Beneficial Interest

PabloEscobar

Afternoon everyone.

Does anyone know how the OR would work out the amount of B.I in a property?

Or has anyone got any examples of what their B.I was set at?

I`m in the position of not owning a property, but paying the deposit to buy the house nearly 4 years ago. So, i`m trying to work out what the OR would see as a B.I figure for me to pay, if any.

All help much appriciated.

fiveyearplan

I don't understand your post. If you don't own a property what is the deposit?

PabloEscobar

Sorry, I might not have made myself clear!

The property is in my girlfriends name. Everything about the property (title deeds, utility bills etc) are all in her name only, apart from the council tax, which is in both names. Although the house is in her name, the deposit came from my account, so i`m pretty sure the OR will see that I have a B.I in the house.

I`ve not gone BR yet, but will be in the next 6 months. I`m trying to get every possibility clear in my head, which includes a likely figure I would need to pay to buy the B.I in the house, or how the OR works out the B.I figure.

I hope this is clearer

fiveyearplan

Much clearer - thanks! How much is the mortgage, how much deposit did each of you put down, how much is house worth (valued for quick sale).

PabloEscobar

The mortgage is for £65,000. Secured loan (obviously in my girlfriends name) for £4,000, so a total of £69,000. The deposit was for £23,000, back in November 2005. This money was a gift from my folks, and shows on bank statements. Current valuation for a quick sale would be around the £105,000 figure.

PabloEscobar

Quick bump, if anyone can help

debtinfo

have you paid towards the mortgage or household bills whilst you have been there or has your g/f paid towards the mortgage or household bills, also has the mortgage been interest only or repayment, what was the purchase price of the property

PabloEscobar

I`ve paid bits and bobs towards to mortgage and bills, but not consistantly, and mainly with cash. Mortgage is repayment, purchase price of the house £88k.

Cheers.

PabloEscobar

Shameless bump

debtinfo

Since the value of the house has increased then you would have a starting BI of the £23,000 you invested. As you have not been making regular payments to the mortgage/bills you could argue that the increase in value has not been through your contribution and so your BI has not increased. This would be fairly easy to argue.

The harder part would to be to arhue that since you have been efectively given free rent by your girlfriend that the amount you should have paid be deducted from your BI, but as i say they might not go for this but its worth a try

fiveyearplan

It looks like there is £40k equity in the property so half would be yours so £20. IMHO it would be difficult to argue that you don't half 50% equity in the property but good luck if you can!