Are you saying the you own of the property and you intend to transfer another property to a third party for 10% of its value?
If that’s the case, then the trustee in bankruptcy, if you were made bankrupt, would simply set this aside as a transfer undervalue.
The only time a transfer undervalue cannot be set aside by a trustee in bankruptcy would be if it was transferred to an unconnected person and had been done so for 2 years or ever connected person (partner, spouse, business partner etc, had been done for 5 years.
Can I clarify anything else for you?
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I’m sorry but I don’t understand.
You say this is a different property.
If you’ve given somebody the option to buy it for £500,000, then it must be worth £500,000 unless there is a large mortgage on that one also, a £500,000 in which case, it is in nil equity and if it is in nil equity but the trustee in bankruptcy will not be interested in touching it if there is no money.
If it would only sell for £460,000 and there is a mortgage of £500,000 on it, then it is negative equity in the trustee in bankruptcy will definitely not be interested.
I am pleased to have helped.