My ex husband went bankrupt a few years ago, i was contacted by the insolvency service to be asked whether i could buy the beneficial interest, but was in no position to do so. I am living in the marital home, jointly mortgaged, with my 3 children, two of whom are disabled, as i was not in the position to buy my ex husbands share of the property, the debt is now charged to the property. Even though no legal proceedings for repossession have taken place, most likely due to negative equity. I am very worried about the future, my sons are needing adaptations to the house and this will involve building an extension, funded by a disabled facilities grant. I am not in a position to relocate as i am not employed and cannot possibly afford a bigger mortgage.
would you please advise what happens when charges are fixed to a home, and what i can expect
whether it would be advisable to have the adaptations, which are detrimental for the boys needs.
I’m very stuck please help
If you read the Insolvency Services “What will happen to my home” leaflet it may answer your question; http://www.bis.gov.uk/assets/insolvency/docs/publication-word/what-will-happen-to-my-home.doc
However I would suggest that you take the letters and information you have received to your local Citizens Advice Bureau, or contact a solicitor, to see if there is actually a charge or restriction on the property.
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The charge placed against the property will be against your ex-partners beneficial interest in the property. Overtime the charge may accrue interest and increase if it is not repaid, however if the property were to be sold in the future then the charge will get repaid to the Official Receiver from your ex-partners share of any equity contained within the property at the time of sale.
As long as full payments are maintained to the mortgage it is unlikely that the property will be repossessed. Also an agreement can be made between you and your ex-partner preventing the property from being sold before your youngest child reaches the age of 18, but this would require legal advice.
This question has been answered by CAP UK, a leading debt charity offering hope and a solution to anyone in debt.