| T O P I C R E V I E W |
| dougal |
Posted - 17 March 2009 : 21:08:14
sorry to go on ....the ip has wriiten asking if i wish to make a reasonable offer to purchase his interest in my ex half of the house. what does anyone consider reasonable if his half is around the sixty grand mark. thanks. also would the fact that i have aan eleven yr old child to raise make any differnce? |
| 9 L A T E S T R E P L I E S (Newest First) |
| John |
Posted - 19 March 2009 : 21:11:28
Hi
I hope it doesn't come to it but if you should decide to sell remember the trustee has 3 years in which to ensure it happens.
As long as you give them updates on a regular basis and they know you are genuinely trying to sell you should get a year or maybe even two. Although the trustee will also be mindful of the market, whatever happens in the near future, and will not want to delay too long if the market continues to fall.
Please remember though, the suggested bid of £30K will only be considered if you intend to keep the property. If you sell, or it is sold at auction, then you can only expect to hold on to 50% of the net sale proceeds and if you are selling the trustee must agree the price first (not usually a problem but just to remind you).
Best of Luck
John White
England Jackman & Spacey |
| dougal |
Posted - 19 March 2009 : 17:42:23
john your a star. you have simplified it for me. I have 3 very recent valuations ranging from 175 to 195. if i cant raise the bi and i will know that in the next few weeks and i put it up for sale myself do you know how long the ip will wait for a sale should no viewings be forthcoming and then what happens does it go to an auction? thanks |
| John |
Posted - 18 March 2009 : 22:40:53
Hi
ok let's work with what we have for the moment and assume the equity is 50/50.
You need to get an estate agent's valuation of the property based on a quick sale as at least one will be required by the trustee then we know what we are dealing with.
If the value were £175K The very best price the trustee will make at auction is 75% of the market value. 75% of £175K being £131250.
less £54K mortgage less £1K solicitors fees (if there were a sale). The balance in equity then being £76,250 50% of which is £38125.
If it were me I would offer £30K to start.
The question being will you be able to afford a new mortgage of £84K? Remember if your personal credit rating is good then there are some good deals out there right now.
John White
England Jackman & Spacey |
| dougal |
Posted - 18 March 2009 : 22:24:53
hi, i have a photo copy of the original premium bonds which i am sure he still has and are worth a fair few thousand. i have nothing else in writing unfortunately. |
| John |
Posted - 18 March 2009 : 21:59:25
Hi
there is a 3 year rule during which the IP (or trustee) must realise your ex husband's interest in the property or it automatically becomes your ex's once again. With the level of equity in your property the trustee will never allow that to happen.
In your situation you would expect just under a year before the trustee wants the sum agreed or a forced sale to occur.
This isn'y easy via the forum as there are some delicate questions that need answering.
But anyway, you are now paying the mortgage in full and have done so for 13 months.
Your husband paid the majority into the household prior to that.
This means that contrary to my previous post you would not want to raise the issue of Equity of Exoneration as the trustee I feel would prove that your ex's interest in the property may be greater than the otherwise assumed 50%.
(Do you have any record of the monies he walked away with as this may help your case, is it documented anywhere?)
John White
England Jackman & Spacey |
| dougal |
Posted - 18 March 2009 : 21:22:05
thank you john. he left almost 3 yrs ago and i have been paying everything for 13 months, the property was prob worth about 205 when he left. he had a lot of money in premium bonds and various other stuff. i hope they find it and make him give it up. what does the 3 yrs thing mean on my letter about realsing the interest to creditors within 3 yrs? |
| John |
Posted - 18 March 2009 : 21:08:42
Hi
please don't apologise.
Answering questions such as yours is why I am here.
May I ask how long since your ex left and you have therefore been paying the mortgage on your own?
And do you recall the approx value of the property when your ex stopped contributing to the mortgage?
John White
England Jackman & Spacey |
| dougal |
Posted - 18 March 2009 : 20:55:00
hi john, its actually my ex husband who has gone bankrupt and i am the one who has paid the mortgage etc. the ip letter states he has to realise his interest to the creditors within 3 yrs?. we have joinly owned the property for 11 yrs and although i worked he earned alot more than me .so the house is worth between 175 and 195 and we still owe 54 on it. if i cannot raise the bi and have to sell who pays the cost of selling etc? sorry to pester but am having sleepless nights and endless tears.....you heard it all before. thanks for your time |
| John |
Posted - 17 March 2009 : 22:34:19
Hi
this is a negotiation situation and the important thing is that if the trustee forced a sale of the property in the current market it would probably realise approx 75% of it's current market value.
So do the maths, then deduct the necessary sum, again if a forced sale occured, for stamp duty and legal fees which should all be paid from your wife's interest.
In principle there lies the starting point of the negotiation but there are other factors that could help your case but you don't have long.
How long have you jointly owned the house?
Where did the deposit monies come from, you, your wife, or joint?
Throughout the term of ownership who was earning the majority sum and therefore most likely contributing the larger share of income to the household?
If the individual incomes were not equal and your net income has always been the majority income what is the ratio of the 2 incomes?
The answers to all of these questions could help you build a case which is more in your favour.
The process by which you consider all of these factors in order to establish your wife's true interest is known as Equity of Exoneration.
The trustee will not necessarily expect you to have heard of this so its therefore very important to bear in mind that if you write to the trustee and make an offer, and within the letter you include valid reasons, based on the answers to the above questions, the trustee will see first hand that you understand your legal position and will know he needs to work with you.
If you were to offer 50% of the current equity in the property the trustee will no doubt bite your hand off.
To support the E of E theory consider that you would not have been in receipt of a letter asking you to make an offer, but rather in receipt of a demand for £60K.
If you need professional assistance with this you need to move very quickly.
In respect of the potential forced sale, it would be very unusual for the trustee to attempt a forced sale before 10 or 11 months of your wife's bankruptcy has passed. This is essentially because you would need time to find alternative accomodation if you could not raise the funds but this delay would be largely because you have a child in the property.
To delay in the current market may be a good thing as the equity may continue to diminish by the month.
John White
England Jackman & Spacey |
