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Housing
Senior Member
United Kingdom
1399 Posts |
 Posted - 08 January 2010 : 14:43:38
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Hello again,
Ask your mum to speak to the member of staff at the ORs office and say she is not going to instruct a solicitor - that should be fine. She must do it though, not you.
Hope this assists, Richard
"Life is generally something that happens elsewhere" (Alan Bennett - author and hero of mine!!) |
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madness12
New Member
United Kingdom
52 Posts |
Posted - 08 January 2010 : 15:49:25
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OK - There is something not right here then. Mum has called and spoke to the O/R and they have stated she does have to have a solicitor and no progress will be made until they have the details. So it sounds like the process may have changed, so for future reference to purchase the B/I you do have a solicitor, so we will have to play the game and pay the fee! to finalise the matter.
S Thomas |
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madness12
New Member
United Kingdom
52 Posts |
Posted - 08 January 2010 : 21:14:01
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OK, so we now know we need a solicitor our concern is now do we have to inform the mortgage lender and does my mum who is purchasing the B/I need to be on the mortgage or have a complete new mortgage and do we remain the owners of the property with mum being an interest finanically in the property. Can someone please explain the process when someone buys the B/I but is not who already in on the deeds. It seems all too complicated and no one seems to know of a case when the purchase of the B/I is not already on the deeds.
S Thomas |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 08 January 2010 : 21:38:06
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This seems very strange - I know someone who bought the BI in her home recently (hubby was BR) and she didn't need a solicitor.
It would be worth you speaking to an expert a call about this - there are details of those who post on the forum in the experts section at the side of the page.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
30 IPA payments made, 6 to go - the end is in sight! |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 08 January 2010 : 21:49:53
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Hello again,
I hope that this may assist:
Property and your home
If you own property then this might be sold depending on whether it has any equity (value) in it. If your partner and children live there then the sale can be delayed for 12 months to give them time to find somewhere else to live.
Once you have gone bankrupt your interest in your home is transferred to the Official Receiver or trustee. This enables them to sell the home.
If you are the sole owner then the whole of the value of the property is transferred to the Official Receiver or trustee.
With jointly owned property the Official Receiver is usually only entitled to the bankrupt person's share of the equity. This is called your "Beneficial Interest".
Depending on your circumstances, you may be considered to have a "beneficial interest" even if you are not named on the mortgage.
It may be possible for the joint owner or family and friends to make an offer to the Official Receiver to buy out your share of the equity. This is particularly helpful if there is little or no equity
It is very important that your beneficial interest in your home is bought out as soon as possible or the Official Receiver may be able to sell the house, even if you have been discharged from bankruptcy.
If someone is willing to buy your beneficial interest in the home they should contact the Official Receiver or the trustee who is handling your bankruptcy. The Insolvency Service runs a low cost conveyancing scheme to organise the transfer of your beneficial interest to someone else.
There are various fees to pay to cover the costs of this. You will also have to agree with the Official Receiver how much your beneficial interest is worth before this can go ahead. If there is negative equity or no equity in the property then the value of the beneficial interest can be set at a minimal amount of £1.00. For details of this scheme there is a leaflet called "What will happen to my home?" available from the Insolvency Service.
If you cannot save your home through someone buying out the Official Receiver's interest, the property is likely to be sold.
If your home has very little equity in it (up to a set level of £1,000), then the court will not be able to order a sale or put a charging order on your property. They still have up to 3 years to see if your house has risen in value and is worth selling. Try and come to an agreement with the Official Receiver over your beneficial interest as soon as you can to avoid this happening. Phone us for advice.
If you have a mortgage or secured loan on the property the monthly payments still need to be maintained to stop your lender taking possession action.
New rules from April 2004
If you went bankrupt before April 2004 then it was the case that the Official Receiver could come back at any time in the future and sell your property. This has now been changed. The Official Receiver has 3 years from 1 April 2004 to deal with their interest in your property. After this date, if no action has been taken, your home will belong to you. This will apply to you if you are already bankrupt on that date or are made bankrupt in the future.
The Official Receiver will have these options:
1 Come to an agreement with you about the property
2 Sell your home
3 Apply for an order for sale
4 Apply for a charge on your home.
This means that you should not be left with the possibility of the Official Receiver coming back years after your bankruptcy has ended, wanting to sell your home unless a charge is placed on your home. In this case the Official Receiver has 12 years to ask for an Order for Sale.
I hope tha above assists - I still believe the matter (which is simple in conveyancy terms) can be done simply by the OR using their solicitor and your mum responding to standard questions and then it can complete.
Again, good luck Richard
"Life is generally something that happens elsewhere" (Alan Bennett - author and hero of mine!!) |
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madness12
New Member
United Kingdom
52 Posts |
Posted - 08 January 2010 : 22:10:21
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From what I understand you have to have a solicitor when the person buying the B/I is not 1 of the names on the mortgage...I.E both my husband and I went B/R and the mortgage is in joint names so my mum offered to purchase the B/I but this has to be completed with the use of a solicitor but that I haven't got a problem with its what happens to the property and the mortgage etc...Do we need another mortgage in my mothers name..No one seems to know when the person buying the B/I is not mentioned in the property currently.
S Thomas |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 08 January 2010 : 22:29:32
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As I said earlier, it would be worth you speaking to an expert about this. Try Paul at Reviva or Melanie at Jones Giles, they will be able to help you.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
30 IPA payments made, 6 to go - the end is in sight! |
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madness12
New Member
United Kingdom
52 Posts |
Posted - 08 January 2010 : 22:33:32
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Hi - Have already spoken to Melanie she said she has never known of a solicitor needing to be used, but our O/R is insisting and with my mother buying the B/I just need the advice so we know what to expect.
S Thomas |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 08 January 2010 : 22:37:22
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In that case it might be worth going back to the OR's office and speaking to someone else. It's not unheard of for an examiner to get things wrong, the same as in any other job.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
30 IPA payments made, 6 to go - the end is in sight! |
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madness12
New Member
United Kingdom
52 Posts |
Posted - 08 January 2010 : 22:59:58
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We have spoken to more than 1 person already the reason for the solicitor is due to a third party buying the B/I. I understand that all we my husband and I want to know is what happens with the mortgage do we need to contact the current lender and is my mother buying the whole property or will we still be classed as the owners!.
Someone must have come across something like this already!..friends and relatives are able to purchase the B/I, not just spouse and partners.
S Thomas |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 09 January 2010 : 13:31:54
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Hi again,
Not sure if I mentioned this, but my wife has just purchased the BI in our principal home and she did not use a solicitor and TLT, (The ORs solicitor) were perfectly happy with that.
So, that should be good enough for the ORs office that is dealing with your bankruptcy - of course, do not alienate yourself from the OR, but simply get mum to say she does not need a solicitor, it is only a one page Deed of Assignment with three signatures on it - the ORs, your mum, and a witness - it is not a complex matter at all.
My wife is also buying the BI in our Buy to Let property - she has had to pay a few thousand on that as the valuation has increased since my BR - again, no solicitor on my wifes part and that is going through too. I have to say they are taking several months from starting the process to completion - your mum has nothing else to be concerned about.
I hope this assists and wish you well. Richard
"Life is generally something that happens elsewhere" (Alan Bennett - author and hero of mine!!) |
Edited by - Housing on 09 January 2010 13:32:29 |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 09 January 2010 : 13:37:42
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As no-one on here seems to have come across this, and Melanie (who worked for the OR's office) hasn't either then I would ask to speak to someone with more authority at the OR's office.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
30 IPA payments made, 6 to go - the end is in sight! |
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madness12
New Member
United Kingdom
52 Posts |
Posted - 09 January 2010 : 21:05:15
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Hello Again, When my mum called and spoke to the O/R she was told as she was not already on deeds only myself and my husband it she would need a solicitor as this is a conveyancing issue. I am so confused that no one else come across this before. The mortgage and deeds are in mine and my husbands names we both went B/R so we were told that a family member or friend was able to buy the B/I but only now have we been told we need a solicitor, we are not able to processed without one, and we have to contact our mortgage lender to see if they will allow my mum to be added to the mortgage or maybe even apply for a new one...This all seems far too much hassle and we both feel like telling the O/R have the house and walking away!
S Thomas |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 09 January 2010 : 21:28:00
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It's very unlikely that you or your mum would have spoken to the actual OR, as they only deal with serious cases. You would have most likely spoken to an examiner, which is why it would be worth asking to speak to someone higher up.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
30 IPA payments made, 6 to go - the end is in sight! |
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debtinfo
forum expert
2826 Posts |
Posted - 09 January 2010 : 21:30:34
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| Why dont you just have your mum provide the funds so that you buy it back yourself, problem solved |
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