Hi there Can someone tell me what happens in this case scenario:- partner bankrupt,I am buying his beneficial interest which hopefully will be £1+ fees due to neg equity. If I decide to go bankrupt what will happen to my equity and his that I have bought? Thanks
as you will shortly own all of the BI in the property if you should later declare bankruptcy he would be allowed to buy all of the BI from you. He being bankrupt at the time would not hinder the purchase.
In much the same way as if you both were to have declared bankruptcy at the same time he would have purchased your BI and you his.
as you will shortly own all of the BI in the property if you should later declare bankruptcy he would be allowed to buy all of the BI from you. He being bankrupt at the time would not hinder the purchase.
In much the same way as if you both were to have declared bankruptcy at the same time he would have purchased your BI and you his.
John White England Jackman & Spacey
Thankyou John - So a bankrupt can buy another bankrupts interest then? If its in negative equity are we able to buy our own BI from the OR? Thanks
you would need to buy each others due to some red tape which means if you buy back your own there will be an additional fee, known as an Ad Valorem fee, which basically means you would also have to pay 1% of the property value, a bit like stamp duty.
By buying each others BI the Ad Valorem does not apply.
thanks John Does this mean we will have to pay 2 fees? Also do you know how long it usually takes them to decide on BI as we had the letter back in Jan for husbands and sent in valuation but have yet to hear back> Thanks again
Hi thereCan someone tell me
Posted - 13 March 2009 : 21:02:35
