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Nicola-mod
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Category: Bankruptcy Law
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If a third party was interested in buying back the beneficial

Customer Question

If a third party was interested in buying back the beneficial interest of the portfolio how long would this take.
We tried to do an IVA which failed so all the information is there. We even had professional valuations done on five of the properties as this was required – as a whole they came back as negative equity.
Once bought back from the OR would the rents then still be part of the bankruptcy?
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  leanne-jones replied 3 years ago.
Hello - my name is Leanne and it will be my pleasure to assist you today.

This could be quite quick - it really depends on how fast Solicitors would carry out the work. It could be a few weeks. Once the title was purchased then the OR would not be entitled to rents. But the proceeds (if any) from sale would go to the OR.

Leanne.

Customer: replied 3 years ago.

When you say title, what do you mean. the third party we have is only interested in the beneficial interest, that being the equity if any, between the mortgage and value - would the property not stay in our ownership?

Expert:  leanne-jones replied 3 years ago.
He can buy the equity yes - this would be allowed. But generally the mortgage would need to be transferred to him too. This is because a bank is unlikely to allow a third party to have title as well.

In theory you can - but in reality it may be hard to do. Leanne.

Customer: replied 3 years ago.

Why would the mortgage need to be transferred to him? This wouldn’t be possible as the mortgage company would not allow it.


 


If the third party is happy for the mortgages, and the title, to be left as they are would this work?


In practice he is only interested in getting the equity from the rents if any.


 

Expert:  leanne-jones replied 3 years ago.
Because he can not own the beneficial interest because if the bank wanted to repossess and claim the equity they could not.

You would need their permission. It makes no difference whether the third party is happy as I am sure he is. You must have permission of the mortgage company. Otherwise they will not consent and you could not transfer it. I am sorry. Leanne.

Customer: replied 3 years ago.

Sorry I'm a bit lost. Probably becuase I've had a bad day so my fault


I don't want to transfer anything, I want to leave everything as is and third party also wants to leave everything as is. Are you saying this is not possible?

Expert:  Nicola-mod replied 3 years ago.
Hello,

I'm very sorry but leanne-jones is no longer available to answer questions. I've been working hard to find another Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Nicola

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