Please Help with beneficial interest question!

lilibet1

Thanks Angie x

brokeinbristol

Peachy may know the answer to this, but can you set the amount the charging order is for and set it now? Am I right in saying we have 1 year grace period as we have a family in the home and then after 3 years if we do not buy the BI back the Or will either force a sale to get the equity in it at that time or put a charging order on the property, so that when we do sell it in the future they get the equity? Is that a set amount of equity? Or just however much there is when we sell? I guess what I'm trying to ascertain is if there is any chance we could get them to agree a set £4,000 say as a charging order so that when we did sell that's how much they would get then? Does it work like that? Arrghhh...think I've confused myself?

debtinfo

Hi broke, a disclaimer first, this is what usually happens but does not legally happen if it gets transfereed to a seperate trustee.

If the equity is less than £10,000 and you cannot buy it then what usually happens is the OR sends the case to RTLU and they just sit on it until the 3 year period is nearly up. At that time they llok at it again, if still less than £10,000 equity they go for charge on the property, if more than £10,000 they go for a sale.

As i say this is not written in law but it is the standard OR protocol

peachyprice

Not sure about the amount of equity the charge would be for Broke, but I would imagine it would have to be whatever the equity was at the end of the 3 year period, otherwise you would never own the house as once the mortgage was fully paid off the OR would be entitled to 100% of it, so logically it must be either a set amount or a set percentage based on current value, hopefully someone can confirm this?


I've had a thought on this subject. Bear with me

If the OR beleives there is more equity than you do and will not back down and wants to force a sale, is it possible to put the house on the market, at the price the OR thinks it's worth, then when you get no offers obviously you would have to drop the price to a realstic level. Would this process be enough proof that the OR is over valuing the property and to convince a judge that there is not enough equity for a forced sale?

After all we all know what you have a house up for sale at and the price you actually get can differ vastly.

debtinfo

yep peachy, the charge amount would be set at the value of the equity at the end of the three year period

out_of_cash

I thought there was something in the insolvency legal hand book so to speak that mentions the OR are not allowed to play a rising market equity waiting game.?

then if they wait upto a 3yr dead line, is this when they come alive and start doing their job, i thought they had an obligation to get a sale before the 3yr dead line that would mean sale deeds transfer etc i would like to see them do this that quick say 3mths before the 3yr period is up as i am sure if its going to make someone homeless a judge wouldnt be to keen to award that as we are going to end up with half the uk sleeping under a bridge going by the last 5yrs insolvency figures which are climbing. its my experience so far they are moving like a snail when it comes to dealing with equity.

debtinfo

They dont play a waiting game, they offer the BI at the first opportunity, if the bankrupt cannot afford to buy it then it goes on the back burner, if the bankrupt wants to buy it and can afford to do so then they do it as soon as possible

brokeinbristol

Thanks to everyone for your comments, we will keep you updated when we see how our latest offer goes down with the OR?! Debt Info do you think we are wasting our time increasing our offer by £250? Will the OR actually sell us the BI for less than the £5,554 equity they reckon is in the property? Or will they hold out until we offer the full amount? Are they just stringing us along until we offer the full amount? I have spoken to someone in the RTLU to try and ask how much may be accepted, but they said they cannot comment on it.

debtinfo

I cant really say what they will accept as each OR is different. The overiding principle is that they should get the best possible price for an asset within reason. They certainly can accept a lower offer if they do not think they will get a better one, whether they will or not is down to them, I know that doesent help alot, but it is as if you were buying someone elses property in the normal market they have the property and so they can wait to see if a better offer coes along, To be fair they will nearly always accept the offer if it is for the actual worth of the property

peachyprice

Perhaps when you offer you should say to them that if it isn't acceptable you'll be happy for them to put a CO on the property, that might just sway them into accepting your offer, as they'll then be able to close your case.

Yours wouldn't be the first OR we've had here who haven't mentioned the option of a CO, they tend to keep quite about it hoping you'll come up with the cash rather than be forced to sell.