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madness12
New Member
United Kingdom
52 Posts |
 Posted - 02 January 2010 : 09:34:48
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| Help someone - We are nearly at the end of our bankruptcy with the benefical interest on the property being funded by my mother, she has received a letter from the solicitor we suggested she used telling her....She is purchasing the property and that she will need a mortgage or to ask our current provider if they will allow us to live at the property with the mortgage being transfered in to her name...This has scared the life out of her...Is this true, I thought she would buy the benefical interest and we would carry on as normal and at such time we were to sell the property she would benefit from a dividend. |
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debtinfo
forum expert
2826 Posts |
Posted - 02 January 2010 : 09:44:31
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| I think your solicitor has got the wrong end of the stick and is treating it as a normal property transfer. You need to talk to him and explain the situation. |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 02 January 2010 : 10:23:29
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I agree with debtinfo.
It seems your legal advisor is not up to speed on the transfer of the BI.
Good luck, Richard
"There are no problems - only solutions..." |
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madness12
New Member
United Kingdom
52 Posts |
Posted - 02 January 2010 : 10:49:58
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So, do I tell my mum not to worry - So am I correct in saying that my mum is buying the BI with no need for the mortgage arrangements to be changed? ie me and my husband as the owners with my mum as a trustee which would be added to the deeds? This solicitor has really confused us all and scared us too!.
Also how do I explain to them? - do you have a firm you recommend in Hampshire?
S Thomas |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 02 January 2010 : 12:35:30
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Hi again,
Thew BI is explained as follows:
It is your interest in the proceeds of sale of the property as opposed to the legal title to the property which is held by the owner. If you are the sole owner, the beneficial interest is the whole value of the property. If there are joint owners, the beneficial interest is usually an equal share of the value. (If there are any amounts owed on mortgages or other loans secured on the home, these will be repaid from any proceeds of the sale.)
The purchaser of the BI (your mother in your case) will also have to give the Official Receiver up-to-date details in writing of the amounts which would be needed to fully pay off the mortgage and any other charges on the property.
Your lender may have to agree to the purchase - again, your legal adviser should deal with this for you.
I am afraid I do not know any firms in your area and, in any event, I cannot make a recomendation. Your mother is best advised to clarify the procedure with her adviser. She could speak to the OR in general terms for the process - although the OR will not be able to give legal advice to your mum or to you.
I wish you good luck, Richard
"There are no problems - only solutions..." |
Edited by - Housing on 02 January 2010 14:47:33 |
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madness12
New Member
United Kingdom
52 Posts |
Posted - 02 January 2010 : 13:25:24
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I am really confused now, so my mother is purchasing the property and me and my husband will be tenants, what would happen if our mortgage lender wasn't happy with the transaction...We may as well let the O/R have the property and walk away...We have not been explainned any of this and my mum I don't think will be willing to do this...Its a big thing to have a mortgage again at her time of life!..None of the leaflets we have been given tells you any of this.Benefical interest to me is just that not buying the whole property.
S Thomas |
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John
New Member
United Kingdom
73 Posts |
Posted - 02 January 2010 : 13:46:22
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Hi
as is usually the case, in the conveyance of title both the seller (OR) and the buyer (your Mum) would have solicitors handle the legal side of things.
Each party must have their own solicitor so as to avoid a conflict of interest occuring which could be the case if the same solictor were chosen by both parties.
Similarly, in the transfer of BI, the OR's solicitor cannot represent your Mum and would usually write to the purchaser of the BI stating as much and inviting her to seek her own legal representation.
In my experience she does not need any and it's largely money down the drain. And clearly, in this case, the appointment of the solicitor has only served to confuse the issue.
If you prefer to continue with this solicitor try and explain as best you can but also ask if he/she is familiar with such work. If you are not satisfied that the solictor has a grasp on what is necessary then ditch them before you incur any further costs.
Whether you engage a replacement solicitor is your choice. All that would usually happen is once the OR's solicitor (TCT I believe, or at least that's who they have used in the past) receives the funds from Mum the Land Registry is notified by TCT and within a few weeks the Register is changed and your Mum notified, job done.
John White
Independent Debt Consultant
Specialising in Bankruptcy |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 02 January 2010 : 14:46:38
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Hi again,
Please do not stress.
I am sorry if I made it sound difficult, it is not a difficult matter, I can assure you.
I agree with John who posted after me - in essence your mum does not need a solicitor. I think that the solicitor she has instructed is a "Bog standard" high street solicitor who may never have dealt with the transfer of a BI. As john has said, tell your mum to get rid if they cannot deal with this simple matter before she incurs costs.
I hope this assists and your mum need not worry about the process. Good luck and I apologise if I made it sound confusing! Richard
"There are no problems - only solutions..." |
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madness12
New Member
United Kingdom
52 Posts |
Posted - 02 January 2010 : 14:47:57
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Hi John,
Thank you for your explaination, I think I kind of understand now. So to claify can my mother purchase the BI without having a solicitor?, if she writes to the O/R confirmaing she is purchasing the BI and how they require thew funds would that be sufficient for them to proceed? Also the £211.00 that you hear so much about is that the whole amount for the O/R legal costs or is it per person as the property is in joint names. As again the leaflet fails to explain in laynames terms...ie...idiot for some of us!.
S Thomas |
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debtinfo
forum expert
2826 Posts |
Posted - 02 January 2010 : 15:01:17
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| it is just (1 fee of £211) + £1 each for your respective interests |
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madness12
New Member
United Kingdom
52 Posts |
Posted - 02 January 2010 : 15:30:31
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That is fantastic news, so we do not a solicitor..My mum just needs to write to the O/R confirming she is purchasing the BI and how they would like the funds, IE cheque or transfer...once all received and ok they notify the land registry and mum's name is added?. Once this is all complete is the house all finished with?, also do you know how quickly we will be discharged, I believe the house is more or less the final phase 
S Thomas |
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debtinfo
forum expert
2826 Posts |
Posted - 02 January 2010 : 15:34:41
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There are a couple of forms that the OR's solicitor will ask you to fill in or sign. When the time comes you can just come and ask on here. The OR just asks if you want your own legal representation to give you the opportunity, so you cant say you were ripped of later.
The house has nothing to do with discharge and will go ahead regardless of if the house is finished or not. Expect to be bankrupt for a year, if you get an earlier discharge it is a bonus |
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madness12
New Member
United Kingdom
52 Posts |
Posted - 02 January 2010 : 20:47:37
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Cool - So I will tell my mum to send a letter to the O/R stating she is purchasing the BI then wait for further corrospondence. So who decides if you are discharged early, only I have seen on the forum some people have been discharged in 5-6 months. Thank god for this forum you have saved my mum a fortune!.
S Thomas |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 02 January 2010 : 20:57:27
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Hello Sue
Glad the concept is now clear - if it was me that made it a bit clumsy to follow earlier, I am so sorry.
Anyway, now you should be on your way now to get one barrier out of the way
As regards to early discharge, this is very much a bonus and the term is 12 months normally. It is true that there have been many many EDs this past year - I suspect this is due to the volume of BR cases - the ORs are swamped up and down the land - Thank you Mr Brown!! (Sorry, I had to say that - delete if it offensive!)
I know of people who have been ED after 4/5 months and more after 6 months. I suggest that you co-opearate with any questions you are asked by the OR examiner and their admin staff and if you do get to be discharged early - it is a bonus!!
I do wish you luck - post back if you need any more comments to assist you and your mum on the BI. Richard
"Life is generally something that happens elsewhere" (Alan Bennett - author and hero of mine!!) |
Edited by - Housing on 02 January 2010 20:58:48 |
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debtinfo
forum expert
2826 Posts |
Posted - 02 January 2010 : 20:58:30
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There are several factors
1) the OR decides if you have done anything before bankruptcy that would bar you from ED. IE something a bit wrong but not wrong enough to be taken any further
2)next is if you co-operate fully with the OR during your bankruptcy.
3) presuming you get past the first two you are eligable for ED. from that point on the ED process will start when all of the OR's investigations are complete (not all assets realised) ie they have checked your story to their satisfaction. At this stage something as simple as waiting for a response from your landlord could hold things up.
4) when the investigations are complete the OR will send a letter to all creditors and the court to see if their are any objections from them. These must be valid objections with info the OR does not already know about (ie something you forgot to mention to them) not just the fact that you owe them money.
5) The OR allows a certain eriod for these objections and if non are received they will process the application for ED.
It should always be noted that ED is at the discression of the OR and so if they just have a lot of other work on they could just shelve the ED work as it is not at the top of the priority list |
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madness12
New Member
United Kingdom
52 Posts |
Posted - 08 January 2010 : 14:26:11
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Help is needed again....My mother has today received a letter from the O/R regarding the benefical interest on our property and the letter states they require the solicitors details to progress the matter I then called the O/R who confirmed we DO need a solicitor to progress this matter can someone please help me here as I'm really confused and this a cost we can do without!. 
S Thomas |
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Help someone -
