Beneficial Interest

neuronusmaximus

Wrong Thread

So_Sad_Angel

Hiya Neuro

Can only say what happened to me. My exOH went BR & I refused to buy his BI ...no option of selling to a relative or friend was offered so heard nothing for 18 months. Then he ( exOH) bought it back himself after discharge so that we could close the sale finally.

I would check the timescales...it might be that you can delay making the purchase of BI a while.

Are you in Scotland?...if so I`m not sure of any variations to the procedure in England.

mummytotwo_3

We are in the same position, we are going to ask or at the earliest opportunity about regaining the Bi as we have already spoken to the mortgage company about our br and said that they wouldnt want to know unless we were in arrears with them. we are one month, as we thought they would want the house anyways after they found out, so going to pay that up tomorrow and wait it out.

Angiepange

We are a couple and we went BR together in August. We were offered the BI in our home approx 2 months after BR. The OR wanted to see only 1 estate agent valuation and an up to date mortgage redemption statement from our lender which we provided.

Our house is in NE (approx £10 k) so the OR then offered the BI (priced at £1 plus legal costs £211) to us to buy back from the OR which we are doing.

We informed the lender of our BR at the time and they didnt have the slightest concern as long as the mortgage is paid.

HTH Angie x

debtinfo

Hi, just to clear up a few things, The OR will not deal with your assets any diferently depending on your perceived conduct, it does not work like that. They will always offer a family home back to the bankrupt as the rules are set up to protect the bankrupts home. The only time i have seen it not offered is where there has been a dispute over who should buy the BI and the OR hs not wanted to get involved.

The fee for a jointly owned property is £211 regardless of who is buyig the BI, it is a different amount for solely owned properties as the legal title is changing hands not just the BI

Angiepange

neuronusmaximus wrote: »

Am I correct in assuming that you are thus able to buy the beneficial interest back yourselves? Are there more costs than the £211 as I heard that the low cost conveyencing scheme for family members or friends wishing to buy the interest does not apply if you want it back yourselves?

Yep buying it back ourselves, total to pay £213.

Angie x

script

"BI, it is a different amount for solely owned properties as the legal title is changing hands not just the BI"

A quick question for debtinfo,

Just of of curiousity,

Does the title go to the person who bought the BI?

In other words do they now technically "own" the house?

Mrs_Malaprop

No the title does not go to anyone. All that BI is is the potential equity in the house. When you go bankrupt and have negative equity the OR has a right to the potential future equity to the house. He does not own the house or become responsible for paying the mortgage, he just has a right to any equity that the house may make.The OR has up to 3 years to deal with the house but most just want to clear their books and get the paperwork out of the way.

debtinfo

The legal estate does transfer to the trustee if the property is solely owned, but not if jointly owned.

31.3.11 Vesting of property

...... Where a bankrupt owns property in his/her sole name (unless it is held in trust for another), the legal estate will vest in the trustee ........ Where the property is jointly owned by the bankrupt, the legal estate will remain vested in the bankrupt and other co-owner(s) whilst the trustee will have a beneficial interest in the proceeds of sale

behind the scenes solely owned property is dealt with slightly differently than jointly owned properties in such matters as insurance and sale of the property etc because of this

debtinfo

hi, is your property solely or jointly owned

debtinfo

the normal procedure is that they will offer it to you after about 3 months. if you cannot buy it then it goes on the shelf. you can make an offer at any point. After 2 years and 3 months they will look at it again and give you another opportunity to buy it back based on what the new amount of equity. If you cannot buy it back they will look at other options. If there is only a few thousand pounds of equity in it they will put a charging order on the property, if there is a lot of equity they may apply for an order of sale. If there is no equity after 3 years then it will revert back to you automatically withut conveyance