Giving up House

davetheman

Thanks, am think worth a try with SL company as nothing to loose

davetheman

I have spoken with my father whom has agreed to help us out and make an offer to Secured Loan company. He has however asked me find out if it would be better if he bought the Beneficial Interest (we have not bought this) before any contact is made with the Secured Loan company. As he wants to be sure that should they agree, we don't want to then loose the house to the OR. I understand that he may end up paying for the Beneficial Interest and the Secured Loan company say no and then we loose the house anyway and he has paid for the Beneficial Interest for no reason.

Dates :-

Myself BR 3/3/9
Discharged 30/9/9

Wife BR 19/5/9
Discharged 19/5/10

kepar

I am not sure on this, because at the moment he would be buying the the BI of the negative equity which would remain until your wife's three year point.
But surely if a deal is agreed with the SL lender then your house would comeback into equity and the OR would have a claim on your wife's equity.

Tricky situation.

davetheman

That is our concern if a deal is agreed which could take a while to sort, but would be before May I would imagine

silvercar

May be best to delay in talks with the SL until you get the BI back for no cost.

If there is negative equity now, then the OR may allow you to buy back the BI sooner. That would cost a few hundred pounds in legal costs.

On balance I would start talks with the secured loan company and see where it gets you.

davetheman

If we start talks would they not inform the OR, can't imagine the talks would take until May when the BI goes back to my wife

silvercar

davetheman wrote: »

If we start talks would they not inform the OR, can't imagine the talks would take until May when the BI goes back to my wife

If the did inform the OR it would not be in their interests, if you walk away from the property and it is sold as a repo, they get very little - if anything.

What can they say to the OR that can make a difference?

The OR needs to start dealing with the house before the 3 years is up. Even if they thought that you had a 3rd party willing to deal with the secured loan, I'm sure that the OR would realise that the 3rd party would do this only if the BI was vested back to you. Given that it is a 3rd party that the OR has no power to control, I doubt the OR would have a problem.

Talks could easily take until May. The SL would need to do a valuation and then find out how much outstanding there is on your main mortgage. They can then realise that they stand to gain nothing but costs from repossessing and selling. At that point you make a first offer. Offer. Rejection. Consideration. Another offer. Bit of negotiation.......Quite easy to say the 3rd party is not in a position to finalise payment till May.

I would also see if the OR is prepared to start giving the BI back sooner; you certainly want to make sure it happens in May.

davetheman

silvercar wrote: »

The OR needs to start dealing with the house before the 3 years is up.
IQUOTE]

Are you saying we need to inform the OR before 3 years is up, if not it is too late?

davetheman

Should we carry on paying the mortgage and just stop the secured loan whilst dealing with this, or stop both?

silvercar

Are you saying we need to inform the OR before 3 years is up, if not it is too late?

NO. I understood the OR himself has to start dealing with the house within 3 years. Ie. by the 3 year mark he has to have started transferring the BI back to you or state that he wants the house sold to release equity or that he will sell you the BI for an amount.

Which ever option the OR takes, he needs to know the size of the equity and the value of the property. I would start looking on websites for sold prices of comparable properties in your area and put together the paperwork from your mortgage and SL to show the outstanding amounts owed. No harm in writing to the OR and say you know that he will want/ need to deal with the house by May 2012, so you have prepared the info he will need (and enclose it).