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    • Dazzling
    • By Dazzling 5th Oct 18, 11:43 AM
    • 4Posts
    • 0Thanks
    Dazzling
    Beneficial interest help
    • #1
    • 5th Oct 18, 11:43 AM
    Beneficial interest help 5th Oct 18 at 11:43 AM
    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
Page 1
    • silvercar
    • By silvercar 5th Oct 18, 12:11 PM
    • 38,288 Posts
    • 160,920 Thanks
    silvercar
    • #2
    • 5th Oct 18, 12:11 PM
    • #2
    • 5th Oct 18, 12:11 PM
    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
    • By Dazzling 5th Oct 18, 1:47 PM
    • 4 Posts
    • 0 Thanks
    Dazzling
    • #3
    • 5th Oct 18, 1:47 PM
    • #3
    • 5th Oct 18, 1:47 PM
    My wife and I separated and she signed everything over to me and then we got back together a couple of years ago. I donít really knownif she has any equity in the property to be honest I didnít state that she did in any of my bankruptcy forms.
    • debt doctor
    • By debt doctor 6th Oct 18, 7:20 PM
    • 4,370 Posts
    • 6,038 Thanks
    debt doctor
    • #4
    • 6th Oct 18, 7:20 PM
    • #4
    • 6th Oct 18, 7:20 PM
    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
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
    • Mouse007
    • By Mouse007 7th Oct 18, 5:10 PM
    • 108 Posts
    • 65 Thanks
    Mouse007
    • #5
    • 7th Oct 18, 5:10 PM
    • #5
    • 7th Oct 18, 5:10 PM
    Hi,
    From your figures it seems that the property is in negative equity by £2.5k - would you agree?

    DD
    Originally posted by debt doctor

    I think the equity is £7.75k (£115k - £90k - £177.25k)
    • Dazzling
    • By Dazzling 8th Oct 18, 2:01 AM
    • 4 Posts
    • 0 Thanks
    Dazzling
    • #6
    • 8th Oct 18, 2:01 AM
    • #6
    • 8th Oct 18, 2:01 AM
    Yeah about 5-7k thanks for your replies
    • TrickyDicky101
    • By TrickyDicky101 8th Oct 18, 9:41 AM
    • 3,207 Posts
    • 2,116 Thanks
    TrickyDicky101
    • #7
    • 8th Oct 18, 9:41 AM
    • #7
    • 8th Oct 18, 9:41 AM
    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
    • By Dazzling 8th Oct 18, 5:10 PM
    • 4 Posts
    • 0 Thanks
    Dazzling
    • #8
    • 8th Oct 18, 5:10 PM
    • #8
    • 8th Oct 18, 5:10 PM
    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 ? Iím also thinking about waiting it out the 2 years 3 months but Iím worried that is just building more equity up.
    • Mouse007
    • By Mouse007 13th Oct 18, 6:31 PM
    • 108 Posts
    • 65 Thanks
    Mouse007
    • #9
    • 13th Oct 18, 6:31 PM
    • #9
    • 13th Oct 18, 6:31 PM
    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.
    Originally posted by Dazzling

    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
    Last edited by Mouse007; 13-10-2018 at 6:32 PM. Reason: to add
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