The part owner of partners property wishes to sell. Can creditors legally refuse sale ?

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Pauldw83

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Post by Pauldw83 » Fri Oct 17, 2014 7:53 pm
Hi
My partner has 2 years left on her iva and pays around £88 per month it was originally £105 but was dropped by the iva people. Now she half owns a property with someone else and at the time of taking out the iva the other person refused to sign any forms allowing creditors to sell the property if any large amounts of equity built up (which it hasn't) and basically wanted nothing to do with it (which is fair enough). This was 3 1/2 years ago. Roll to the present time and the other person who owns half of the property wishes to sell now. Under their original agreement which is legally binding between my partner and the other owner of the property if either person wanted to sell then the other person would be given 1st refusal to buy the other person out else it would have to go on the market at the current market value. Having just informed the iva people that the property is going to go onto the market, they are saying that the creditors could refuse to let the property be sold if they chose to as they have some control over the land registry. So basically my question is, given the unusual circumstances over the property can the creditors legally refuse to let the property be sold even though it is the owner who owns half of the property wanting to sell and that there are separate legal documents stating either person can sell if they wish too.
hope the above makes sense, and thanks for your time
paul
 
 

Foggy

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Post by Foggy » Fri Oct 17, 2014 8:14 pm
They cannot refuse to allow a sale. They have placed an RX1 restriction which means they will be notified if a sale progresses so they can claim the monies towards the debt in the IVA.

Any potential purchaser will become aware of this restriction and want it removed on sale.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Pauldw83

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Post by Pauldw83 » Fri Oct 17, 2014 10:11 pm
Hi Foggy
thanks for the quick reply.
The rx1 restriction does this get removed easily then or can it slow down the selling process ? my partner has informed them that the property is going on the market and an estimate of any potential money she would receive from the sale.
Also when the original mortgage was taken out there was also a loan taken in conjunction with mortgage by the other person for the amount of £19,000.00 (this was about 7 years ago) and because it was tied with the mortgage had my partners name tied to it in some way but she had no responsibility for it, although she was never responsible for any payments as it wasn't her loan when she took the iva out they made her have to add that loan to her debts (at the time it was down to £15,000.00) since then the other person has still been paying off the loan with no defaults and when the property is sold the loan will be getting transferred into her name only. So obviously the creditors want to get as much as possible from any money made from the sale but does my partner have any grounds to say hang on a minute you've stuck £15k on to my debts thats always been paid by someone else and will be getting the whole loan paid back by the other person and won't even be in my partners name anymore (i mean technically the creditor for that loan is getting the loan paid off as it always has been and then trying to get the money again from my partner that doesn't seem right).
thanks for your help
paul
 
 

Michael Peoples

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Post by Michael Peoples » Sat Oct 18, 2014 2:03 am
You need to look at the proposal and see how the property was addressed. The RX1 is not valid unless both parties sign it so perhaps the property was excluded. That is what we normally do when there are issues.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
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If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

Pauldw83

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Post by Pauldw83 » Sat Oct 18, 2014 8:28 am
hi
thanks for your reply..i will check. How about the separate loan she was forced to take on this seems a bit unfair that a creditor will be getting their money twice?
 
 

Foggy

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Post by Foggy » Sat Oct 18, 2014 9:43 am
Re. the joint loan: The creditor will only be entitled to a pro-rata dividend on the outstanding balance of the loan, not on the whole amount. They will not be getting repaid twice.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Michael Peoples

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Post by Michael Peoples » Sat Oct 18, 2014 11:03 am
If there is sufficient equity to clear all the debts in full including the joint loan then that is what will happen. Your partner will then have to try and recover the money from the other party. Unfortunately she signed for the debt so she is liable to repay it.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

Pauldw83

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Post by Pauldw83 » Sat Oct 18, 2014 11:42 am
ok thanks for the replies seems a bit of a con regarding the loan.
It turns out it looks like no RX1 was signed at all, so do i take it we don't technically have to inform the creditors about the sale nor do they have any control over the actual sale of the property? Although we have told the IP about it going on the market and there will definitely not be enough equity to pay any full amount off, but possibly able to pay a little more then if she was to just continue with the monthly payments.
thanks for your input its very helpful.
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