AD in 2 weeks and buying BI

treading_carefully

First of all I would like to say a big thank you to all the regular contributors on this forum. I did not need to post much as I found a lot of my answers from previous threads. One regular poster who unfortunately is not active any more was Debt Info and I shout a great big THANK YOU to him / her hoping he /she still pops in for a lurk now and again.

Automatic Discharge is coming up in 2 weeks and I will not have that final sigh of relief until that day goes by.

I have not approached the OR yet about buying beneficial interest in my house. House is owned jointly with wife and is about £10,000 in negative equity.

My question is when I write to the OR about the BI am I requesting to buy my interest back and if accepted house is then jointly owned again by my wife and I. Or does my wife buy the interest back of the receiver and then going forward she then owns the entire beneficial interest in the property. I think if there is an option I would prefer my wife to own the entire beneficial interest in the property.

It is my understanding that even though house is in negative equity the receiver will still require a minimum payment of £1000 plus solicitors fees. We wish to keep the house as we love the area and the mortgage payment is much less than rental levels for a similar property.

tigerfeet2006

Do you think that the house will crawl into equity territory in the next 2 years?

treading_carefully

No I would be fairly confident it will remain flat and slightly negative equity.

tigerfeet2006

Then why buy the BI back? Why not wait for it to be automatically returned after the 3 year mark?

treading_carefully

We have mulled that over but it is kind of a psychological thing to get things done and dusted for good now and move on.

fiveyearplan

To answer your question about who retains the BI if bought back - if you are on the mortgage then you are still joint owner of the house.

silvercar

My question is when I write to the OR about the BI am I requesting to buy my interest back and if accepted house is then jointly owned again by my wife and I. Or does my wife buy the interest back of the receiver and then going forward she then owns the entire beneficial interest in the property. I think if there is an option I would prefer my wife to own the entire beneficial interest in the property.

Whoever buys the beneficial interest can decide whether they are doing it to own the BI or to assist the current owners. The ownership can be put in writing.

Whenever a third party assists by buying the BI, they can do so in return for a future financial reward or as a generous gift to assist the current owners.

To answer your question about who retains the BI if bought back - if you are on the mortgage then you are still joint owner of the house.

More accurately, if you are on the deeds (registered with Land Registry) then you are an owner.

anon_m

we are in a very similar situation, AD in just over a month and house in negative equity of approx £10k. We want to buy our BI back as we want to draw a line underneath everything and move forward. I was told by my OR on my original phone call that if the house was over £10k in negative equity it would have very little chance in gaining it back over the coming 2 years and 3 months and they may look at vesting it back to us early with no payments. Does anyone know whether this is correct?