Home Beneficial interest

roughsea

Hi

I have just received a letter from the insolvency service in regards to the beneficial interest in my home and their interest of roughly £30k

I have contacted a couple of estate agents as requested to see if the valuation is correct and if it can be reduced.

My question is would it be possible to ask for a charging order rather than pay the £30k beneficial interest ?

The main reason being I'm alone family member and no one to leave the house to when I die and wondering if that would be more of interest to the receiver rather than £30k payment in the next few months.

I have roughly £120k left on the mortgage and im 50 years of age.

Any advice appreciated

fatbelly

I'm not aware of that being an option. I notice from the technical manual

31.3.173 Insolvent’s interest over £10,000 and no willing purchaser – appointment of IP

In cases where the insolvent’s interest is greater than £10,000 and there is no willing purchaser for the interest, the official receiver should seek the appointment of an insolvency practitioner as liquidator or trustee, following the guidance in Chapters 16 or 17, as appropriate.

The figure of £10,000 is given as a guide, and may vary depending on local conditions and the stance of local insolvency practitioners. In some cases a lower figure may be sufficient to attract an insolvency practitioner or, conversely, a higher amount may be required.

It might also be appropriate to seek the appointment of a liquidator or trustee where there is a willing purchaser but there are other complex assets in the case, or if the level of the insolvent’s interest in the property in dispute and there are insufficient funds to seek legal advice (see Part 4).

Minkym00

It won’t be a charging order for that amount I’m afraid. There is a prospect of a return to creditors and so the OR is duty bound to pursue it. You’re only 50 and could live another 30 years before your asset could be realised.

katyp

We had £29k equity in our home and a charging order was not an option.
Our IP has been fantastic and we have been very lucky, but at the very first meeting, the main focus was realising the equity in our home��

debt_doctor

Hi,

I'm afraid I would have to agree with what others have said. A 30k charge won't be considered if the interest can be realised by selling the property.

In any event, a charge attracts statutory interest at 8%, the charge value would soon spiral upwards.

You, of course, will receive your part of the equity upon the sale of the property. Perhaps used for a rental deposit and substantial monies in to your savings account.

DD

roughsea

can I make an offer rather than pay the full £35k?

I'm sure if the house was put on the market it would not sell as its not in the location and also in sure anyone wanting to purhcase would make an offer

What offer should i make ?

roughsea

can i ask if you paid the full £29k or did you make an offer?

advice appreciated

katyp

£29k was our offer.
The house was valued at £220k, which we objected to, as that was the top selling price of any house on our estate, and our house was is a much worse state.
Our mortgage is £140k, so going by their valuation, there was £80k of equity.
They settled for £29k, so on that basis, yes it is definitely worth making an offer, although the cash cannot come from you, obviously.

roughsea

you mention the cash can not come from me?

part of the payment is from my savings and im 1 year 6 months out of bankruptcy

-taff

You could try a RICS quote for more accuracy [ and use it if it leans towards less]

roughsea

to be honest im happy with the valuation

I called the insolvency guys and they are very helpful and mentioned would they be happy with an offer of £25k and he mentioned it would be acceptable