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Alex J.
Alex J., Solicitor
Category: Bankruptcy Law
Satisfied Customers: 3695
Experience:  Bankruptcy, liquidations, administrations, pre pack sales, re use of company names and director duties and offences.
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Hello I am bankrupt and own, did own, a couple of buy to

Resolved Question:

Hello
I am bankrupt and own, did own, a couple of buy to let properties. I am released next week.
The trustee has just said that because of costs and the property being in negative equity he has "released his interest in the property". The property is leasehold and he has indicated it goes back to the freeholder?? How is this as he won't explain any further? I do have a mortgage on it for more than the property is worth although if the freeholder got hold of it is probably it would worth a lot more to him than the mortgage?
The other property is freehold, does that mean if he "releases his interest" in this property it comes back to me?
Many thanks
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you for your question and welcome.

My name is XXXXX XXXXX I will assist you.

How much is the property worth and are you still paying the mortgage?

Have you offered to "buy" the interest from the trustee?

Kind regards

AJ
Customer: replied 3 years ago.

Property I think was valued around £150


mortgage £200


yes wanted to buy BI but there were a few problems with the property and trustees won't going to make any money and were fed up spending time on it I think, so I received papers saying that they have no interest in the property


 

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

If you are still paying for the mortgage then you have three months from the date of notice of the disclaimer to apply for a "Vesting Order" so that the property is vested into your name.

In order to do this you will almost certainly need the consent of the mortgagee to ensure they do not go ahead and exercise their right to sell the property.

Kind regards

AJ
Customer: replied 3 years ago.

Thank you. so can the freeholder apply as well? Is this why the trustee said it reverts back to the freeholder.


Yes I am paying and keeping up mortgage payments btw

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

The mortgagor has the right to exercise their power sale of.

If they do not the property would revert to the freeholder.
www.lease-advice.org/‎ If you want free advice on this and what will happen as the property reverts to the freeholder then you can contact "LEASE" which is a government service that gives free advice on this topic.

I look forward to hearing from you.

Kind regards

AJ
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