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rollercoaster
Junior Member
United Kingdom
327 Posts |
 Posted - 30 October 2010 : 12:29:07
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After receiving a chartered surveyor valuation for our property, 12K equity has been found. we have since had valuations from estate agents based on quick sale and they are coming in at the same. As requested I am going to send the paperwork to the OR on Monday, however, we have only got 3K saved at present to purchase the BI (due to a combination of a pay rise and our new post BR frugal ways)and really want to keep our home. Our 3 years are not up until August. My questions are:
1) what would be a reasonable offer to make for the BI?
2) would the OR except the 3K as a down payment and allow us a time to raise the rest? (we have no one to ask to purchase it for us) or would they go ahead and force a sale.
We are really nervous about sending the paperwork in case it sets a ball rolling before we can raise the rest of the money! 
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 31 October 2010 : 00:19:49
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Hi rollercoaster,
by saying we,I take it that both of you are bankrupt, so the £12k equity will relate to £6k each of BI, and that you declared yourself bankrupt, rather than someone declaring you bankrupt?
If the equity is £12k, a reasonable offer is going to have to be somewhere near that figure, although you have to bear in mind, what costs the OR would have to incur to realise the interest in the property(i.e legal costs, etc) which could amount to anything up to £3,000 so an offer would be more cost effective for the OR.
With properties that are in equity, the OR always has to consider how to deal with it. Generally anything up to £10,000 is unattractive to an IP as trustee, as normally once costs etc are taken out, it means the IP will come out of it with not very much, which is why when I had several cases with fairly low equity(i.e around £10k) they were generally passed onto the RTLU to deal with, but there are always some IP's who will buck the trend.
So as always with property seek advice.
Big Al |
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rollercoaster
Junior Member
United Kingdom
327 Posts |
Posted - 31 October 2010 : 12:34:43
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Thanks Bigal.
Our case is with the RTLU and has been for a while. They know we want to stay in thre property and I assume as we are nearing the 3 year stage (Aug 2011) they have asked for the valuations etc. Our main problem is: will they allow us some time to pay or will they want full amount immediatly and force a sale? (we have 3K saved and could raise the rest if we had time) |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 01 November 2010 : 02:17:54
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sadly i think not because they only have 3 years in which to do something with the property.
what they could do is place a charge on the house and then you can arrange to buy the charge from them when you have the money.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman)
RevivaUK and Paul Johns helped me through it all i can't recommend them enough!! |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 01 November 2010 : 11:17:43
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Hi,
as Chester2005 said, it is unlikely that they will allow you to pay as it were in instalments, the most likely outcome is a charge, as RTLU's are notorious for being more agressive in realising assets than a normal OR's office.
Big Al |
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rollercoaster
Junior Member
United Kingdom
327 Posts |
Posted - 02 November 2010 : 21:32:33
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I have no objection to having a charge placed on the property and then us buying this back, effectively this gives us the time needed to raise the cash. 
When I send the figures, should I let them know that we are unable to raise the equity immediatly and suggest a charge or would they probobly do this as a matter of course.
I will do anything to ensure they dont force a sale. 
Thank you both for your advice, I thought it was just a matter of pay up or get out, it is a small comfort to know there could be a plan C. |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 03 November 2010 : 00:28:31
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Hi Rollercoaster,
I've had a closer look at the technical manual in relation to the role of the RTLU in dealing with the BI in your property.
The request from the RTLU has been prompted by a review required at the 2 years 3months point prior to the 3 year point when the property would automatically re vest in to your names.
In your case the equity is above £5,000, and so they will require you to make an offer to purchase your interest in the property, which at the moment is only about £3,000 or so, if that is all you can offer, then you must still make it(as said before, it's doubtful that they would accept instalments etc),as if they do not then they will consider appointing a trustee other than the OR to deal with the BI. However, they should attempt to contact you by phone to inform you of this, to give you the opportunity of buying out the interest.
However, this is where what I said the cost of obtaining an order of possession, sale and other legal costs could influence what happens next. If the OR doesn't accept your offer, they may give you another opportunity to increase it, but if it can't be increased, then the OR can then offer the case to appoint a trustee other than the OR.
At what level an IP will take the property on is not an exact science, but at your level of equity it is borderline, as by the time legal costs, the OR's costs, and other incidentals are taken into consideration, any surplus may not make it n attractive option to an IP.
So with this in mind, if after offering the case to 2 or 3 IP's none are willing to take it on, it is then that the RTLU will move to obtain a charging order. So the offer of £3,000 should be made, whilst drawing attention to the effect of costs etc that would impact on any available equity, and as to whether an IP would be willing to take that risk as well, if the £3,000 was rejected.
I did have cases where there was around £10-12,000 in equity, which IP's wouldn't touch due to low margins involved, but what one IP does in the North West doesn't neccessarily indicate how others will make decisions in other parts of the country.
Hope this makes it clearer
Big Al |
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rollercoaster
Junior Member
United Kingdom
327 Posts |
Posted - 03 November 2010 : 18:49:16
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thank you so much again for your stirling clarification and advice.  |
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