I bought the interest in my property for £1.00 - need help

[Lynne1000]

Hello all,

Some advice please - My partner and I bought a property in 2003 and both our names are on the mortgage. In 2008 he declared himself bankrupt and I bought his interest in the property, via the receiver, for £1.00. We are now separating and will likely be looking to sell in the not too distant future. Could anyone tell me how I stand with regard to giving him any "profit" from the sale?

I must also say that, although the mortgage is in joint names, my contributions to it have been far greater than his and I paid the whole of the deposit at the time of purchase,

Any advice would be appreciated.

Many thanks

[Openlaw15]

Re: I bought the interest in my property for £1.00 - need help

Hello all,

Some advice please - My partner and I bought a property in 2003 and both our names are on the mortgage. In 2008 he declared himself bankrupt and I bought his interest in the property, via the receiver, for £1.00. We are now separating and will likely be looking to sell in the not too distant future. Could anyone tell me how I stand with regard to giving him any "profit" from the sale?

I must also say that, although the mortgage is in joint names, my contributions to it have been far greater than his and I paid the whole of the deposit at the time of purchase,

Any advice would be appreciated.

Many thanks

Hello Lynne

This is a very interesting question and may not have a simple answer. Technically, you purchased his share - that is his beneficial interest for a £1. I assume the property had no equity, right? However, he will argue it was mere just a nominal interest transaction for a £1. A nominal interest in your circumstances means at the least a transaction at an under-value, or putting it another way if there were no value in the beneficial interest it would simply be a gift, so rather the law provides a £1 value to keep it from being a gift and therefore making it legal. His other defence would be it was only the beneficial interest and not his legal interest (actual title ownership) in the property being sold based on his name on the property's deeds; so in his view the legal interest defeats the beneficial interest.

[Lynne1000]

Re: I bought the interest in my property for £1.00 - need help

Thank you openlaw. It's a very interesting answer!
there was no equity at the time of his bankruptcy but there is now. It looks then, as it probably isn't worth getting into a battle over it?