question re benificial interest

miaoww

Hi guys
Have had several of these letters from the insolvancy service regarding benificial interest on the house - currently we cannot afford the fees for this and house is in negatove equity anyway.
What long term effects would my husband or relative not buying it have?
theres something about that it wont be transfered back after end of bankrupsy in 3 years.
would be grateful if someone can shed some light on this for me
cheers

davies665

hi
i have just gone BR and this is an issue i have been most concerned about and i have looked into this in some detail.

Basically i would advise that if they are offering it to you you should bite their hand off and take it!

This will protect you from being forced to sell the property if the market turns around within the 3 yr time frame and your property suddenly becomes a viable asset that your creditors can claim against

If your husband buys the interest in the negiative equity ( which i think costs £1 plus coveyencing fees of £477) your creditors will not be able to touch it and your home will be safe.

davetheman

I was advised that you can so no now and then purchase later if you see the market starting to pick up

debtinfo

you can purchase at any point up to 3 years but it will be at the latest price, it really all depends on how much negative equity there is as you don't want to get caught out

Flowerpot_2

My OH had his F2F interview today & his OR spoke at length about the BI. As we're both BR & the house is in neg.equity (or near as damn it) we'll be offered the opportunity to buy the BI for £1 each plus fees - (at some point that is - she said this could take a while).
However, she then went on to explain that we still must continue to pay the mortgage as otherwise we would be in default & could be re-possessed - buying the BI in the house DID NOT mean the house belonged to us! When OH expressed amazement she said in her experience this had actually happened not once but on many occasions!
So, I thought I'd pass it on :rolleyes:
FP x

stanley38

no flowerpot the house belongs to the mortgage company/trustee.

Flowerpot_2

Hi Stanley - sorry I didn't explain that very well!
The OR explained that (many) people mis-understand the BI issue & think once they've bought the BI in the property they've actually bought the property - as it were -& therefore they default on the mortgage & (presumably) the house is re-possessed. My OH was suitably gob-smacked but the OR said this has happened on many occasions in her experience :eek:
Which is a worrying thought eh?
FP x

fiveyearplan

You need to think long and hard about the BI. If you can't afford it now then don't worry but try and save the fees and do so when you are able. Who knows what the property will be worth in 3 years time - I haven't bought the BI in my home and have 20 months left to 'wait out'!

longshot

flowerpot - i can't believe people would think they own the house
after buying the BI.?

out of interest are you allowed to miss 3 payments before they
try and repossess the property if you own the BI too?

or is it just one payment?

fiveyearplan

Repossession will be under the same terms whether you have the BI or not. The mortgage company won't be bothered who has the BI as your name is on the mortgage - that doesn't change.

miaoww

Hi guys,
thanks for the advise didnt realise that if we said no now we could still buy in the future - panicing about christmas for the kids and ds birthday as havent managed to save anything (bit materialistic I know) so will leave it for now any who knows if we get some bank charges back will buy it then or try and save beginning of next year. Do you pay to have valuations aswel or do they sort this out?