Hi, I am new to mumsnet, but hoping I can get some advice on the situation we find ourselves in. I will try to explain as much as possible, however the situation is quite complicated and any advice would be appreciated!
DH bought the property we live in around 10 years ago, he then met his now ex wife and put her on the mortgage. They were together for a few years and then divorced due to ex wifes infidelity. DH had his own business and his ex wife did not work, they have no DC together. DH's business failed around the time they split and he fell into arrears with the mortgage. After they had divorced DH was told by the mortgage company he could not have her removed from the mortgage as it was in arrears (he is slowly paying the arrears off and has an agreement with the lender).
Then his ex went bankrupt, this was just under 3 years ago. The insolvency service have known she was joint owner of the property for this time. Now they want to apply for a charging order on the property where me and DH now live with DS. The charging order is for £1340, which is what they have calculated her beneficial interest to be. DH has submitted paperwork to them proving that she never paid a penny towards the mortgage both while they were together and after she left the property to set up home with another man. The insolvency people have deducted 50% of the mortgage payments that he has made since she left as she should have been liable for this, from her half of the equity. Although this is only half of the payments made minus the interest, which they are not including as they say the occupational rent cancels out the interest paid in the mortgage payments. (hope this is making sense this far!)
So the beneficial interest they have calculated, taking into account deductions for payments made by DH and occupational rent and selling fees is £1340. However (and this is mainly where we need some advice) the insolvency service have based this on the property having a value of £128,333. We have provided 2 estate agents valuations which state the sale price of the property would be £125,000. If the insolvency service were to accept this valuation, then Ex would have no beneficial interest in the property. However they are stating the value is £128,333 as one of the valuations suggested an asking price of £130,000 (still with a view to accept £125000) they have taken the average of these figures, as well as the value a similar house which sold recently, our argument is that both estate agents stated that the sale price would be £125000 and that they shouldn't be taking into account the sold price of another property that could have been in better condition than ours (ours is in need of a new kitchen and bathroom), and so the value should be £125,000.
They will not accept this and will only change the valuation if we provide a chartered surveyors valuation. DH is reluctant to do this as we cant really afford it, especially with Christmas on the way, but I don't really see another option.
We have argued that there should be no occupational rent charged as it was ex's decision to leave the property, so she could have returned and had use of the property up until divorce proceedings were issued, but again they have dismissed this.
If this does go to court, what would be assessed as the value of the house? Is the insolvency service responsible for providing a professional valuation? Does anyone have any advice re. occupational rent?
Also would they be able to force sale of the house?
Sorry if this has just been a long ramble, if anyone would like anything clarifying please let me know. DH received a letter this morning saying they were applying for the charging order so we are getting worried.
TIA for any advice.