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inapickle
Starting Member
15 Posts |
 Posted - 01 December 2010 : 17:04:14
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Hello all
The property I live in is in my sole name alone and has a mortgage and secured loan against it. It is currently in negative equity of £25,000.00 of the combined loan/mortgage. The OR has said they have no interest in it and I will soon be contacted by their Poperty department.
Can anyone tell me alittle about this stage of my BR?? How much will it cost me to purchase their interest back based on my circumstances?? are there going to be any additional costs I may occur?? Do I have to obtain valuations or does the OR do all this on my behalf??
Any advice would be greatly received
Thank you all
Lucy
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Blackie
forum expert
United Kingdom
565 Posts |
Posted - 01 December 2010 : 22:56:58
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Hi Inapickle
It sounds as if your case has been transferred to the asset realisations unit of the Insolvency Service who will deal with the property. First it is likely that you will be asked to express your intention in purchasing the 'beneficial interest' in the property. If you wish to buy this you will be asked to provide a valuation and current mortgage and secured loan statements in order to confirm whether there is equity or not. If there is no equity, then you will be asked to pay £1 plus legal costs which I believe, as the house is in your sole name, to be in the region of £560. After this, the OR will have no further interest in the property.
All the best
John Blackadder |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 02 December 2010 : 00:13:16
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Hi Lucy,
As Blackie said you will eventually be given the option of buying back the beneficial interest in the property( £1 as the property is in negative equity), plus the legal title. The OR's legal costs are about £475 - 500, with TLT solicitors in Bristol being the ones they use for the conveyancing..
You will need an up to date valuation, current balances, the fees already mentioned, plus the lenders agreement to the process.
If you want, instead of paying out for your own solicitor to do the conveyancing, you could do it yourself, which is explained in the following:
http://forums.moneysavingexpert.com/showthread.php?t=2471695&highlight=
Hope this helps
Big Al |
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inapickle
Starting Member
15 Posts |
Posted - 02 December 2010 : 09:31:57
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Thank you both for that reply.
With regards to a valuation do I have get an official valuation done or could I just use websites like rightmove that show's sale prices in my area etc? I am just looking at ways of trying to keep the costs down.
If I am going to have to find £500 for the OR's cost, the cost of a valuation and maybe even my own solicitors this is going to be getting near to £1,000.00 which I just don't have, and if I did have it the OR would have taken it by now!!!
Can you pay by installments or could I purchase the interest back in say six months once I have saved the money up??
If I delayed purchasing the property interest back say for six months could this delay my BR in anyway?? |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 02 December 2010 : 11:57:11
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Hi,
regards the valuation, an online valuation wouldn't be accepted, but you could try approaching an estate agent for one(i.e just thinking about selling, but not really)which would be acceptable.
Unfortunately you can't pay the costs by instalments, and during my time with the insolvency service,I knew people who purchased the BI up to 18 months after bankruptcy,as rememeber the trustee(in this case the OR)has 3 years in which to deal with the property, before it automatically vests back to you.
If you do want to save costs, it may be worth exploring the link in the last post, as it does show that you don't need to line the pocket of a solicitor.
Big Al |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 02 December 2010 : 12:36:05
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Hi inapickle,
I agree with Bigal, just contact a couple of estate agents and tell them that you need to relocate due to work purposes and you have to be out of the property asap.
Tell them that your boss needs the valuations in writing as he is helping with relocation costs!
I know it's a fib, but you should get them in writing no problem then.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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inapickle
Starting Member
15 Posts |
Posted - 02 December 2010 : 12:56:44
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Thanks again Big Al
Am I right in thinking then that the OR has 3yrs from the date of my BR to deal with my property and that I can at anytime within the 3yrs purchase the OR's interest in my property? (once I have saved the fees up)
Does this in anyway delay or stop the possibility of an ED??
What would happen if my circumstances meant that I could not afford the cost associated with purchasing the interest back within or after the 3yrs period? Does the title revert back to me after that date (so I don't have to pay any Solicitors fee's) or do they sell the property?
I obviously want my property back into my name but its going to take a while to save up the costs involved and I'm worried that the delay may go against me in someway.
Thank you once again for your advice.
Lucy |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 02 December 2010 : 16:01:35
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Hi Lucy,
in theory the trustee has 3 years from the date of bankruptcy to deal with the property, which in a property with negative equity means the BI of the nominal amount of £1.
However, once your original OR office has dealt with the case, it will be transferred to an RTLU(regional trustee liquidator unit) whose sole purpose is to deal with assets, as long as the property is in negative equity they then review it at the 2 years and 3 month point to make a decision as to what they're going to do with it, if it's still heavily in negative equity they can revest the property back in your name early, but like I said, I don't know what's going to happen to the value of your property in over 2 years time, so I can't suggest a course of action to take.
So who knows what will happen to the value of your property in over 2 years time? that's something I don't know, so you could gamble and hope property prices don't rise in that period, saving yourself legal costs etc, or do you buy back the BI so that at least if property prices do go up, creditors wouldn't be able to make a claim against your property.
Big Al |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 02 December 2010 : 16:04:27
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Regarding any possibility of ED, your property shouldn't affect your chances, although even if you do get ED, the property still vests with the trustee for 3 years or until it's dealt with.
Big Al |
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sunshine
Starting Member
41 Posts |
Posted - 02 December 2010 : 17:19:02
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Hi,
Just to let you know that my husband and I recently bought back the interest in our property for a total of £213. It went through really quickly. It was £211 solicitors fees and £1 each. We didn't bother getting our own legal advice as it seemed very straight forward.
So it may not cost as much as you think....
We got three estate agents round...did the whole relocation story, got valuations in writing and then emailed them to our OR...whole thing took about 6 weeks in total.
Hope it all works out for you,
Sunshine x |
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inapickle
Starting Member
15 Posts |
Posted - 02 December 2010 : 17:23:12
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thank you so much Big Al
Lucy x |
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inapickle
Starting Member
15 Posts |
Posted - 03 December 2010 : 08:54:24
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Sunshine - £211 sounds alot better than £475-£500 like what Big Al says. I'm guessing thats because your property is jointly owned where my property is in my sole name. Anyone know why??
When I get to this stage I think I will do my own conveyancing and not use a solicitor at my side to try and keep the costs down.
The link that Big Al has supplied is very helpful and the process doesn't seem to be that bad. |
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sunshine
Starting Member
41 Posts |
Posted - 03 December 2010 : 11:48:51
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True...ours was in joint names....I hope you manage to get sorted. It was a major relief when we heard back they had no interest in the property...and even more of a relief when we got the stuff back about the land registry..
Really hope it works out for you xxx |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 03 December 2010 : 12:07:46
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Hi Lucy,
the reason the legal costs are higher for a solely owned property, is that in bankruptcy the legal title, and BI become vested with the OR, whereas with a jointly owned property it is just the beneficial interest.
Big Al |
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carl
Junior Member
115 Posts |
Posted - 06 December 2010 : 14:36:25
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Hello Forum
Not been on here for a while (all is quiet on my BR journey at present) but stumbled across this post and Lucy appears to be in exactly the same position as I am.
At present my house is 25k in negative equity and I indicated to the OR during my telephone interview that I would like to purchase the BI off them when the opportunity arose.
Am I right in think that the OR has three years to deal with the property and that gives me three years to purchase the BI from them?
Does this also work the opposite way that say for example I don't purchase the BI from them when its offered and waited to save up the fees but say in 8-12 months time my circumstances changed (lost job etc) and I could no longer affored the mortgage and secured loan on the property. Could I stop the mortgage and secured loan payment at that point so the house would get repoessed as normal and any shortfall would then be included in my BR? or does this no happen when discharged??
Thank you
Carl
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inapickle
Starting Member
15 Posts |
Posted - 09 December 2010 : 17:26:42
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Calling any forum experts!!!
Can anyone answer the questions raised by 'Carl' above? I to have the same questions about my property during BR
Thank you Lucy x |
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Topic |
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Purchasing property interest back from the OR
