Never Really Understood...

script

One thing I’ve never really understood is the BI on the house.

What forms do you get and what are they called?

How hellish are they to fill in?

And when it’s all done – what is put on the land registry?

I thank you.

script

Sobs - I still don't understand it...

Classylady2010_2

am sorry script I dont either

Angiepange

script wrote: »

One thing I’ve never really understood is the BI on the house.

What forms do you get and what are they called?

How hellish are they to fill in?

And when it’s all done – what is put on the land registry?

I thank you.

Hi Script

We have bought the BI in our house and I can let you know how it panned out for us.

We are both BR and jointly named owners on the mortgage. our house is in NE.

We first received letters from the OR about 6 wks after our BR which were a 'Notice to interested parties of a dwelling-house falling within Section 283A of the Insolvency Act 1986' basically telling us the house forms part of the estate in BR and the trustee has up to 3 years to deal with our property or the interest in it. Also we received correspondence about the possibility of transferring the BI to us and request for an up to date valuation and up to date details of the amounts owed to creditors claiming mortgages and other charges over the property.

About 2 weeks later we each received 2 notices from the Land Registry. A 'B178 Notice of an application to register restrictions against the Land' which detailed the OR as having applied to register restrictions in the Proprietorship Register of the title. And another form 'B136(TIB) Notice of an application to register a restriction against the land' which had the same info but also noted the OR's interest due to their appointment as Trustee in each others BR. We had to sign these forms and return unless we had an objection to the application.

After supplying the OR with the valuation and mortgage redemption statement, we are now roughly 8 wks post BR we had a letter from OR telling us they had worked out the BI to be £1.00 each and we would be required to pay £211 in solicitors fees (£213) total. It took us about a further 3 wks to get the money together.

Then we heard nothing for nearly a month (xmas in the way too!) when we received a letter from the solicitors acting on behalf of the OR concerning the transfer of the BI. They enclosed a draft Deed of Assignment for us to both sign in the presence of an independent witness, which had to be returned to them so they could arrange for the OR's signature. This deed detailed our registration as joint proprietors at the Land Registry, our subsequent BR's and the OR becoming trustee, and the fact the OR had agreed to sell the BI. It also stated that in consideration of the payment by us to the OR, the OR as trustee assigns to the Purchasers all the interest and rights in or to the property now vested in the OR as trustee in BR to hold to the Purchasers absolutely.

Sorry long winded !!

About 2 weeks after that (now 5 months post BR) we received a letter from the OR's solicitors enclosing the assignment deed duly executed and completed and notice they were arranging for the restriction in favour of the OR to be removed from at the Land Registry.

2 weeks later we received a final letter from OR's solicitors confirming the restriction in favour of the OR had been removed. And they had enclosed an official copy from the Land Registry of title which confirms no restrictions.

Hope that might be of some interest.

Angie x

script

Angie - thank you so much!

xx

Angiepange

Script you are very welcome.

I might add because we are going through the Mortgage Rescue Scheme, Mortgage to Rent option, that was our reason for buying it. At the time it was offered to us, I couldnt get a definitive answer from anywhere as to whether it was necessary to buy it or not in our situation so to be on the safe side we went ahead with the purchase.

I subsequently found out it wasnt necessary for Mortgage Rescue (apparently the OR can just give his permission for the sale of your house to go ahead to your local housing assoc, you dont have to have bought the BI) but I am hoping it will facilitate the whole process.

It really is a minefield, just glad for this site and the help I have received from many on here. Thankyou.

Angie x

custard_cream_3

Before I went bankrupt, I got a couple of valuations on the house, so I knew what sort of situation I'd find myself in. According to the valuations, we were in negative equity, so I hoped it would be the case of the OR offering my wife the beneficial interest in the house, so that we could retain what was out family home. However, as the bankruptcy dragged on, and with house prices rising again, I was worried it would stop being in negative equity (which must make me quite rare). In the end though, they arranged a valuation of the house which valued it lower than we bought it for 8 years ago! Anyway, with that, we had some forms through the post for my wife to sign, pretty much like Angie says, and she sent a cheque off for the solicitor's fee and a few weeks later we had something through from the Land Registry telling us the OR had been removed from having any interest in the property.

The process itself was quite simple; it was the waiting that bugged me, but I later learnt that the house is only dealt with once any other issues had been sorted and the case handed over to the RTLU.

script

Ladies and Gentleman of the Jury,

Would I be correct is saying - that after all the paperwork, legal fees and any faffing about.

Effectively - buying the BI (apart from letting you keep the house)...

Ultimately means that the OR gets taken off the land registry.

And everything goes back to the way it was.

Case closed.

script

Coughs - ladies and gentleman - your answer please?

Yes or No

(I am knackered if you say no)

custard_cream_3

Yes it does!

script

Thank f*** for that.

Thank you again everyone!