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Beneficial Interest

When I had my interview with the OR, I asked if it was OK for a family member or friend to buy the beneficial interest. The OR said yes and that I would be sent a leaflet on the matter. The OR also told me that I would be appointed an Insolvency Practitioner, but I haven't heard anything.

Can someone please advise whether I should ask the OR/IP to send relevant forms or should I just wait for someone to contact me? Also, does anyone know how long the process takes?

I've read other threads where people have said that they got 3 valuations from estate agents, but the agents around here don't always send written valuations, so how would I get an estate agent to put something in writing without explaining that I need it to buy the beneficial interest?
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Comments

  • DON79
    DON79 Posts: 3,842 Forumite
    If there are forms needed to be filled in, then you can always ask for them so as to have them available when the time comes.

    re the valuations, the OR will tell you if they want you to get them. All you have to say to the estate agents is that you would like an estimate of value in writing with a view to a quick sale. This will give you a realistic idea of the value. After that you don't have to pursue it with the estate agents, you can always say that you decided it is not a good time to sell really.
    BSC #215/No.1 Jan 09 Club
  • Thank you - much appreciated.
  • amj_2
    amj_2 Posts: 32 Forumite
    Would a independant valuer or multiple valuers, be a better bet than an agent?

    It will cost money but agents value houses based on what they could tempt you to sign up with them than the final value anyone will pay.
    The lower the value of your property the less equity there will be for the receiver to claim I guess.
  • peachyprice
    peachyprice Posts: 22,346 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    To be honest, the OR isn't too fussy. If they think it's been vastly under valued they will pursue it, but other than they pretty much accept EA's valuations. Why spend money you don't need to, when you may end up with the same figure.
    Accept your past without regret, handle your present with confidence and face your future without fear
  • rog2
    rog2 Posts: 11,650 Forumite
    10,000 Posts Combo Breaker
    I would not worry too much, for the moment at least.
    How long is it since your OR interview?
    In my case it took about two months for a 'trustee' to be appointed.
    When the 'trustee' (IP) is appointed, he/she will write to you 'vesting' his/her interest in the house. The letter should, as it did in my case, offer the opportunity for a relative/close friend to purchase your BI. In the case of joint ownership, the first option is usually iven to the joint owner - in my case, my wife. The letter will also say that the trustee does have the 'power' to force a sale through the courts, but will only do so as a last resort.
    Then the 'fun' begins - In our case the trustee 'valued' the property based on recent property sales in the area. We were offered the opportunity to get independent evaluations, but we were quite happy to start negociations around the trustee's valuation figure.
    Please do not be afraid to negociate - trustees do not want to force a sale, especially in the current economic climate, and, generally, will not do so except as a last resort. We were able to negociate a figure approximately 20% below that initially requested by the trustee.
    Also, be prepared to be patient - ours took well over a year, in fact almost 18 months, to complete. Although my trustee had, initially, set a deadline of twelve months, he was quite okay because we kept in constant contact with him.
    Hope that reassures you a bit - good luck.
    I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
    If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.

    HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7

    DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS
  • DON79
    DON79 Posts: 3,842 Forumite
    Hi rog2, as your trustee based valuations based on last sales in the area my question is:

    The last sales in our area were over a year ago so the prices have come down lots since then in our street (about 15k or more) so would the OR take that into account or would we be better to get an independent valuation?
    BSC #215/No.1 Jan 09 Club
  • Richard_S
    Richard_S Posts: 4,432 Forumite
    DON79 wrote: »
    Hi rog2, as your trustee based valuations based on last sales in the area my question is:

    The last sales in our area were over a year ago so the prices have come down lots since then in our street (about 15k or more) so would the OR take that into account or would we be better to get an independent valuation?

    Hi Don,

    The OR/Trustee will want a valuation based on what the property would currently sell for in the prevailing market conditions. That will give you plenty of scope for negotiating the price downwards given the current "uncertainty" about the property market.

    If there's anything you can think of that would adversely affect the value of your property, as opposed to other similar houses in the vicinity, then make sure that's taken into account as well.

    Regards

    Richard
  • DON79
    DON79 Posts: 3,842 Forumite
    Richard_S wrote: »

    If there's anything you can think of that would adversely affect the value of your property, as opposed to other similar houses in the vicinity, then make sure that's taken into account as well. Oh yes! :rotfl:

    Regards

    Richard

    No central heating - Economy 7
    Aqua green bathroom suite with 1960's olive green patterned wall tiles
    1970's kitchen needing ripping out

    and the big finale!!! drum roll please...

    A roof needing new batons and tiles (rafters are ok but thats about it!)


    Will that do, do you think? :rotfl:
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  • amj_2
    amj_2 Posts: 32 Forumite
    rog2 wrote: »
    I would not worry too much, for the moment at least.
    How long is it since your OR interview?
    In my case it took about two months for a 'trustee' to be appointed.
    When the 'trustee' (IP) is appointed, he/she will write to you 'vesting' his/her interest in the house. The letter should, as it did in my case, offer the opportunity for a relative/close friend to purchase your BI. In the case of joint ownership, the first option is usually iven to the joint owner - in my case, my wife. The letter will also say that the trustee does have the 'power' to force a sale through the courts, but will only do so as a last resort.
    Then the 'fun' begins - In our case the trustee 'valued' the property based on recent property sales in the area. We were offered the opportunity to get independent evaluations, but we were quite happy to start negociations around the trustee's valuation figure.
    Please do not be afraid to negociate - trustees do not want to force a sale, especially in the current economic climate, and, generally, will not do so except as a last resort. We were able to negociate a figure approximately 20% below that initially requested by the trustee.
    Also, be prepared to be patient - ours took well over a year, in fact almost 18 months, to complete. Although my trustee had, initially, set a deadline of twelve months, he was quite okay because we kept in constant contact with him.
    Hope that reassures you a bit - good luck.


    Rog2, did you try negotiating on what percentage of the property's equity belongs to whom? Did the IP also allow for the cost of the sale being deducted from the equity also (legal fees, mortgage fees, agent fee etc) ?
  • rog2
    rog2 Posts: 11,650 Forumite
    10,000 Posts Combo Breaker
    amj wrote: »
    Rog2, did you try negotiating on what percentage of the property's equity belongs to whom? Did the IP also allow for the cost of the sale being deducted from the equity also (legal fees, mortgage fees, agent fee etc) ?

    Hi amj - we did try to say that my son had a BI in the house, but trustee was not prepared to accept this.
    Trustee, unfortunately, did not make any 'allowances' for costs, etc. In fact, from memory his letter said something like this:

    'In the event of a forced sale, I (the trustee) will take full control of the sale and will account to Mrs Rog2 on completion of the sale and after deduction of selling fees and expenses'.

    If I find his actual letter I will post the exact wording, but, basically, had my wife not purchased my BI, then the trustee would have sold the house, probably at auction and for a knock down price, charged an absolute fortune for having done so and my wife, as well as being homeless, would have received half of the nett proceeds of the sale.

    As my BI was calculated at over £80k and we were able to negociate a 'full and final' settlement figure of just over £60k with the trustee, we felt it prudent not to try and rock the boat with peripheral arguments.

    It was a drawn out process, and, after 20 years of being 'mortgage free' we are now stuck with a mortgage for the next ten years, but the monthly payment equates, more or less, to what we would have had to pay in 'rent' were we to have decided to walk away from the house.
    I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
    If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.

    HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7

    DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS
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