| T O P I C R E V I E W |
| hammy0107 |
Posted - 09 April 2009 : 13:25:17
Bit of a long message so i apologise in advance. I have been offered the chance to buy back the BI in my home for £1.00. I have today received this letter / deed of assignment and don't have a clue what it actually means.
What i am struggling to understand is this:
'Please note that on completion of the assignment the legal title will remain vested with the official receiver' - What does this mean? I thought i was buying it back from the OR so what does it mean 'remain vested with the OR'?
'Should you wish to have the legal title transferred back at a later date you will need to instruct solicitors to act for you' - Again i thought by paying the £1 and the solicitors costs then this would automatically be transferred to me. Do you know how long i have to transfer the legal deeds back to me? If i don't do this for a few months, i.e whilst i am getting solicitors costs together will it matter? Does the OR still have any right over the property?
' We would therefore strongly urge you to seek independant legal advice before signing this deed of assignment' - Do i really need to seek advice as this is obviously another cost i can't afford? Shouldn't it be straight forward as the OR does this every day of the week? I could do without paying for advice that i don't really need.
' In consideration of the payment by the purchaser to the official receiver of the sum of £1 the official receiver assigns to the purchaser the beneficial interest in or to the property now vested in the the official receiver as trustee in bankruptcy to hold to the purchaser absolutely' - Now this reads to me that for £1 the OR will sell the BI to me. So why would the legal title remain vested with the OR upon completion of this assignment?
Can anybody explain this in plain english please. What i would like to do is sign this Deed of Assignment, without seeking advice. And then when i have saved the £250 - £350 (3 or 4 months) i have been quoted for a solicitor transfer the legal title back to me. Is there any reason i shouldn't be doing this?
HELP!!!!! |
| 10 L A T E S T R E P L I E S (Newest First) |
| chester2005 |
Posted - 25 April 2009 : 13:35:25
The other thing that many people can easily overlook is Inheritance Tax and property value upon death.
If the BI of your house is in Someone elses name and you left it there until the mortgage was paid off and say there was £300,000 equity and something happened to the person who had bought the BI for £1. Officially it is their Equity not yours!! and it could easily put their estate over the threshold for inheritance tax and then 40% tax!!
Long term it is safer to have the BI in your name or get it back in your name sooner rather than later.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
Life's too short!!! |
| Crockett |
Posted - 25 April 2009 : 13:28:57
Hi,
Thanks for that. My mortgage is completely up to date and I have never missed a payment and want to continue with it so fingers crossed that will be ok. I think it may be beast to look into putting directly into my name then and take my step father out of the equation, seems like less hassle later then. |
| chester2005 |
Posted - 25 April 2009 : 13:22:43
When the property comes out of neg equity the equity will be yours if you have bought the BI
Officially if your step father owns the BI then the equity is his.
As far as the mortgage goes , generally the mortgage provider just wants the motgage paid and to know stuff like your are renting it out!!!
If you are still living there and paying the mortgage i wouldn't feel the need to tell them.
Bearing in mind , regardless of who owns the BI the Mortgage id still a debt secured on the property.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
Life's too short!!! |
| Crockett |
Posted - 25 April 2009 : 13:03:48
Hi,
Just picked up on this old post. I have a solely owned property which is in negative equity. My step father was going to take over the legal title but now I'm thinking maybe I should just take it back myself. My parents have already sent off cheques for £1 and £473 solicitors costs but nothing has been done yet. Couple of questions -
If I do still put it in my step fathers name do I have to change my mortgage as I will no longer be the legal title owner?
If I put in my name will I still have to change my mortgage or remortgage?
Finally if for some reason my house comes out of negative equity in the next three years can the OR claim it back off me?
Ta.
If it does come back to me |
| hammy0107 |
Posted - 09 April 2009 : 17:25:07
Thank you again.
I have not been advised of any other costs. I have so far paid £1 to buy the BI and £500 for the OR's solicitors fees (solely owned property). As for stamp duty my property is valued below the £175k threshold. The only other cost i am aware of is to instruct my own solicitor to complete the transfer of legal title. |
| John |
Posted - 09 April 2009 : 17:20:03
Hi
sorry I didn't realise you were repurchasing your own BI. I would say your analogy is correct.
The OR can set a time limit on the BI but I doubt there is such a thing in respect of the title deed.
Gally has also made a couple of valid points re the cost of a sole owner repurchasing BI (the higher amount relates to the title deed)and the Ad Valorem fee of 1%.
John White
England Jackman & Spacey |
| gally |
Posted - 09 April 2009 : 16:38:01
sorry to butt in but hammy0107 doesnt it cost more buying back your own bi ( i am just starting out on this adventure )i understood you payed more and had to pay 1% stamp duty ? |
| hammy0107 |
Posted - 09 April 2009 : 16:31:11
Thank you both,
John,
The OR has agreed that I can purchase the BI back not a third party.
The more i think about it, i am beginning to think:
I am signing to agree to buy back the BI and the OR is signing to agree to sell the BI to me. However the deeds will remain unaltered until i instruct a solicitor to change them back to my name. Do you think this is correct? Also do you think there is a time limit for me to do this? |
| John |
Posted - 09 April 2009 : 14:12:11
Hi
when you sign the assignment document the letter points out that the title deed still vests with the official receiver as trustee.This is correct as the purchaser will be buying what was your BI from the official receiver, not you, as you no longer have an interest from the moment you were declared bankrupt. So effectively by signing, you are basically giving your ok for the title deed to pass from the OR to the purchaser.
It therefore follows if you, at a later date, wish the title deed to be transferred back from the purchaser to you then you would need to meet the conveyancing cost.
There is no real need to engage your own solicitor or legal advisor at this stage. The letter is advising you merely on the basis that as the solicitor involved in the purchase of the BI represents the OR they cannot be responsible for your part in the process. The solicitor is exercising due diligence by pointing this out.
I hope this helps.
John White
England Jackman & Spacey |
| Melanie.n |
Posted - 09 April 2009 : 13:39:11
The best advice I can give you is to ring your examiner at the OR's office (or the person who sent you the letter) and they will only be to happy to go through the letter with you and explain it in full
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
email me at melanienicholas@jonesgiles.co.uk
|
