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T O P I C R E V I E W
natasha.e
Posted - 26 February 2009 : 06:35:01 When the beneficial interest is worked out do they take into account early redemption figures?
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John
Posted - 26 February 2009 : 08:33:34 Hi
it's a debateable point. You should try and have it included and it's always best to include the redemption figure within the Statement of Affairs. Clearly if the examiner does allow the penalty any equity figure and subsequent benefical interest calculation would be less which would be to the potential purchaser's advantage.
However, redemption penalties only really come into force if a sale is actually made or a change of mortgage occurs and this does not happen in the scenario of purchasing beneficial interest. The bankrupt's asset is the difference between the value of that asset and the mortgage owed. Unless a full sale or change of mortgage actually happens the redemption penalty doesn't apply and therefore the OR will usually calculate the BI figure without considering the penalty.
