Have house valued at £135k. Mortgage OS at £55k. Secured Loan at £22k. Secured bank Overdraft at £22k.
Am I correct that this leave equity of £36k, split 50/50 with my wife as co-owner.
Total personal equity £18k.
I understand that it is possible for co-owner to buy equity back to prevent sale of house.
My questions on this are:
1) Is the buy back option always open, or can an OR just decide at random whether or not he will offer this option.
2) Does the equity have to be bought back in a lump sum, or could this be paid of over a period of, say, a year, in manageable instalments?
3) I understand it is usually possible to stay in house for a year, but is this the norm - could OR decide to sell the house, say, a few months in and simply not entertain any buy back offers, leaving us high and dry?
Any advice and clarification on the above appreciated.
I'm convinced bankruptcy is the route but need to know exactly where I would stand as regards the house before taking the plunge - have heard so many myths! Over and above any other considerations, I would not want to lose the house.