Beneficial Interest after 2yr3mnth

flinko

Hi,

I received a letter from the OR's office detailing that they believe my beneficial interest to be just over £11,000 based on their valuation.

Their valuation isn't a million miles away in my opinion, maybe 10% too high - Does anybody have experience of negotiating this figure with the OR? How low can/do they go? I have had an estate agent's valuation which is closer to what I think a sale would bring.

Anybody got experience of haggling this benficiary interest figure?

TIA

debt_doctor

flinko wrote: »

Hi,

I received a letter from the OR's office detailing that they believe my beneficial interest to be just over £11,000 based on their valuation.

Their valuation isn't a million miles away in my opinion, maybe 10% too high - Does anybody have experience of negotiating this figure with the OR? How low can/do they go? I have had an estate agent's valuation which is closer to what I think a sale would bring.

Anybody got experience of haggling this benficiary interest figure?

TIA

Hi, the difference you are talking about is very important. With a beneficial interest of under or up to £10k, if no purchaser of the interest can be found then a charging order would be placed upon the property rather than a forced sale.
Over £10k would start to bring the likely hood of attracting an IP to sell the property.
DD

flinko

Thanks DD

I do want to purchase it back, so that over or under 10k difference doesn't matter really does it? More important to me is getting the price as low as possible of course, just wondered how open to negotiation the ORs are?

Also, when a figure has been agreed by both parties, does it have to be paid as a lump sum or can it be amortised over a period of time?

flinko

Nobody have experience in dealing with this negotiation?

alastairq

Speak to the OR.

They will offer you the opportunity to purchase the OR's interest.

They are only interested in the financial return, not in making you homeless.

If you have evidence the property should be of a lower value than that identified by the OR, then you can make an offer. However, the OR...although open to argument, may be adamant if the difference is small.

Each OR will respond slightly differently to negotiation. Much will depend on how strong your own evidence is?

Therefore, one person's experience may not be that of another.

So, get your ducks in a row, evidence-wise, contact your OR, simpy explain what you are [at the moment] prepared to offer, and see what they say?

If they are not prepared to move [which you are obviously happy with?], then agree to purchase the OR's interest.

Costs may be involved too, don't forget.

Tinks74

One tip from an IP I know.

There are different valuations of houses.

An Estate Agent will often value a house at the highest price possible in order to maximise their potential fees.

A Chartered Surveyor will give you a realistic warts and all valuation taking into account any defects.

The Chartered Surveyor's valuation is likely to be less than that of the estate agent who is touting for business.

The lower the valuation the less the available equity.

Obviously there is a cost involved in employing a Chartered Surveyor for this, however in the long run it may be beneficial.

TheGardener

Perhaps part of the equation would be the costs incurred by the IS in an open market/forced sale? Perhaps you can highlight the amount the OR will save if you buy it rather than the hassle and cost of marketing? The OR would have to believe you might genuinely walk away if the price was too high though.

At the end of the day, if you are polite but focused in your dealings with them - then the worst the OR can do is not budge on the price. :cool: