Can any one explain the buying beneficial interest process to me please?

keepmyhouse

I have briefly looked into it, and understand if there is no equity a friend can buy it for £1 to prevent a later sale.

Its the mortgage bit I dont get, surley my mortgage company have to give permission? My conveyancer said my brother would have to go on the mortage??????? What??? Who in their right mind would put there name to a debt for nowt, especially with a BR?

peachyprice

Your conveyancer is wrong. Buying the BI has nothing to do with the mortgage or who own the house. All your brother is buying is the rights to any future equity. For example, if you are in negative equity and your brother buys the BI from the OR for £1 and in say 10 years time you sell the house at a profit that profit would legally belong to your brother.

You can buy the BI back off of your brother at any time after discharge using your own solicitor.

In the meantime you continue to pay the mortgage as normal and it has nothing to do with your brother and you don't need to get permission from your mortgage co.

Hope this makes it a little clearer.

SunshineGal_2

Does it have to be a third party who buys the home for £1? I'm in the same boat, i.e. in negative equity, and have been led to believe I can purchase my home myself for £1.

JPS29

Bear in mind the price for buying BI in negative equity is not just £1. Its £1 plus fees, I think the full amiunt is about £212 but somoeone more knowledgeable than me will no doubt post the correct amount.

HTH

SunshineGal_2

InTheBrownStuff wrote: »

Bear in mind the price for buying BI in negative equity is not just £1. Its £1 plus fees, I think the full amiunt is about £212 but somoeone more knowledgeable than me will no doubt post the correct amount.

HTH

I've just had the confirmation through and it's £474 in total. The most farcical aspect of it, though, is that they demand a cheque! From a bankrupt!

custard_cream_3

But it's not the bankrupt paying it...it's the 3rd party who is buying the interest.

SunshineGal_2

custard_cream wrote: »

But it's not the bankrupt paying it...it's the 3rd party who is buying the interest.

No, you can buy it yourself:

"Can I buy the beneficial interest if I am sole owner of the property?
It is possible for the Official Receiver or other trustee to transfer the beneficial interest and legal title to you, your husband, wife, partner, a relative or friend but the transaction is more complicated."

http://www.insolvencyhelpline.co.uk/bankruptcy/what-will-happen-to-my-home.php