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**Undercover Elsa** · 24 October 2013, 04:51

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

Hi Psg and welcome to AAD

I'll pm our nice housing expert PlanB to take a look at this. I'm sure she'll be able to help.
In the meantime I'm moving the thread to the Debt and Housing section which I think will be more appropriate.

Good luck,
Elsa x

**PlanB** · 24 October 2013, 10:32

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

Golly I hardly know where to begin with this because it is such a legal minefield. The bottom line is in theory your lender doesn't own the property anymore it's currently owned by the Receiver who can do what they want with it. Your lender simply has a mortgage over the property. You deal with them over payment of that aspect only since they are no longer the decision makers.

Having said that most Buy-To-Let lenders have a *hand back* team which deals with requests made by borrowers to return the property to them and they then liaise with the Receiver and make recommendations. The Receiver's role is to do what's best for the lender to recover their money, so if both the lender and the Receiver agree that you are the best person to do this (rather than sell it at auction with negative equity) then you're in with a chance. Who is your lender and do they have a *hand back* team? Paragon Mortgages (The Mortgage Trust) return 80% of their properties to the borrower usually after two years of good payment record.

The next bit of good news is that it is true that the FOS will investigate a complaint about a Buy To Let mortgage if the borrower is living in situ because that changes the product from an Unregulated loan into a Regulated loan (so they tell me). In fact only 40% of the property needs to be occupied to get their attention. So ring the FOS and register your complaint. They will send you a letter with a complaint reference which will tell you to complain to your lender first. When you make your complaint to the lender attach a copy of the FOS complaint acknowledgement letter to make them focus so they know you mean business

**PlanB** · 24 October 2013, 10:47

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

Originally posted by Psg2008 View Post

Dispite not being in arrears they are still trying to sell my property . . .

. . . . I have asked why have they taken this action in 2013.

I have made several complaints with the Financial Ombudsman Service since I have been informed that they can only assist with BTL mortgages if I am using it for residential use. (Don't know how true this is?)

^^^^ do you mean you have already made complaints to the FOS which have been rejected? I presume you made these complaints before you moved in which makes things different. Another possible quirk is the content of your complaint. For example if the mortgage was sold through a broker and you have an issue with the broker and suitability of the product or misselling etc. But the FOS should deal with a complaint about the actual lender's wrongdoing.

What makes you say they are trying to sell the property? Has it been listed for auction?

**PlanB** · 24 October 2013, 10:52

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

Originally posted by Psg2008 View Post

I have gone back to court to have the property reinvested in me by obtaining a vesting order.

I have absolutely no idea what that means. Are you saying that the property is no longer in receivership because that would change everything?

**PlanB** · 24 October 2013, 11:02

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

Originally posted by Psg2008 View Post

I have moved into the property in order to have the LPA receiver deinstructed and stop the last trespassers legal poceedings. . . . .

. . . . . My lender never acknowledges any of my correspondence until recently and will not give consent for me to live there.

Have you been successful in getting the LPA Receiver dis-instructed? Could that be a recent achievement which explains why the lender didn't acknowledge your correspondence in the past but has done recently?

By the "last trespassers legal proceedings" do you mean that they have sought to evict you as a trespasser relying on the case of Horsham Properties vs Clark and Beech which made that a legal possibility with BLT properties:

http://nearlylegal.co.uk/blog/2008/1...ce-intervener/

**PlanB** · 24 October 2013, 11:21

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

Originally posted by Psg2008 View Post

OPTIONS

Ideally I would like my lender to give me consent to live there. Or agree for me to rent the property ( each time I put tenants in the property they evict my tenant. This has occurred twice)

I doubt your lender would give you consent to live in the property because that would strengthen your legal rights and weaken theirs.

Your BLT mortgage contract already gives you the right to rent it and it doesn't give your lender the right to evict your tenants except while the property is in receivership. You need to clarify whether it is or isn't right now. Never mind what has happened in the past.

If they don't agree to above I would like the ability to remortgage my property at around 75%LTV but I need help finding a lender.

Not a chance with a recent BR on your credit file.

How can you remortgage at 75% LTV if you are in negative equity?

But this is only realistic if they do not apply on the arrears costs to my mortgage

Why shouldn't they apply the arrears' costs to your loan if they are genuinely due? Ask for a breakdown of them and then challenge them with the help of the FOS.

If they've charged for work which hasn't been carried out on the property (as you say) then obviously they can't add that to your loan.

I would even consider a short sale.

Do you mean you would will willing to sell the property for a sum less than your mortgage to get rid of the problem? If you did do that beware that the lender can still chase you for 12 years for the shortfall. However I agree it would be better for you to sell it then let the Receiver/lender dispose of it at auction which would create an even bigger shortfall for them to chase.

Can someone help me with some advice to try and resolve this problems and explore the options stated above

^^^^ I've given you my personal opinion not advice. I have had BTLs for years (decades) and all I can say is they are a long term investment and not a way to make a fast buck. If you have the ability to earn a living then why not hang on to the property (if your lender allows) until it grows out of negative equity. You say you need a home too. You are very young (I've peeped at your profile page) and your BR is now behind you. You have a future

I also think you need some solid legal advice on the whole Receivership angle before you decide which way to jump.

**Psg2008** · 24 October 2013, 11:47

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

Hi Plan B

Thanks for the advice. My mortgage lender is Capital Home Loans

I agree about the hand back process but this has not happened in this situation.

The receiver Alder King was completely unprofessional whilst they were instructed. And became increasely difficult when I started to ask them why almost £30k has been applied to my account in 2 years for work that never completed on the property. After 2 years they acknowledge the work had not been completed but gave me lots of excuses. My receiver has acting in bad faith in many different level but I don't know how to get any redress as they ignore my complaints

The receiver was deinstructed once I moved into the property as there was no longer any rent for them to collect and was not able to evict me via the courts as a trespasser

I believe the lender is full control as they are now taking me to court for breach of contract and permission to sell the property.

My complaint has been lodged with FOS and they are currently investigating. Last year they didn't do anything and sided with the lender. So I mildly optimistic.

**PlanB** · 24 October 2013, 11:51

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

Originally posted by Psg2008 View Post

I believe the lender is full control as they are now taking me to court for breach of contract and permission to sell the property .

Do you mean your lender has issued possession proceedings against you? The FOS may be able to get those put on hold while they investigate.

**Psg2008** · 24 October 2013, 11:56

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

I made a complaint prior to moving in and 6 months after occupying the property. Both complaints were not upheld. I have waited a further 6 months to make another complaint which is currently being investigated.

The legal proceeding I am having with the lender states that they want full possession and an order of sale bases on the fact that I live at the property and that I breeched the contract 3 years ago.

The receiver initially 2 years ago stated that he wanted to sell the property via vacant possession. Hence the reason why they evicted my tenant. My tenant was not in arrears and my mortgage account was in credit of £3k

I also got a letter from the Managing Director when I have written to him directly asking him why does he want to sell my property if I am not in arrears. I have asked on numerous occasions for different options. Eg going on repayment mortgage product, paying lumpsum to the advance, increase in monthly payments etc. All have been turned down

**Psg2008** · 24 October 2013, 12:00

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

Sorry I was a bit vague with this this statement.

When I was discharged my bancrupcy. My bancruptcy trustee disclaimed interest in all my assets. But I had to apply to the crown to have my legal rights reinstated to myself by obtaining a vesting order.

**Psg2008** · 24 October 2013, 12:09

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

Hi Plan B. What I have told by the lender that they were not obligated to respond or acknowledge my letters whilst the property was under receivership. Despite asking for consent to move into the property by I physically moved into the property.

The receiver told me that they were going for vacant possession rather than obtaining a court order in the beginning. That was one of my main reason for moving in so this could not explore this route. I kept on asking why but they would not answer my exits directly as saw this as the best exit strategy

The receiver was deinstructed when there was no rent to collect so I am assuming in was not in there financial interest to continue. Especially when I was making a riot about their conduct.

I not sure if they relied on this argument specifically but this is the course of action they took as they knew I was living there with my family

**PlanB** · 24 October 2013, 12:30

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

Originally posted by Psg2008 View Post

My mortgage lender is Capital Home Loans . . . .

My complaint has been lodged with FOS and they are currently investigating. Last year they didn't do anything and sided with the lender.

Capital Home Loans is a mortgage intermediary. They don't lend their own money. This could explain why the FOS didn't accept your complaint last time. In what way did the FOS "side with the lender"?

I'm surprised CHL don't want your business since they've just announced their launch back into BTL lending having been a closed book lender since 2008.

http://www.mortgagesolutions.co.uk/m...to-let-lending

If you've had a letter from the MD what does it say? If you're not in arrears why would they want to sell your property? Has there been a personality clash going on or something like that which has created this negative attitude of theirs? I often feel it pays to grovel to get what you want how ever insincere. I'd be playing the "wife and children" card right now if I were you.

**Psg2008** · 24 October 2013, 12:30

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

I asked if I could rent the property. However I keep on being told that this will not stop them for continuing with their legal proceedings to obtain possession and an order of sale.

They have not said no but they have said yes neither. I feel it would not be right to put potential tenants into this situation.

Thanks for confirming that I can't get a mortgage as I have contacted a lot of mortgage advisers/brokers but have been unsuccessful. Do you think I can get a mortgage at 60% LTV

My family stated that they would assist with the shortfall of the advance as the property used to make in excess of £700 net profit per month. This is the main reason why I have been trying to hold onto it.

I know the shortfall should go into my bancrupcy estate. But I was exploring this option as one of my family relatives wanted to buy the property but not at its current price

i have gone through at least 25 solicitors. Paid thousands in legal fees and not got anywhere. I understand because of my situation and because its a BTL contract. Many solicitors don't know how to deal with this.

I still haven't found anyone that has given me any confidence and the last solicitor informed me that I have 50% chance as it is non regulated contract.

Despite the history. The have been advised the strongest argument I have in front of the judge is to make a human rights argument. As I live there with my family and I am not in good physical health

Thanks for the compliment about being young. I think I have aged rapidly in the last couple of years. I regret that I did not fight for other assets that I lost via vacant possession. So I am trying to hold onto this one

**PlanB** · 24 October 2013, 12:41

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

Originally posted by Psg2008 View Post

i have gone through at least 25 solicitors. Paid thousands in legal fees and not got anywhere. I understand because of my situation and because its a BTL contract. Many solicitors don't know how to deal with this.

I still haven't found anyone that has given me any confidence and the last solicitor informed me that I have 50% chance as it is non regulated contract.

Despite the history. The have been advised the strongest argument I have in front of the judge is to make a human rights argument. As I live there with my family and I am not in good physical health

Maybe you need to get your situation adopted by a specialist lawyer such as Hodge Jones & Allen who are fighting on with the Heathrow Squatters case using Article 8 of the Human Rights Act.

http://www.hja.net/legal-news/hja-ne...squatters.aspx

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