BI in BR

[pippa]

Hi Guys

Not sure if I asked this question before during one of my manic/stressed periods [:I], but has anyone had first hand experience in BR where a relative/friend/partner has bought the BI in their property. I am still waiting for confirmation of what the OR will set this amount at, but wondered if there is any room for negotiating or is it a fixed amount that must be met.
Also as certain things would come up in a survey on the house, would they take into account any estimates I/my parents had done, just not sure parents will be able to come up with the absolute maximum that it could be set at might be a bit beyond them. Just hoping for some advice

Thanks

Pippa

[mikebdomain]

The OR will look at an independent valuation of the property which should include recent comparables of properties sold in the area. Bear in mind the BI is calculated taking into account all secured borrowing and other interests on the property. So the amount set should be a realistic figure.

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[MelanieGiles]

Very little room for negotiation, Pippa, but you can get your own valuation and argue the difference.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
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[pippa]

Thanks both

I have had another valuation done as requested, not heard anything yet as to what form of valuation the OR will do. Not wanting to put too much pressure on my parents although they are insisting to help out. As the house needs so much still doing to it and I will not be in a situation financially for some time to do the work, I am not sure its worth the worry for them.

Pippa

[fudge34]

When you say other interests does this count our early mortgage penalty which is according to my statement 5,300 if we were to move or end our mortgage early? thanks!

[MelanieGiles]

Yes - the mortgage penalty is taken into account in the equity calculation.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp