Beneficial interest help

Dazzling

I was looking for some advice. I was discharged from bankruptcy a few days ago and I am now planning on trying to secure the beneficial interest of my home back into my name.
I had he House valued at the start of the bankruptcy for 115k, have a 90k mortgage and the local council own 15% (17.250k).
Would I be better off changing my mortgage to interest only and waiting the other 2 years or would I be better making the OR an offer to buy it back? If so what should I offer them and how should I contact them. Also my wife and daughter live here but the house is solely in my name.
Any advice would be greatly appreciated thanks x

silvercar

The OR could well decide not to look at the property until 2 yrs 9 mnths from the start of your bankruptcy.

In the first few years of a mortgage most of the payments are of interest, so it won't make a major difference to the equity, though interest only would help keep the equity as low as possible.

I am wondering if your wife could argue that she has a share of the equity, even though the property is in your name.

Dazzling

My wife and I separated and she signed everything over to me and then we got back together a couple of years ago. I don’t really knownif she has any equity in the property to be honest I didn’t state that she did in any of my bankruptcy forms.

debt_doctor

Hi,
From your figures it seems that the property is in negative equity by £2.5k - would you agree?
The standard 'buy out' figure is £1000 (plus costs of about £450) for a negative equity property and can be offered at any time.
It is of course up to the OR whether they accept your offer, and the OR might not agree with you on the property valuation.
Current policy is not to force a sale of properties with less than £10k equity - they apply a charge instead, which attracts statutory interest (currently 8% PA)

DD

Mouse007

debt_doctor wrote: »

Hi,
From your figures it seems that the property is in negative equity by £2.5k - would you agree?

DD

I think the equity is £7.75k (£115k - £90k - £177.25k)

Dazzling

Yeah about 5-7k thanks for your replies

TrickyDicky101

I highly doubt your lender will agree to change the mortgage to interest only. You have a poor credit record [due to bankruptcy] so IO is unlikely to be available to you.

Dazzling

Ok thanks for that so have you any idea how I would go about contacting the OR to purchase the benificial interest or shall I involve a solicitor ? I’m also thinking about waiting it out the 2 years 3 months but I’m worried that is just building more equity up.

Mouse007

Dazzling wrote: »

Ok thanks for that so have you any idea how I would go about contacting the OR to purchase the benificial interest or shall I involve a solicitor ? I’m also thinking about waiting it out the 2 years 3 months but I’m worried that is just building more equity up.

Its easy to do direct. Just write to the OR and ask to buy back the equity for £x. You don't need a solicitor.


Remember to deduct selling costs from the equity to arrive at your offer figure. If OR accepts great, if they reject you can increase your offer.


Edit to add:


I wouldn't wait, as you say equity may be going up