| T O P I C R E V I E W |
| Crockett |
Posted - 23 April 2009 : 13:37:51
Hi,
I've just been in touch with the OR's solicitor reagrding the transfer of the BI in my solely owned house to my step father. My parents have already sent off the cheques for £1 for the BI and £473 for the solicitors fees. The solicitor is saying that as the property is solely owned the OR also holds the legal title and this will need to be transferred to my step father and for that they will have to appoint their own solicitor. From my previous raeding of posts on this forum I was under teh impression that there was no need to appoint your own solicitor.
Could one of the experts please advise whether this is the case and whether it is possible to do the transfer with the land registry yourself. The OR's solicitor advised that the responsibility for carrying out the transfer lies with the purchaser so I'm just wondering what my parents have actually paid the £473 for? I'm also a little concerned that if the legal title of the property is not in my name will this have an affect on my mortgage?
Advise really appreciated as I am very worried. |
| 6 L A T E S T R E P L I E S (Newest First) |
| John |
Posted - 27 April 2009 : 19:16:55
Hi
I'm afraid your answer from the OR's office is yet another case of the person you actually make contact with not being aware of the situation.
It's a nonsense to suggest that you can't buy back your own BI as others on here have done it.
It's also a nonsense to suggest that a bankrupt cannot own an asset. What about vehicles that are made exempt through necessity and what about 2 spouses both declaring BR when each buys the others BI. You are not speaking to the right people I'm afraid.
Ask to speak to the OR or his assistant on the basis that you believe the advice you have been given by your examiner, or an admistrator, to be incorrect. Tell him you wish to consider buying the BI yourself and ask him to outline the procedure for that to happen and any problems that could occur.
John White
England Jackman & Spacey |
| Crockett |
Posted - 27 April 2009 : 09:48:24
Further to this story, I have just phoned my OR's office and the person I spoke to said they had never heard of the BI been purchased back by the sole owner of a property as this would then be classed as an asset again!! Is this correct??
Please could someone advise as I am just going round and round in circles. I am extremely worried that if I do proceed and put the legal title in my step-fathers name it will affect my mortgage in some adverse way. |
| Crockett |
Posted - 25 April 2009 : 12:44:31
Just wanted to bump this back up to see iff anyone else has had experience of this or any advice.
Cheers |
| John |
Posted - 23 April 2009 : 20:55:30
Hi
it has always been the case that a bankrupt can purchase back their own BI.
It has rarely been done due to the Ad Valorem fee.
Basically it means that after having paid £1 for the BI plus the £473 for the solicitors to remove the OR's restriction and to change the title deeds back to your name you then have to pay 1% of the value of the property, rather like stamp duty, as an Ad Valorem fee.
Clearly the cost of this process is very high and therefore in the vast majority of cases it's avoided by nominating a 3rd party who is not liable for such a fee.
But increasingly I have seen cases recently where sole owner's purchase back their own BI without the Ad Valorem fee requirement being invoked.
John White
England Jackman & Spacey |
| Crockett |
Posted - 23 April 2009 : 19:28:35
Hi John,
Thanks for the reply, I wasn't given the option of buying the BI myself should I enquire about this? What is an ad valorem charge?
|
| John |
Posted - 23 April 2009 : 18:55:51
Hi
I would ask the OR's solicitor what the £473 payment was for as my understanding is that the extra amount, over and above the £211 for a joint owner's BI, is to deal with the Title Deed.
Then call land registry to see what can be done.
This is a situation I have not come across before as in my experience sole owners purchase back their own BI rather than transfer to a 3rd party.
The technical problem being the threat of an Ad Valorem fee but I am seeing more and more often where this fee is not being applied.
John White
England Jackman & Spacey |
