Marital property has been repossessed

BeingMe

Hi, not sure if this is the right place to post but I’m hoping someone might be able to help please? Long story short - I was granted a lump sum for half the equity in the marital home back in 2016 but XH never paid it. This year I decided to enforce the order and was granted a charging order on the house. 

When I began the process of getting an order for sale, I discovered the property has been repossessed by the mortgagor. There are also two other charging orders predating mine (but post consent order). I’m now anxiously trying to work out whether I am likely to see any of what I’m owed and when that might be following a very long, expensive and difficult battle just to get to this point.

Does anyone know anything about repossessions and might be able to answer a few questions for me please? 

1) how long following repossession is it likely the property will be listed for sale or auction? 

2) The mortgage was interest only on £40k capital. Will the mortgagor recoup the capital plus interest accrued to the point of sale or interest outstanding on the remaining term of the loan? (Crude calculation is suggesting £75k for interest on remaining term). 

3) how much (ballpark) will the costs of repossession, bailiffs, sale etc. cost? 

4) is there any way I can find out the value of the other charging orders secured on the property?

5) what’s the best way to value a property that is being sold as a repossession? The EA are not able to discuss this with me. 

Any advice very gratefully received.

Rosa_Damascena

I think you need professional advice here. Have you tried the CAB?

SuseOrm

Forget it its gone,  youll throw good money after bad chasing it.  

Its why you do not sign the decree absolute until you have the money in your pocket. (I made that mistake too,  very costly) 

BeingMe

Thank you both for taking the time to reply. I realise this is quite a niche issue but just hoping someone might work in the repossession field and can provide some guidance to stop me feeling so anxious. 

I hear what you’re saying SuseOrm. This is the end of the line anyway. Now the house has been repossessed I can only wait and see what it sells for and if I’ll receive anything from my share. I think once I know for sure, I will be able to move on. 

JGB1955

My daughter bought a re-possessed house.  It was bought, from memory, for something like 15% less than 'the going rate' for similar houses in the road.  I think they paid £120K, their neighbours sold (in the same year) for £140K.  Because my daughter bought at 'below market value' the sale isn't shown on Land Registry public records because it was 'discounted'.

.....Just so you get an idea of what price might be achieved.... 

anselld

As you say, too late to do much except see what is left after fees and sale.  One thing to note is that a charging order against an individual is against their share only so it cannot affect your share (if there is one after sale and fees).

pinkshoes

Was the lump sum of half the equity that was granted for the value of the property in 2016? (or 50% of the property value once it was sold?). 

Has the property increased in value since 2016?

If the other two charging orders pre-date yours, then did you not know about these prior to this agreement being made? Because it would seem to me that your "half" would be worked out using the 2016 equity (so valuation minus mortgage), then minus these two other charges, then you should be entitled to half of what remains.

What is the property roughly worth? 

Was the mortgage just in his name? If it is, then hopefully any debt can only be taken from his half.

You are going to need proper legal advice here, and check the exact wording of the equity agreement.

Mr.Generous

JGB1955 said:

My daughter bought a re-possessed house.  It was bought, from memory, for something like 15% less than 'the going rate' for similar houses in the road.  I think they paid £120K, their neighbours sold (in the same year) for £140K.  Because my daughter bought at 'below market value' the sale isn't shown on Land Registry public records because it was 'discounted'.

.....Just so you get an idea of what price might be achieved.... 

That explains it! I bought a repo that has never appeared in sold prices. I wondered why it wasn't there. Thanks.

GDB2222

I hate to say this, but your solicitor may have been negligent. Why spend money getting a court order, then not enforce it for 6 years?

user1977

JGB1955 said:

My daughter bought a re-possessed house.  It was bought, from memory, for something like 15% less than 'the going rate' for similar houses in the road.  I think they paid £120K, their neighbours sold (in the same year) for £140K.  Because my daughter bought at 'below market value' the sale isn't shown on Land Registry public records because it was 'discounted'.

.....Just so you get an idea of what price might be achieved.... 

In my experience repos generally sell for normal prices (for the condition they're in - obviously they tend not to have been well-maintained in latter years or tarted up for the purposes of marketing). So I would value it in the same way as for any other property.

BeingMe

It’s a long story but basically I received negligent legal advice in a half hour free with a solicitor before I left him - essentially I was told I’d be lucky to exit the marriage with only my debts and not some of his too. Knowing his record with money, this terrified me. I moved into rental and we did a diy divorce without a financial order in 2013. 

I later discovered this was incorrect advice and went back to court. I self repped until the final hearing whereas he had a very aggressive solicitor who dumped him right before the final hearing. A consent order was granted whereby I was to receive half the equity. He had three months to raise a mortgage and failing that, was to list the property for sale. 

I wish I’d been told at that point that I should get a CO as his solicitor then registered his own (I’m guessing for unpaid legal fees) but I stupidly believed XH the many times he promised he was about to list the property. Then Covid happened. I found the court process traumatic and we still had the ongoing child arrangements case going through court so I just couldn’t face it until this year.

The property is in his sole name as is the mortgage. Zoopla estimate the value between £175k and £260k so putting a proper value on it is difficult. It was valued at £190k in 2016 according to his ex gf (he lied about the value in court). The house was actually my childhood home and was sold to us by my parents. It’s a good sized Victorian, on a quiet street with beautiful views so does have a lot going for it. On the negative side I’ve been told he’s ripped out a lot of original features and it’s probably not in a good state of decoration. Plus there’s loads of furniture laying around and the door handles have been smashed off, presumably by bailiffs. 

This is what I’ve worked out so far:
value: £200k maybe? I know it will be sold at less than its market value as well but this is where I’m finding it difficult to estimate. 
mortgage: £40k
mortgage arrears and interest: maybe £10k? Hard to say as I don’t know how long ago he stopped paying the mortgage.
CO1: solicitors fees maybe £30-£40k plus statutory interest and fees
CO2: unpaid council tax maybe £20-£30k plus interest and fees
repossession costs: I read £17k is average but not sure
sale fees and solicitors fees: £5k? Is that realistic? 

I’m owed £70k plus £15k cms arrears