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[Angeleyes]

Hi, I am a discharged bankrupt along with my husband. We have been given the opportunity to buy back the beneficial interest in our family home. The OR has advised we each have £656 equity. Can we make an offer for this amount or foes it need to be 1k minimum each? The OR has already said that we will have to pay the solicitor fee of £211 as well so we want to know if we can keep the other costs down.

[Geraldine]

Hi there Angeleyes

I believe that you will have to offer the OR a minimum of £1000 each or they will have to hold on to the beneficial interest for the full 2 years and 3 months. The rules on this changed in at the end of 2010. Prior to the end of 2010 you could have made an offer to the OR which then would have been able to accept. However now they are obliged to wait for 2 years an 3 months unless you can offer the full £1000 each.

[Angeleyes]

Thanks for your reply Geraldine. I have been reading other forums and I have read that the OR would accept an amount equal to the amount of equity that the OR has agreed so now I am a bit confused.....

[Steve Jackson]

Hello Angeleyes

Geraldine is actually not quite right here. The rule change in January 11 means that you can now buy back the beneficial interest in your property at any time but as you have read you have to pay an amount equivalent to the amount of equity in the property at the time to do so plus the solicitor's fees. As such you should be able to pay 2 x £656 + the solicitors fees to buy back your beneficial interest.

If you value your property and it is in negative equity that is when you would need to offer the OR £1000 to buy back the beneficial Interest. You pay £1000 to compensate the OR for the possibility that they would get more if you do nothing and wait for 2 years and 3 months when the property is revalued.