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hammy0107
Junior Member
399 Posts |
 Posted - 21 February 2009 : 11:06:06
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Hi all,
Just received confirmation that my wife can buy the BI in our home for £1.00. That is brilliant news, however they are also asking for a cheque for £500 to be paid to the solicitors. I always thought it was £1 plus £200 (and something). Any thoughts? |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 21 February 2009 : 13:18:06
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The standard figure for the purcahse of BI is £1 each and £211 costs. give them a ring on MOnday abd ask why have they requested £500? Unless of course there was a small amount of equity, but i cannot see them asking for such a small amount, definately check it with them as this figure does not seem correct
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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hammy0107
Junior Member
399 Posts |
Posted - 23 February 2009 : 13:09:53
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| Queried this amount with the OR today. Is seems that for a joint owned property £211 is the fee, however for a solely owned property (like mine) the fee is £500. Mixed emotions, it does now appear that i will be keeping my house (yiiipppppeeeee) but i have to find £500 quickly. |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 23 February 2009 : 13:29:25
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Ah.. that chears that one then, thanks for lettin gme know
Melanie
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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John
New Member
United Kingdom
73 Posts |
Posted - 23 February 2009 : 13:55:09
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Hi hammy
did the OR explain why the fee is set at £500 for a single owner?
This doesn't make any sense to me.
It won't be land registry charging extra as their fee is fixed, so it must be the solicitor.
I know you may not wish to rock any boats but why charge more than twice the fee for half the work?
Or is it the case that the OR / examiner will, in fact, be keeping the difference, £289, to put towards their own costs?
timendi causa est nescire
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 23 February 2009 : 15:47:06
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I'll agree with John here - I have never come across the fee being over the £1 each and £211 costs - the £500 figure is a new one on me...anyone else been quoted that?
I have never come across this before and have dealt with many many BI cases The standard fee is £1 (£1 each for joint owners) and a standard £211 for costs - this is a charge which was set by the Insolvecny service to administer the conveyance for the purchase of the BI and has not changed since it was introduced in the late 1990's.
I presume you are using the standard OR solitcitors and if that is the case go back to them and challenge - perhaps you have spoken with an inexperienced member of staff who has got the wrong end of the stick (it does happen!) please let both John and I know as this is very strange and i would love to know the outcome!
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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hammy0107
Junior Member
399 Posts |
Posted - 24 February 2009 : 16:39:39
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| Will do and will let you know. |
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wellerchic
wellerchic
135 Posts |
Posted - 24 February 2009 : 17:19:18
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Hi
If both my Husband and I are going Bankrupt would this mean that the fee to buy the BI would be £2 plus £211 or £2 plus £422?
You are are very helpfull and making me feel at ease with this situation.
G x
There is light at the end of the tunnel, hopefully I will find it soon !! |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 24 February 2009 : 17:51:06
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Hi Wellerchic...jury is out on this one until hammy0107 comes back with an update from the OR - both John and I have not come across this before and have actually clarified with an examiner today that the fee is still £211 costs and £1 to purchase beneficial interest no different fee if house is solely owned, so am perplexed at the £500 quoted to Hammy..
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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wellerchic
wellerchic
135 Posts |
Posted - 24 February 2009 : 20:01:58
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Thanks for the reply Melanie
G x
There is light at the end of the tunnel, hopefully I will find it soon !! |
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Crockett
New Member
68 Posts |
Posted - 08 March 2009 : 00:11:10
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Hi,
Did anyone ever get to the bottom of this one? I've had a letter today confirming my step-father can buy the beneficial interest for £1 as in negative equity but they also want a cheque for £473 for solicitors fees. I am sole owner of property but that is more than double the £211 I was expecting!!
Cheers |
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John
New Member
United Kingdom
73 Posts |
Posted - 08 March 2009 : 17:53:58
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Hi
after my previous post on this thread and after stating that I had not come across this before I did carry out some research of my own online.
It appeared that where there are joint or co owners in a property part of the associated documentation details each party's beneficial interest usually by alloting an even split percentage of the BI unless otherwise stated at the time of the new mortgage. If there is a variation from this equal split it is documented by way of a deed of trust. One or both of these documents are amended when BI is sold in bankruptcy.
It was therefore my understanding that where this only one owner it is the title deed itself that needs to be revised, for some reason. This deed does not usually need to be changed other than when the property is in sole ownership and so the previously expected figure of £211 + £1 doesn't apply. Having established this, albeit from a website which are of course prone to potential inaccuracies by the author, I took it to be fact.
But now having read Melanie n's earlier response in that she took advise from an examiner which contradicts the research and is in line with what we had both understood to be the norm prior to this thread being raised I am as confused as ever.
Perhaps Hammy and / or Crockett could be a good way for us to establish the exact position by politely raising the question with their respective examiner's.
John White
England Jackman & Spacey |
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hammy0107
Junior Member
399 Posts |
Posted - 10 March 2009 : 12:38:13
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Hi all,
Sorry i did forget t5o come back on this one.
I did ask whether there had been an error in asking for £500 and was told that because the house was solely in my name and it was my wife buying the BI then there was additional costs, in this instance totalling £500. Really didn't want to rock the boat or risk delays so i just took there word for it. I also read on another website that the £211 was only for joint owned properties or solely owned and habited. Sorry i can't shed any more light than that. |
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Crockett
New Member
68 Posts |
Posted - 10 March 2009 : 21:21:54
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| Queried with my OR and was advised that as my property was solely owned the solicitors costs were £473 as more work involved. Seems the £211 is only for jointly owned properties. Oh well at least I know the house will be sorted and to be fair to my OR office they have sorted this out very quickly as I went BR on 21 Jan, sent off my valuation and mortgage redemption statement last Thurs and had a letter Sat morning saying they were in agreement with the neg equity being bought by a third party. just have to come to an agreement about my IPA now, have been saving receipts for the last four weeks so fingers crossed. |
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Topic |
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Buying BI question? again!!!
