| T O P I C R E V I E W |
| s10 |
Posted - 06 July 2008 : 12:47:17
Hi all S10 here.
I was wondering if anyone could explain to me what the B10 & B11 forms I recieved from the land registry are for. They have very little info on them, and just advise that since being BR my house is affected by a BR order? I thought this was for the OR to decide?
Any Info would be appreciated.
Kind Regards
S10
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| 12 L A T E S T R E P L I E S (Newest First) |
| JulianDonnelly |
Posted - 11 July 2008 : 11:30:09
Hi Melanie,
Many thanks for the clarification.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| melanie_giles |
Posted - 10 July 2008 : 17:28:11
Julian
If you mean that the Trustee has effectively three years to deal with his interest in a residential property - one option of which being to take a charge for the full amount of the bankruptcy debts and costs - or at any other agreed sum ratified by the Court, then I agree with you.
But to say that any charges granted in such way are lost at the end of the three year period under "use it or lose it" provisions of the Enterprise Act is not correct, there being no time limit to their existence or validity - subject to the case being reviewed by the Official Receiver every three years in accordance with current policy.
Not sure about your reference to fixed and floating charges which relate to company law. There was of course no real need for charges prior to the Enterprise Act, as the asset vested in the Trustee in any case for an unlimited period.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| JulianDonnelly |
Posted - 10 July 2008 : 13:28:52
Hi Melanie,
Sorry, sometimes I forget it's been a while since I passed my banking law qualification!
My understanding is that historically, floating charges were used and could (in theory) be held for 20 years+ where ALL the equity gain in that time can be demmanded. However, under the three year rule, a FIXED charge has to be used. Technically, there is no time limit as to how long this charge can be held, but it is fixed at the time of application and serves to give the BR more time to realise the monies. Therefore, under the Enterprise Act, the OR/Trustee has a maximum of 3 years to deal with a residential property by placing a fixed charge over it, and not taking into account future equity growth.
As a result, it's easier to explain it as a three year rule. Apologies if my simplified explanation has caused any confusion.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| Suzanne |
Posted - 10 July 2008 : 09:22:50
Can I just clarify that a restriction lasts for the 3 year period, when beneficial interest revests the bankrupt. However a charge is a different animal and lasts until paid off.
As it states in S313, although a property can revest in the bankrupt after the 3years, it would still be subject to the charge which would stand.
I think there has been some confusion between the difference of a restriction and a charge, as they are not the same thing.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
www.jonesgiles.co.uk
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| melanie_giles |
Posted - 09 July 2008 : 23:55:16
Are you talking about properties with equity or without equity Assist?
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| John |
Posted - 09 July 2008 : 23:29:01
I have just googled section 313 insolvency act 1986.
There is clear confirmation of a time limit of 3 years or the BI is automatically revested in the bankrupt. |
| melanie_giles |
Posted - 09 July 2008 : 22:01:24
Julian
As a bankruptcy specialist, could you provide me with your own interpretation of the provisions of Section 313 of the Insolvency Act 1986, and how you advise clients in this regard. This is something that I deal with regularly and in practice, so I am somewhat confused by your response to my comment.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| JulianDonnelly |
Posted - 09 July 2008 : 18:06:09
Hi Melanie,
I'm afraid I disagree. If the property is an investment property, then yes, the charge can be on there ad infinitum. However, if the property is the residential property, the three year ruile applies on a use it or lose it basis. This came into force in April 2004 as a result of the 2002 Enterprise Act. In addition, any charges held on residential properties for BRs prior to this legislation were given until April 2007 to realise them.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| Suzanne |
Posted - 09 July 2008 : 08:52:29
Hi S10
As Assist has said, this is just the Land Registry informing you that the OR has put a restriction on the property.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
www.jonesgiles.co.uk
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| melanie_giles |
Posted - 09 July 2008 : 00:33:59
Julian - the OR can place a charge over a bankrupt's property for a lot longer than three years. A charge can sit on a bankrupt's property ad infinitum.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| John |
Posted - 09 July 2008 : 00:01:46
Hi S10
don't be alarmed. The forms basically mean that the OR has already instructed the land registry to inform the OR if any searches are made in relation to your property for sale purposes. The search by a solicitor, in the event of an attempted sale, would highlight the restriction and stop the sale proceeding.
The OR will be in touch again to let you know the next step in respect of the property. |
| JulianDonnelly |
Posted - 08 July 2008 : 15:44:14
Hi S10,
I would suggest talking to your OR in this respect. The OR can place a charge over your property for a maximum of 3 years with a view to revaluation and release of equity gains in that time.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
