We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
How do you buy a BI in a house ?
Options

haddit
Posts: 61 Forumite
I need clarification on how you can buy the BI in your own home following discharge from BR?
I have assumed the BI is in fact the amount remaining on the mortgage ?
If so surely you would need to secure a new mortgage to do this ? Who would want to lend to you ? (especially in this climate)
Thanks Haddit
I have assumed the BI is in fact the amount remaining on the mortgage ?
If so surely you would need to secure a new mortgage to do this ? Who would want to lend to you ? (especially in this climate)
Thanks Haddit
0
Comments
-
How much is the equity at the moment?BSCno.87The only stupid question is an unasked oneLoving life as a Kernow Hippy0
-
The BI is the equity that there is in the property. You do this when the OR approaches you to sell the house. You can make him an offer, but you'll usually be able to offer lower than the equity is because if you buy the BI there are no costs for the OR, so they are open to negotiation. For example if the BI is £20k the OR might take an offer of £15K just because it's easier and less costly than having to make you move out and sell the house.
HTHAccept your past without regret, handle your present with confidence and face your future without fear0 -
Ok thanks. There is 40K equity (according to the current asking price). But if I go BR, i won't be discharged until another year. So that means there may well be less.
So does this mean, I need to get another mortgage to buy the BI ? If so who will want to lend me as I am BR? Does this mean I also keep up the existing mortgage payment in addition to the BI purchase payment r is the existing mortgage of 1190K written off?
Thanks
Haddit0 -
You may be able to get a reletive to buy the BI for you. There are some companies who will lend to discharged BR's but you may find the the % is a little higher than normal and have to do a lot of work to find it.
We don't know what the financial situation of the world will be in a years time. It might be that you have no equity, it may be that you have double the equity. If you stay put and find that near the end of your BR there is still equity and you can't afford to buy it then you could move out then and give the house to the OR or stay put untill the OR says you have to go which could be up to 3 years.
It is hard to say what life will be like this time next year with the world in melt downBSCno.87The only stupid question is an unasked oneLoving life as a Kernow Hippy0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 598.9K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards