Buying my exes share - How flexible will the Official Receiver be? 6 February 2022 at 9:47PM in Bankruptcy & living with it 3 replies 292 views

Mummymidland

Hello, I had my final hearing for divorce finances a few months ago after being 2 years into the process and an order was made to have the house fully signed over to me with no payment, my ex was in contempt of court having never even filed a Form E.. We're two weeks from completion on my new mortgage and transfer of title but I've been notified of the Official receiver putting a restriction on the house because there was a creditor petition for my ex to be made bankrupt which went into court 2 months before our final hearing. He was declared bankrupt one month later but they're saying that my family court order isnt valid as the interest in the house belongs to the OR from the point of the petition. My ex hid the proceedings from the Judge at our family hearing and the Bankruptcy court didnt tell family court about the petition so the judge has made the order in good faith. 

I've got an appt tomorrow with a solicitor, but I've been working out what might happen if I end up having to buy his share. I know I can claim back 50% of capital payments off the mortgage as he's been gone almost 4 years and I've always paid the mortgage so this would possibly give me more than 50% of the beneficial interest, but I'm wondering if anyone knows how flexible the OR would be with an offer for the remainder. Do they take off things like cost of sale, do you get a discount for making an offer quickly? 

I am prepared to make a cash offer quickly because I dont want my new mortgage to fall through but I'm not sure what level to pitch it at or whether the OR will even allow the new mortgage to go ahead. Its for exactly the same amount thats on the current mortgage and Help to Buy loan, this is just to consolidate it into my name and get rid of the HTB loan.

thank you 

flipflopflo

Sorry I’m not going to be able to help with your questions but I’m going to ask a couple of questions that I think the experts are going to want to know to be able to help. 

1) whe did your ex actually move out?

2) when did he last pay any of the mortgage?

3) Do you know how much the house was worth when he moved out? ( if you’re not too sure have a look at Zoopla and Rightmove for the sold prices of houses like yours.)

4) How much is it worth now?

Good luck with it all. 

Minkym00

The OR is unlikely to be flexible and the onus will be on you to prove that the that 50% beneficial interest shouldn't be applied. Yes, you have been paying the mortgage but property owners are jointly and severally liable for the mortgage and technically your ex was entitled to occupational rent, which would be offset against the mortgage payments.

Get an up to date valuation and start negotiating with them. 
 

Mummymidland

Thank you, I was about to complete on a new mortgage and transfer of title so I have a recent RICS valuation. The solicitor confirmed the online advice I got today when i saw them that a sensible offer will be market value minus any mortgages minus sale costs, and minus 50% of capital repayments since he left which was 3.5 years ago. He never paid a penny, all money was separate and he just paid for his own car/mobile/hobbies - and my car which was a "gift" but took it with him when he left. I don't think any of that will be relevant to the Official Receiver though. 

I just wondered if they do sometimes take family circumstances in to account - thank you for the replies