Have been offered Beneficial Interest???

Angiepange

Ok im not sure what to do about this?

The OR has written to us wanting an up to date valuation and redemption statement in order to assess the value of the BI and then transfer to us or a relative or friend at an agreed price.

Now we are in Neg Equity and I have 2 estate agents coming tomorrow to provide valuations. So I am expecting it will be offered to us for £1 plus £211 costs each as stated in his letter.

BUT I am in the early stages of applying for a Mortgage Rescue Scheme called Govt Mortgage to Rent option which if successful our local Housing Assoc will buy our house and rent it back to us. IF we dont get on this scheme we will be facing re-possess whether vol or forced.

If repo happens then I think it would have been a waste of money (£424!) to buy the BI off the OR. If we are successful on the scheme Im presuming we would need to buy the BI in order for the LHA to purchase the property from us.

The OR wants a response from us (within 21 days) as to whether we are interested in buying it or not and this is the second time they have written to us. Im worried that if I say we are not interested at the moment then the BI will remain with the trustee and we may not get an oppurtunity to buy it back within the 3 years (fine if we are giving up the house, but not fine if we are selling it to our LHA???) I think its going to take quite a while to get thru the stages of this MRS scheme.

I have read my post back and im sorry if its confusing, just tried to explain my dilemma as best I can !!:o

Just wondered if anyone could help on this matter, thanks

Angie x

rog2

Angiepange wrote: »

BUT I am in the early stages of applying for a Mortgage Rescue Scheme called Govt Mortgage to Rent option which if successful our local Housing Assoc will buy our house and rent it back to us. IF we dont get on this scheme we will be facing re-possess whether vol or forced.

If repo happens then I think it would have been a waste of money (£424!) to buy the BI off the OR. If we are successful on the scheme Im presuming we would need to buy the BI in order for the LHA to purchase the property from us.

Just wondered if anyone could help on this matter, thanks

Angie x

The whole issue of BI is a minefield. Having been through it myself, I would recommend that you continue to go down the path of 'buying back your BI' as well as pursuing the housing association option that you describe.

'Repo' doesn't happen overnight and, if you are successful with the Housing Association grant, then at least you will still be living in 'your house'.

peachyprice

You shouldn't have to buy the BI to be able to sell the house to your LA, all that will happen is that they will have to get permission from the OR to proceed.

HTH

Angiepange

Thanks for replies guys

Im still not really sure what to do for the best but I think I will send back the letter to the OR to say we are interested in buying the BI for now and send them the valuations I had done the other day when I get them in the post.

I understand the letter will not commit us to purchasing the BI yet as I would have thought the OR has to see the valuations, maybe do their own research on what the house might be worth and then get back to us with a price to buy the BI which Im sure will all take time. I might know by then if things are looking hopeful on the mortgage to rent scheme?

Angie x