I would love to be able to act for you Fudge, but sadly the Official Receiver will be appointed automatically! They are very decent people, and will treat you with empathy and dignity - the other posters who have already gone through this procedure can largely vouch for this!
You will be allowed a period of one year to either raise the money to buy out the beneficial interest or make alternative living arrangements. After this time the interests of your creditors become paramount, and it is likely at that stage possession proceedings will be commenced by the Trustee.
You are correct that the equity could increase over this period, so make sure your timing is correct if you are intending to find someone able to buy the interest. And don't forget that you need to continue to pay your mortgage, or else your mortgage company will have the ability to repossess first.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
For further details contact me at
http://www.melaniegiles.com and view my IVA blog at:
http://melaniegiles.blogs.iva.co.uk