How do you buy a BI in a house ?

haddit

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

tigerfeet2006

How much is the equity at the moment?

peachyprice

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.

HTH

haddit

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

Haddit

tigerfeet2006

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 down