Can house be sold without my say so?
I’ve just found out that my ex-partner was made bankrupt. We jointly own a property together that we’ve rented out since we split up and the company managing the bankruptcy is trying to sell the house. Can they do this when it’s partly mine? Is there a way to stop it?
When someone is made bankrupt – often called sequestrated in Scotland – a trustee is appointed to manage it.
Their role is to look at assets, such as property, and decide whether it would be beneficial for the creditors to sell.
If a property has equity, which means it’s worth more than the mortgage and any loans secured against it, it would usually be sold for the proceeds to be divided among all creditors. If a property is jointly owned, the trustee needs to divide the equity equally.
For example, if the property is sold and there is £30,000 remaining after the mortgage paid, £15,000 is taken by the trustee for benefit of the creditors and £15,000 would be given to you as your share.
Unfortunately, in this situation, the trustee will usually be successful in selling the property, even if they have to take legal action to do so.
There can be cases where one party believes they are due a larger share of the equity, perhaps where they paid more of the mortgage. It is possible to argue this, but you would likely need the help of a solicitor to make your case to the trustee.
It may also be possible to delay the sale if there is a good reason, for example vulnerable people living in the property.
If you really want to keep the property, there can be an option to negotiate with the trustee to buy out their interest in the property. This would mean paying off your ex-partner’s share of equity so they then have no reason to sell.
If we use the same example of £30,000 of total equity, the trustee is looking for £15,000 as their share, if you were in a position to pay then it’s very possible the trustee would accept that and leave the property alone.
If you weren’t able to pay the full sum, it might be possible to negotiate a lower figure with the trustee, which they may accept if they thought it would be beneficial to avoid legal fees.
It may also be possible for your ex-partner to have the bankruptcy recalled.
This involves repaying all debts due at the time it was awarded, plus legal interest and trustees fees and applying to the Accountant in Bankruptcy (AIB). There is a fee of £100 to be paid to the AIB also.
If successful, then the bankruptcy is recalled and your ex-partner is released from the bankruptcy and there is no further risk to the property.
Dependent on the level of debt, this would usually mean paying out a large sum of money and may not be feasible.
I’ve just moved into a new flat after splitting from my partner. It has two bedrooms as I need an extra bedroom for my daughter, who’s my carer, to stay.
She stays three to four nights per week as I need help during the night. I’m worried about the rent of £460 per month as it looks like the amount I’m going to get for housing through Universal Credit is much lower.
Amounts for the housing element of Universal Credit are based on the Local Housing Allowance (LHA) rates, meaning, as a single adult, you would be given the amount allowed for a one-bedroom property. However, there are exceptions to this rule.
One of these exceptions is that if you require overnight care, an additional bedroom is allowed, meaning your housing element should be for two bedrooms, instead of one. This would mean that your LHA amount is £448.76 per month, not the full amount of your rent, but much closer.