Land Registry Letter

Emmamumof2

Hi Guys

As you may recall went BR 13/2/12 - house is in negative equity to tune of £35K - during interview examiner explained process for my husband to buy BI as we want this settled now. She explained he'd have to offer in excess of £1,000 and pay their costs of £211 - fine.

Had letter from them last week offering opportunity to buy BI - sent in 3 valuations, mortgage statement and the offer of £1,010 plus £211 costs to buy BI mid-week last week so no action obviously from that yet - but hopefully wheels are in motion - as an aside anyone any idea how long that might take from experience ?

My question is - week after we receive above we both get letters from land registry - notifying of application for Form J and Form A restriction on property. Is this normal? Is this purely part of the process, they log the restriction automatically and then husband buys BI and they lift restriction once in receipt of the money? Is this why you pay the £211 costs for them to get their Solicitors to lift the restriction?

Can someone please put my mind at rest?

Thanks a lot in advance for any insight.

debtinfo

yes it is normal, they register a restriction so the property does not get sold by anyone else in the meantime

Emmamumof2

I knew/hoped you'd reply debtinfo!
Any idea how long the process of buying the BI might take after sending in the mortgage statement and valuations?
i presume their Sol's just lift the restriction when th BI has been bought back?

TIA!

debtinfo

well normally it is the negotiating the price that takes the time, once that is done then the solicitor doing the paperwork does not take all that long , a month or 2 maybe, one hold up that can happen is that you have to ask for the mortgage company if they object as they are also a party to the the property. Thet rarely object but it can sometimes take a while to get them to reply in writing.

Yes the solicitor will lift the restriction when all is said and done

DI

Emmamumof2

Thanks debtinfo - I c ant see them dragging it out hoping for an increase in value when its £35K in negative equity - so hopefully they will press on with the offer of £1,010 plus solicitors fees as is - I have put forward the request for such on the grounds of mental heath, as you many recall from previous posts.

Ill update you when its complete and thank you again.

Emmamumof2

We have had a letter from the OR accepting the nominal consideration of £1,000 plus £211 costs as the house is in neg equity- we are sending the remittance this next week.

Is it best to send consent back to the Land Registry to apply the restriction immediately so that as soon as the OR Solicitors have the remittance and start work lifting the restriction it is already in place?

Who asks the mortgage company if they agree is it us or the OR sols? If its us we can write now and ask for confirmation in writing but i wouldn't know what we're asking for! Any help appreciated....

debtinfo

yes send the Land reg letter back asap

It will be you that asks the mortgage company, once the OR solicitors get involved they will ask you to do it, best to wait until then to keep everything in the right order

Emmamumof2

Thanks a lot - will get the Land Reg letters off on Monday then

sundays

why the urgency to pay them 1k, you cant do nothing with it . And i certainely wouldnt pay it in the first 12 months as you are required to tell them any fortune you may come into in the undischarged period.

debtinfo

Although you are correct from a financial point of view, that being it probably wouldn't regain the the 35K over the 3 year period and so probably would revest for free after that time, some people do like the surity of having everything done as quickly as possible so they dont have to worry later

Emmamumof2

As debtinfo says it will very probably (definitely) not make the £35K back in 3years however, I definitely do need the certainty of knowing the OR cant touch it after my husband has made the nominal payment for the BI, I am suffering a mental illness and the uncertainty makes me worse so for us its worth every penny of the £1,211 just to have it settled.