I own four properties two jointly with my husband and two in my own name. There is no equity in any of them due to the current market conditions,and two break even with the secured loans and the other two have negative equity. The two which break even bring in an income after the mortgage payments. I have been told that if I make myself bankrupt I will be able to keep these propeties and get a third party to buy my interest in them if there is no equity in them. I have big decisions to make and this seems a strange scenario. I need to go into this with all the facts.
technically you are able to purchase "beneficial interest" in your residential property during bankruptcy for a fee. This is either the equity or when there is negative equity then the OR will value this at £1 plus legals.
as your other properties are investment properties they may be viewed in a different way and if you chose to keep them the OR may place a restriction on them . Additionally you would find that any income after the mortgages were paid ( on the investment properties) would probably be claimes by the OR.
It is a complicated area and I would recommend you take careful advice on the matter form an expert
I own four properties two jointly with my husband
Posted - 17 May 2009 : 22:12:55
