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carl
Junior Member
115 Posts |
 Posted - 18 July 2011 : 11:31:11
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Hello Forum
I’m hoping one of the experts might be on hand to help me with a question I have relating to my property after A.D. I am 6weeks of A.D now and I had my circumstances reviewed by the O.R in April/May and they have not given me and IPA/IPO. Fingers crossed I can get through the next 6weeks without any problems.
I’m currently living in and paying mortgage and secured loan on my property. The combined mortgage and loan is approx £92,000.00 and the house is worth approximately £75,000.00.
I understand that the OR will deal with my property at the 2yrs 3month point of my BR and if the rules stay as they are and there is no change in property prices then there will be a good chance the property will get transferred back into my name at this point by the OR due to the amount of negative equity it is in.
The reason I’m asking this question is that my partner has talked about us moving in together later this year and the idea would be to move in to her property because its larger etc. My Questions are as follows:-
1) After my A.D and as long as I’m not subject to an IPA/IPO what would happen if I decided to rent out the property until the OR has dealt with my property? It was always my intention to try and keep the property because from reading other posts I believe it can be hard to obtain a mortgage after A.D and I believe it is also a way of slowly trying to rebuild my credit score. It would also act as a safety net should my new relationship not last!!
2) I haven’t yet spoken to my mortgage company so I’m not sure if there is any legal rules from preventing me from doing this in the terms and conditions of my mortgage and secured loan etc. I was kind of hoping that they would be happy as long as my mortgage payment and secured loan payments are met. If anyone has any knowledge of this area I would be grateful for any information that you may have.
3) What do I need to do if I decide to hand the key back to the OR and give up the property so any shortfall came be included in my BR? Is there anything I must do or make sure that I don’t do?
Thank you all
Carl
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 18 July 2011 : 15:59:30
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Hi Carl,
regarding the points you raised:
1) I'm not too sure about this post bankruptcy, but, as the property (title and BI for solely owned, BI only for jointly owned) vests with the trustee for 3 years, I assume that if you then rented it out it would be classed as a BTL, meaning that the property would not re vest after 3 years, (or 2years 3 months as the case may be), but again not to sure, as it's a situation I didn't deal with
2) As you say there is nothing to stop you renting out having originally obtained a residential mortgage, but if you rent it out without their permission and they subsequently discover it, then they could begin repossession proceedings without giving the tenant proper notice under the Protection of tenants(mortgages) act 2010, so if you are going to rent out, inform the mortgagee, but as the OR is trustee the mortgagee will have to inform them anyway.
3. If you do hand the keys back in then read this link before you do:
http://www.debtwizard.com/blog/general/617-repossessed-borrowers-sign-a-deed-of-acknowledgement-at-your-peril
Hope this is of help!
Big Al
Insolvency examiner with the Insolvency service from April 2008 - July 2010.
If you need help completing SOA's(statement of affairs) or PIQ's(preliminary information questionnaire) if you've been declared bankrupt, or anything else and you're within 30 miles or so of Warrington, then please contact me via my contact details in the expert page for futher details"
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Property after A.D
