Beneficial Int. House

Scared_witless

Hi everyone,
Both hubby and me went BR 20 Feb, As we desperately want to keep the house the OR has sent us the letter about the BI in our house. (It was in negative equity but this month the early repayment charges have dropped off so now theres a few hundred pounds difference between the valuation and the redemption figure for the mortgage.

My brother will buy the BI for us, I know we'll have to agree the amount with the OR. I have ordered the Early Redemption fig from Northern Rock and also have an upto date valuation ready to use.

I was wondering if anyone else had been through this as a couple and could advise re the procedure.

The things I dont understand are:

1. Will Northern Rock have to agree to my brother buying BI from OR.
2. What happens if they don't agree
3. Does he then become responsible for the mortgage payments if we dont pay them etc. If this is the case would he have to go thro' a mortgage application.
4. What happens when we're discharged, can we buy the interest back from my brother for the same amount (he's v. trustworthy).

The OR did talk to me about all this in my interview but to be honest I didnt understand some of it and rather than ask him to go over it again to the simpleton that I am I thought I could deal with it later.:o Then when my hubby had his interview he thought I understood everything so didn't go there.

Hope you can help 'cos the sooner we sort this bit out the better.

Thanks everyone you're the BEST!

kind regards
SW

tigerfeet2006

Hi SW, rog2 is going through this at the moment and I am pretty sure Richard_S did it to. Send either or both a PM to look at you thread and I am sure they will help, they are both very nice,

Scared_witless

Thanks Tigerfeet
I have done that
Kind regards
SW x

rog2

I'm just off to work, but will reply in the morning.
My case is getting very drawn out, but it was for a much higher figure.

Richard_S

Scared_witless wrote: »

Hi everyone,
Both hubby and me went BR 20 Feb, As we desperately want to keep the house the OR has sent us the letter about the BI in our house. (It was in negative equity but this month the early repayment charges have dropped off so now theres a few hundred pounds difference between the valuation and the redemption figure for the mortgage.

My brother will buy the BI for us, I know we'll have to agree the amount with the OR. I have ordered the Early Redemption fig from Northern Rock and also have an upto date valuation ready to use.

I was wondering if anyone else had been through this as a couple and could advise re the procedure.

The things I dont understand are:

1. Will Northern Rock have to agree to my brother buying BI from OR. No they won't, it's a transaction between the O.R and yourselves and/or a third party. It doesn't affect the mortgage of the lenders security.
2. What happens if they don't agree They won't be consulted; it's about as relevant to them as the colour you paint the front door.:D
3. Does he then become responsible for the mortgage payments if we dont pay them etc. If this is the case would he have to go thro' a mortgage application.Absolutely, definitely not. It doesn't imply any obligations or liabilities for the person purchasing the B.I. The only implication is that if the value of the property increases, that equity will belong to the person holding the B.I.
4. What happens when we're discharged, can we buy the interest back from my brother for the same amount (he's v. trustworthy).Yes you can, although I'm not familiar with the procedure. We bought the B.I in our property as a couple; £1 each plus costs.:eek: :eek:

The OR did talk to me about all this in my interview but to be honest I didnt understand some of it and rather than ask him to go over it again to the simpleton that I am I thought I could deal with it later.:o Then when my hubby had his interview he thought I understood everything so didn't go there.

Hope you can help 'cos the sooner we sort this bit out the better.

Thanks everyone you're the BEST!

kind regards
SW

Hi SW,

Apologies for the brief post, if there's anything else you don't understand the post or PM again.

Regards

Richard

Scared_witless

Cheers Richard,

That makes me feel sooooo much better, I did phone my OR yesterday but he's on his hols 'til Monday. Big bro's coming to sign the forms this afternoon so we can set the ball rolling!

Thanks again
Kind regards
SW

Richard_S

Scared_witless wrote: »

Cheers Richard,

That makes me feel sooooo much better, I did phone my OR yesterday but he's on his hols 'til Monday. Big bro's coming to sign the forms this afternoon so we can set the ball rolling!

Thanks again
Kind regards
SW

Hi SW,

It is a surpisingly straightforward procedure once you've agreed the value, if any, of the B.I. We didn't bother with a solicitor for our side of the transaction because it was all quite simple.

You will have to pay the O.R's legal fees which I think are £213. The only thing we struggled with was finding a third party to witness our signatures who wasn't in any way related.

All the best,

Richard

Scared_witless

Hi Richard,
We'll have to get thinking who we can use for a third party. Did you have any trouble getting them (the OR) to accept a valuation and did they accept just one valuation or did you have to get a couple?


Regards
SW

rog2

Hi SW - sorry for the late reply - I was called in to work at 8 o'clock this morning, and have to go back at 4 o'clock. :eek: :eek:

I can, only, agree with what Richard has said, since it has been a bit different in my case - my BI was 'established' at £80k, and, although we negociated it down by almost £10k, it meant that my wife, who is 'buying' my BI, has had to take out a mortgage for part of the figure. This has meant that we had to go through solicitors, in order to get the 'charge' removed from the deeds.
My process has been going on for ages (over 1 year) and keeps being 'held up' by my trustee's solicitor - I just hope that they don't decide to 're-value'.
Your case, however, looks very straightforward, and I'm sure that it shouldn't take too long to resolve.
Good luck.

rog2

Scared_witless wrote: »

Did you have any trouble getting them (the OR) to accept a valuation and did they accept just one valuation or did you have to get a couple?

In our case, we accepted the OR's evaluation, as it was based on what houses had sold for, locally. However, if you disagree, you can get two, or three, local evaluations, and, unless there is a huge discrepancy, you can choose to use the lowest.

AmIdone4?

deleted post as found req'd info, was asking about beneficial interest:)