Trustees, I was able to buy my husband's share (as he was the bankrupt) for less than quarter of the equity value as I could prove that was all I could afford. They accepted the offer thankfully - the pandemic may have helped and the fact we are almost at the 3 year mark in which they had to act! I have to say I now sleep easier and hope you find a resolution too as it is a stressful situation to be in.

deliveryguy1

CStar75 said:

In my experience, keep the valuation of your property as low as you can. See if you can talk and negotiate with the estate agent providing the value. Trustees wanted to do an internal valuation of our home, we arranged our own RICS surveyor who valued a lot less than their external valuation. After negotiation with the Trustees, I was able to buy my husband's share (as he was the bankrupt) for less than quarter of the equity value as I could prove that was all I could afford. They accepted the offer thankfully - the pandemic may have helped and the fact we are almost at the 3 year mark in which they had to act! I have to say I now sleep easier and hope you find a resolution too as it is a stressful situation to be in.

unfortunately your advice has come a bit to late my partner applled for a remortgage we thought we were going  to get 20k  so offered 20k was refuses so offered 26k  just wanted it over with they accepted but remortgage offer was reduces to only 8k so she can get 6k leaves 12k short mother in law lending her 13k but problem is 8k wont get released till charge is off im not sure what happens next if we cannot sort the money out how long do we have to move out nightmare started all over again  fresh start may be answer somewhere else 

CStar75

Best of luck to you and so sorry I was too late, it was just by chance I came across your message - it's been a while since I've been on the forum.  Can they work with you to find a repayment plan solution or accept a charge on the property as you're offering a large up front payment? Have they threatened a sale as they may be trying to push you into a corner as all they are after is money? Is it worth their while to take the property with the agro of recovering the funds or working with you to find a solution? I hope you get sorted and can see why a fresh start is tempting - they are vultures!!

deliveryguy1

only give me 30 days to stump up the cash  which is 9th September  mortgage has been cancelled my other half decided she  wont  take her mothers saving so its turned into  lost cause not worth the fight  what will be will be