Please Help with beneficial interest question!

brokeinbristol

Thanks Peachy, I guess we're just worried that if they say yes to putting a CO o the property, then when we do come to sell, there may be a lot more than £5,554 of equity, especially as we are still paying our mortgage (capital payment) each month and it will all then go to the OR and give us nothing to buy a better property with. That's a point...should we be switching to interest only repayments after AD? If we switch now the OR will put a IPA on us.

debtinfo

firstly an apology to peachy as i am about to contridict her.

They dont put charging orders on in the middle of the 3 years, only towards the end, A charging order is a last resort where it is not worth the cost of repossessing but they are about to lose all claim because of the 3 year rule. IE it is not something they want to do as they may not get their money for many years.

To broke, the chargng order is for a fixed amount (plus statutory interest) and it is based on the equity available at the time of the charging order at the ane of the 3 years, ie it wont keep rising and you may still accrue new equity

peachyprice

Yes, debt, that's how I thought it would work.

It was more the idea that if they think a BR is happy to have a CO they might accept a lesser cash offer now rather than apply the CO at the end of the 3 years, iyswim.

At the moment they think they're making Broke believe that it's £5,554 or lose the house through a forced sale.

Esoog

argh double post!

Esoog

brokeinbristol wrote: »

Thanks Peachy, I guess we're just worried that if they say yes to putting a CO o the property, then when we do come to sell, there may be a lot more than £5,554 of equity, especially as we are still paying our mortgage (capital payment) each month and it will all then go to the OR and give us nothing to buy a better property with. That's a point...should we be switching to interest only repayments after AD? If we switch now the OR will put a IPA on us.

For those in the know, is this a valid idea? Can you switch to interest only so your mortgage isn't going down?

Ps, broke how long did it take you to get a reply after you sent them the valuations etc?

PigSick_2

I think you've already covered it with the 3 estate agents valuations. Our OR wrote to us the other day stating if we wanted to buy the beneficial interest we could either have the house valued by a surveyor or if we couldn't afford it 3 estate agents valuations. How they expect us bankrupt people to afford these fees is beyond me (duhh bankrupt = no money!)

brokeinbristol wrote: »

My husband & I went BR in Jan, had the house valued just B4 we did: £120,000 from x3 estate agents. Post BR we were asked by OR to provide a valuation & current mortgage statement, so we asked x2 estate agents for a quick sale price: £115,000 and £116,000, our mortgage being £116,500 at the mo. Obviously hoping that this would put us in neg equity. However letter this Am from RTLU (now dealing with the house), saying that there is a £15,000 difference between our valuation and the OR valuation(s)! Where do they get these figures from?! So now wants us to get a chartered surveyor's valuation for him to establish how much equity there is. Sorry to ask stupid questions, but how much is one of these going to cost us? Where do we look for a reputable one? How do they value the house? i.e. do they look round, take into consideration the financial current climate? & lastly should we tell the surveyors what it's for and therefore make sure they don't over-value it or will there valuation be an exact one? i.e can they be swayed on the valuation they give? Any help gratefully appreciated!

sfjnet

PigSick wrote: »

I think you've already covered it with the 3 estate agents valuations. Our OR wrote to us the other day stating if we wanted to buy the beneficial interest we could either have the house valued by a surveyor or if we couldn't afford it 3 estate agents valuations. How they expect us bankrupt people to afford these fees is beyond me (duhh bankrupt = no money!)

Yeah, that's true, but you may find that stumping up the money somehow for a surveyor's valuation may be worth it in the long run. They will normally come in lower than an estate agent's valuation, plus the surveyor may be sympathetic to your plight and keep the value as low as possible. Personal experience shows that if you ask estate agents round for a "quick sale" valuation they will still quote as high as possible in an attempt to get your business. Of course if you are in massive negative equity then it's not an issue, but our place was valued as worth about dead on the mortgage amount by the surveyor, but with up to £15K equity by the estate agents! All of that said however, I am still waiting to speak to the OR about my BI so I can't tell you that it all ended happily because I paid for a survey.

Good luck whatever you decide!

brokeinbristol

Esoog, just to let you know, after each offer sent so far, we've phoned them a week later and then a letter has appeared a couple of days after that. However, I did just ask on another thread whether there was a set time the RTLU/OR has to work to in replying/accepting/declining offers made. My feeling is their responses would have been a lot slower had we have not phoned asking for a reply. Our latest offer made a 10 days ago (approx) has not been responded to yet; we are away next week and I told them this in our latest letter. When I rang yesterday, he said they haven't discussed the latest offer yet, and I'll prob get something when I get back from hols. Like everyone we want this sorted ASAP and we will have to get new valuations/mortgage statements in June if an offer hasn't been agreed upon (we can't afford £200 for another surveyor valuation!). Starting to get really annoyed that although they don't give a toss that we may have to pay out for this,our mortgage will be lower having paid capital repayments for the last few months and therefore our BI figure will then be much higher, changing the goal posts again, basically putting us back to square 1! Do these people have any compassion?! We have been trying so hard to offer something that's reasonable and affordable.....deep breath...rant over...sorry.

Esoog

They're probably doing it on purpose hoping that it goes up

brokeinbristol

Well after nearly 2 weeks since our last offer £3,225 for an estimated equity of £5,545 I called the RTLU for the second time. Offer has been rejected...great!! On expressing how this was turning into a 'guess what figure the OR has in his head for the BI' game, his PA person laughed and then said if you offered £4,000 + £211 costs the OR would accept it. Now we have until June 30th for an offer to be accepted and payment made or else they want another surveyors valuation etc....not going to happen basically. So question is.....do we just cave in and offer whole £4,000 + costs and be done with it, or do we call their bluff and offer say £3,500 or £3,750 + costs...... Please help?!