I have just heard today that the BI in my house can be bought for £1 plus fees. I understood the legal fees were £211 but they want a £473 cheque for the solicitors. I am sole owner of my house and a friend is purchasing the BI. Also does the cheque for the OR £1 and fees £473 have to come from my friend or in my name? I am very happy today realising I can stay in my home after a worrying time following a drive-by valuation. £473 is not a lot compared to what I thought they would want but still would like to query the amount if it is wrong. Thank you for all your advice over the past 8 months. Christine
the sum is spot on for a sole owner's BI to be purchased as it is not just a case of the trustees restriction being removed at land registry as with the £211 scenario. There is conveyancing procedure to follow in respect of the title deed as well.
The cheque should come from your friend, the purchaser.
Thanks John, Sorry, another question. Am I right in thinking my friend who is buying the BI does not have to earn enough to cover the total mortgage amount, it's only paperwork and the mortgage payments will still be in my name? Will my mortgage company be informed and will they be ok about this? Thanks. Still worrying about things....but getting there! Christine
the BI is not worth anything at present and even when it is in the future it cannot be realised by your friend unless you decide to sell. Of course I imagine that before that would happen, and post bankruptcy, you will transfer the BI back to you.
The lender is only interested in the sum secured against the property which remains unchanged throughout, as does your responsibility for the upkeep of the mortgage repayments.
So your friend will have no responsibility for the repayments and therefore does not need to qualify by virtue of income.
I have just heard today that the BI in my house
Posted - 15 May 2009 : 14:14:34
