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gpm
Starting Member
16 Posts |
 Posted - 24 January 2009 : 16:39:38
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Good Morning, I am presently looking at going BR asap. My question is i live in a property my wife owns, i have never been on the mortgage, but have lived here when she bought it.
Her wages do not cover the mortgage and bills since we had our first child who is now 3 years old.
If i put in the I&E the mortgage or a rent payment, how will this effect them going after the property? The property has been valued and has 5000 equity, but my wife paid 1500 deposit gifted by her parents, so this would only leave 3500 equity. could this be a problem?
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John
New Member
United Kingdom
73 Posts |
Posted - 24 January 2009 : 17:29:25
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Hi
this is a complex issue. As you have been making contributions to the mortgage/utilities etc then it can be argued that you have a proprietary interest.
That said there is only £5K equity according to the valuation.
The obvious question is when and by whom was the valuation carried out? The reason being if you can justifiably list the value £5K lower then all of the other aspects of who owns what are much less of an issue.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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gpm
Starting Member
16 Posts |
Posted - 25 January 2009 : 07:24:19
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Hi John,
The valuation was done by a local estate agent last November, we asked for a forced sale valuation. Would this one valuation be enough for the OR, i dont see the property increasing in value. |
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John
New Member
United Kingdom
73 Posts |
Posted - 25 January 2009 : 08:55:03
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Hi
certainly in the current climate it's unlikely the property will increase in value.
The problem is how accurate is an estate agents valuation.
I know it's difficult when money is tight but it would be a much stronger arguement if you had a surveyor's valuation, based on a 90 day sale.
Surveyor's have a responsibility not to over value properties. At the beginning of the crunch many were taken to task by the courts because they had been over generous when carrying out mortgage valuations. As a result they now err on the side of caution which means they tend to down value which is what you need.
An estate agent has no such responsibility.
It could well be a few hundred pounds well invested by doing this if it proves your property to be in negative equity. There would be no arguments with the OR on this issue and the property would be safe.
I should have mentioned that if the property is eventually deemed to have more than £1K equity the OR is duty bound to investigate your potential interest in it.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
Edited by - John on 25 January 2009 08:58:52 |
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movin on
Average Member
United Kingdom
946 Posts |
Posted - 25 January 2009 : 19:58:56
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Hi GPM and welcome to the site
I also think it could be worth getting a surveyor to do it, Allied have been mentioned here a number of times.
Also i should imagine it will certainly of come down in value since your last valuation.
Good luck
Jenny
xx
Onwards and Upwards is the way im going :-0)
From "Moneyworries" to "Movin On" in 3 months is fantastic :-))
xx |
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gpm
Starting Member
16 Posts |
Posted - 25 January 2009 : 22:12:16
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Hi,
I quite sure you correct that it would be unlikely the property would be worth more, although i did keep the estate agent to value it as a forced sale.
Thank for you advise, and this site has been a massive help, keep the great work
Many Thanks
Gary |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 26 January 2009 : 13:01:36
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Best of luck Gary!
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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Topic |
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I am presently looking at going BR
