Purchasing Beneficial Interest - will mortgage and secured loan companies agree?

[e-o-j]

My partner was declared bankrupt last December. There is no equity in our jointly 'owned' family home due to secured lending and drop in value. The OR has agreed I can purchase the Beneficial Interest for £212 (£211 solicitors fees and £1 nominal fee). So far so good. However, I understand the mortgage company (C&G) and other secured lenders, Nemo (secured loan) and Lloyds TSB (all monies charge) have to agree to this, and am concerned they may object to this. We've kept up payments of mortgage (although moved to interest only) and secured loans, but the total value would be too much for me to be lent on my own.

 

Is it the case that the mortgage companies have to agree for me to be able to purchase the beneficial interest?

 

How do mortgage companies and secured loan companies typically react in this situation?

 

Can this be avoided by my partner (who was declared bankrupt) purchasing the beneficial interest herself? Is this possible?

 

I'd really appreciate some advice. Thank you.

[debtinfo]

Hi, purchasing the equity is not the same as transfering the mortgage, The mortgage stays in the same names as before, it just means that when a situation occurs where there is equity, the whole of the equity is owned by yourself, It is nothing to do with the mortgage company

[e-o-j]

Thank you. I think I am getting confused, only the advice I've received from a solicitor is that the lenders need to agree to my partner's name coming off the deeds (even if it stays on the mortgage). Is this correct?

[debtinfo]

Hi the name does not come of the deeds, just that when it is sold they do not receive any equity, The solicitor is obviously confused, he prob usually only deals with property tansfers not bankruptcys.

[jas1008]

i am in a similar situation where my ex husband went bankrupt in January and i have just been offered to buy his beneficial interest for £212. We also have a secured loan on the property . if i purchase his beneficial interest will he stop being being liable for his half of the loan?

[e-o-j]

I am not an expert but believe from my own experience that you will both still be liable to pay the secured loan in full regardless of bankruptcy. Good luck. I know what you're going through.

[jas1008]

many thanks e o j, this has been a nightmare, my ex is refusing to pay anything towards the loan although it was taken out at his instigation.

I just hope that somebody out there in cyberspace can give me some sound advice ......

[debtinfo]

buying the BI is onl about buy ing the right to any proceeds when the property is eventually sold. It does not change the liability for paying the mortgage.

 

If you are going to keep the property and you are going to live there on your own you need to be able to afford the mortgage and secured loan. If you cant afford it then you cant carry on living there in the long run

[Dodgy Geezer]

We also have a secured loan on the property . if i purchase his beneficial interest will he stop being being liable for his half of the loan?

 

No. Only unsecured debts are discharged. Secured debts are simply that, secured against the property.

 

You need to get proper legal advice.

[jas1008]

many thanks for your replies