Hi
If your IVA is rejected and your only option (after careful consideration) is BR, your wife is able to purchase your Beneficial Interest. However, please don't do this before you petition for BR, rather wait for the OR to go through all your assets etc with you.
Whatever the value of the equity in your home, it may be possible to negotiate an agreement to purchase the Trustee's interest in the property. First, you will need to obtain a valuation of the property. You would be better off having a surveyor (who is FRICS or ARICS qualified) to undertake this. It may cost more - a surveyor will give an opinion of the true value of the property whereas an estate agent may give the 'hopeful' value. There is nothing stopping you from getting 2 or 3 valuations as you only need to disclose the lowest valuation to the Trustee.
You will also need to get your mortgage lender to give you an up-to-date balance on the property, together with balances from anyone else who has security on the property. If you deduct these secured balances from the value of the property, this will give you an idea of the amount of equity you are dealing with. If you are going to make an offer to the Trustee in BR, they should also allow for the reasonable costs of selling the property. If you don't reach an agreement, the Trustee will repossess the property in due course and will also need to instruct estate agents and solicitors and of course pay their fees.
For example:
Value of house £120k
Mortgage £100k
Equity £20k
As you and your wife are joint owners, on the face of it, the trustees interest in the property is worth £10k (equal shares).
Equity £20k
Less estate agents fees c2% plus VAT of £120k £2,820
Less solicitors costs £500
Total equity available to Trustee £16,680
The trustee may therefore accept 50% of this figure - £8,340. This scenario is pretty straightforward, but if there are aother issues, may I suggest you Seek Legal Advice!!!
Apologies if this is somewhat longwinded!!
Good luck
Sue
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