Do I tell the OR we are going to let repossession happen?

Legacy_user

I've had a letter from our friends at the IS about BI in my property and that if I want to buy it, I need to get a new valuation etc etc.

At the end of the letter is a *delete as applicable* section in which I've declard I am NOT interested in the Beneficial Interest.

In fact, our intention is the let the mortgage company repossess. We are now over two monthd behind with payments and I am expecting proceedings to start after the third.

This is just a simple question really - do I bother to tell the OR this or am I best just letting it all happen?

sundays

They are asking most do they want to to buy it back, id just send it back saying no, most arn not due to high neg equity and it will revert back to them after the three years. I wouldnt tell them you are waiting repossession. its not that straightforward, the mortage company will have to demonstrate they have done all they can before the judge rubber stamps it. They have to follow a mortage protocal, shelters web site will tell you if non payment is the case what they must have considered before taking court action. Even if you didnt turn up at the hearing would prob mean they would adjern.

A lot of lenders are taking their time and some wont start proceeding for at least 6 months maybe even longer. You could be in discharged terriority when it does get taken back and prob will be.

why do want to be repossessed because rentals are going through the roof, and agents are likley to turn you down as a BR.
I have known lenders drop intrest to virtually nothing before taking action, ive also seen a repossession b ut no action for 18 months as lender wouldnt send it the baliff, even if you do get a repossession, you only leave when the warrant has been issued for baliff action.

System

I have no wish to keep the place, simples.

We hate living here and there is no realistic chance of selling. The walls are thin so we hear everything from our neighbours below and to the side, so much so it's been affecting my health for some years now. I cannot relax here and I pretty much live in the office room (I work from home too, which doesn't help). The lease needs renewing and will cost at least £16k to sort out - this would need to be done before we could sell.

All of this plus that fact we'd have to find another huge chunk of money to buy the BI means it's a no-brainer for us.

For what I'm paying on the mortgage (can only stay on SVR due to bankruptcy) we could be renting a 3-bed semi with a garden instead of this 2-bed cardboard pit.

sundays

People are only buying the BI back normally because they want to remain and may not have a great deal of neg equity and dont want to be in a postion to have to repay more than the 1k to the OR, im happy in my house and will remain, but my neg equity wont decrease enough to bother buyin g it back, it also gets the OR intrest out of the way in the event of death etc.


What is SVR.

Start saving for the move and deposit , id be looking at putting a min of 6 months away in case a agent wants a lump sum as a BR. Agents will let to a BR but will often insist on the full tenure being paid in advance the min is normally 6 months the average is 12 months tenures.
But look at private as well.

Remember there is no security of renting and try and rent from a long standing landlord, you dont want to be asked to leave as soon as you have more or less moved in, i say that as many homeowners are letting out their properties because of their own financial struggles etc as short term measures etc.


Also get your name on the housing list, building time is the main thing , even if you are bottom of the heap at prescent.

System

There's insecurity in buying too. Extending the lease was about £3k when I bought the place in 2002. Original landowner dies, son takes over and whooop - now it's £16k. Thanks very much!

The place has been an albatross around my neck for years and I just want rid of it. This is the perfect opportunity to do that as the shortfall after repossession will fall into the BR.

We'll deal with renting difficulties as they arise, I don't care. Nothing is insurmountable. Anything to be out of here.

Ineedaname

SVR = Standard Variable Rate, as in the lender's standard interest rate for mortgages.

sundays wrote: »

Also get your name on the housing list, building time is the main thing , even if you are bottom of the heap at prescent.

Housing lists no longer work on 'moving up the list' over time. It's all about points. If you have the highest number of points out of all those who bid on a property, it's yours. So if you have the lowest number of points you could be on the list for 20 years and still not able to move into social housing.

Eviction for repossession will add points though, as will health problems, so it's worth having a chat with the local authority nearer the time.

Messedupmoney - to answer your original question. I would just send back saying you're not interested in buying back the BI at the present time. The OR doesn't need to know you intend letting the property be repossessed as there's no action for them to take until it actually happens.

System

OK, thanks guys.

sundays

Ineedaname wrote: »

SVR = Standard Variable Rate, as in the lender's standard interest rate for mortgages.



Housing lists no longer work on 'moving up the list' over time. It's all about points. If you have the highest number of points out of all those who bid on a property, it's yours. So if you have the lowest number of points you could be on the list for 20 years and still not able to move into social housing.

Eviction for repossession will add points though, as will health problems, so it's worth having a chat with the local authority nearer the time.

Messedupmoney - to answer your original question. I would just send back saying you're not interested in buying back the BI at the present time. The OR doesn't need to know you intend letting the property be repossessed as there's no action for them to take until it actually happens.

SVR how thick am i.

Most lists are driven by housing need with points or bands, my point is get your name down anyway because even though they will have no housing need and therefore will have nil point or lowest band , by re registering each year and keeping them informed of a COC ie change of address.

Should there housing need increase, they then may get higher banding /points and at that point they are likley to have there housing need met earlier, because of their time on the register.

For me it wouldnt matter hwo long id been on the list as i would never get any priority as no kids, health or age issues, but those that do, its always worth registering.

A lot of lists are now also starting to allocate to some of the lower bands and are insisitng on no children, single or couple of a age group and must be working, its part of the governments plan to have more sustainable and mixed communities and steer away from social housing that only goes to the ill, aged or homeless.
In my area the new builds in the better areas are attracting a proffessional person as that is the letting brief on them.

Ive seen people who have been given urgent housing status wait a long time over the person that registered five years ago and for some reason now has urgent banding status.

In some areas older persons accom is hard to let, because it could be a rural property, therefore time on the register would enhance the offer opportunity and more likely be offered to the lower bands.

System

I am not going on a housing list. End of.

sundays

messedupmoney wrote: »

I am not going on a housing list. End of.

I was trying to help, because i believe being well informed of all your options is the way forward.

You may find the options you are expecting as a BR now or in the future may not be available or as you expect.
What would you do for example if your new let , asked you to leave having stumped up tons of dosh of rent in advance, to be then asked for the same thing in advance on the new let , and you hadnt provided for that sudden change or had that dosh.

Anyway as part of mortage protocol arrangement for repossession the lender has to advise your housing advise team at the council or whoever else does the task in your area of possession proceedings , and they are suppossed to contact you to ensure you understand the pitfalls of repossession and are fully prepared. If they think you can afford it and are deliberating allowing yourself to be repossessed they will then tell you how they wont help or assist you in the future should you have to present as homeless.
Of course its not mandatory to attend and im sure you wont need that advise as you have made the decision, but its about preventing you becoming homeless in the future because of the decision you are taking.

System

No, I know you were trying to help Sundays, no problem there. It's a valid poit - I just didn't want this to be a protracted discussion on something we'll never do.

I'm expecting we'll move in with my Dad temporarily until we can get 6 months deposit together for a rental. This will help him out too as he's not too well at present. We're looking at rental probably after I'm discharged. This year will be quite quiet for us work-wise so hopefully I wont get an IPA before discharge, which will make life a lot easier going forward.

We work (for ourselves), have no kids and don't tick any of the boxes for this kind of help. We're not a housing crisis priority and I wouldn't expect - or want - to take a place of someone who needs it more. Plus the waiting list around here is many, many years.