Landlord not paying mortgage on property I am renting

[PlanB]

Re: Landlord not paying mortgage on property I am renting

I've got all that now. It was the size of the documents which slowed things down.

Having read the papers I can see that there is a repossession hearing listed for 10 am on the 22nd of April (i.e. next month).

Your Landlord has known about this possibility since 2nd December 2014 when the initial paperwork was served on her and she signed for it.

The last mortgage payment she made was August 2014 which looks like your rent has never been used to pay the mortgage (your tenancy began in October 2014). She rented the property to you knowing it might be repossessed and you would be evicted. I hate this woman.

Either the Landlord has kept the rent for herself (and not paid the mortgage) or the agent has not passed on your rent (did you say you paid it to the agent direct?). I expect this is a Landlord issue.

Your Landlord lives in Northern Ireland so is unlikely to bother to turn up for the hearing (that's my guess not a fact) which means the repossession will go ahead undefended. Sadly the next step would be for the mortgage company to seek to evict you and your son.

The amount of the arrears is small at only £1,147.77. If the Landlord paid those arrears before the hearing on 22nd April then the property would not be repossessed. It's as simple as that. Can the agent persuade her to pay up before then?

When is your rent due and how much do you pay (if that's personal then email it to me)?. Sometimes the Tenant can pay their rent direct to the mortgage company to prevent repossession. It can be written into a suspended possession order too. At least that's in England and Wales.

I'm not suggesting that you should pay off those arrears for your Landlord but at least ask a lawyer whether there is a way for you to 'negotiate' with the lender so you can remain in the property. I would mention right away that you are interested in buying the property off your Landlord. Normally I suggest doing things in stages but in this case I think the way forward is to throw everything at it at once.

My immediate advice is you should ring Shelter's Scottish Helpline as a matter of urgency to get some free legal help. They will know your rights as a Tenant and may even offer to contact the lender's solicitors to broker a deal to avoid that court hearing.

Shelter Helpline 0808 800 4444

I would also have a full and frank talk with the letting agent. Tell him you're interested in buying the property and ask him if a deal can be done.

It would be wrong of me to suggest you did anything reckless, but ask yourself whether paying any more rent to the Landlord or the Agent may be a waste of money? The worse case scenario is you and your son will have to find a new home and the Landlord can whistle for her rent. Double-check everything with Shelter.

Plan B xx

[PlanB]

Re: Landlord not paying mortgage on property I am renting

I should also say that I know the lender - I have a mortgage with them too (I'm a Landlord for my sins). They are extremely ethical and sympathetic to Tenants' issues. They only provide Buy-to-Let mortgages so they are familiar with the anguish caused to Tenants by unscrupulous Landlords.

Plan B x

[PlanB]

Re: Landlord not paying mortgage on property I am renting

I've got your email about buying the property.

According to the legal paperwork the outstanding mortgage balance is £108,666.87. That is what is needed to clear the loan so the mortgage company will not want to accept anything less at this stage. They will want the money back which they lent.

A lot depends on the value of the property. If it's worth £108k or more then the lender will want to try to achieve that figure on the open market in preference to accepting a lower offer from you. In fact they have a legal duty to obtain the "best price" if they repossess the property and sell it because they will chase the Landlord/mortgagee for any shortfall for years to come.

Sorry to sound so negative xx

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

I have emailed you the first letter i got through, when i contacted the letting agent they said they would deal with it, I didn't need to do anything.

When i moved here the place was very grubby and i paid £650 to have it painted, laid 2 new bedroom carpets and bathroom linoleum another £300 put in bathroom fittings, toilet roll holders, shower heads £100, new blinds fitted to all windows £140.... i am a landlords dream! i just wanted to feel at home and not living in some grubby place with my son...

The letting agent told me i just had to continue to pay my rent in line with my agreement, they just pass the money on to the landlord and she is responsible for paying the mortgage.

The landlord definitely owns a few round here as the postman said he had delivered quite a few of the same letters on Saturday morning.

i will put on the blog the email info sent to me by the letting agent today.

Just what i need right now!!

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

My email conversation with the letting agent today....


Subject: Extention to Lease

Hi Letting Agent,

Further to your letter of last week.

I was hoping to extend my lease agreement for this property.

Could you please advise can I still do this.

Brgds




Hi Milliesmadmoth

Thank you for the correspondence regarding the above mentioned property.

At this stage your lease can be renewed on a month to month basis on the understanding that the property will be taken back at some point.

Alternatively, we now have another property available at No 96 MV – 2 bed, ground floor – available long term – would you like to have a look at this? Please advise and we shall arrange a viewing for you.

Kind regards




Hi Letting Agent

Could you please confirm if I am still covered with a secured tenancy agreement?




Milliesmadmoth

Your current lease expires on 30th April 2015. After this date the lease will only be extended on a month to month basis therefore will not be a secured tenancy agreement.

Do you have any thoughts on 96 MV? This property is available to view now for long term let.

Kind regards




Hi Letting Agent,

If only I replied to your letter the day I got it I would have then been secured.

As you know I have done and spent a lot on this property to make it fresh and clean for the time which I was going to spend in it.

Brgds




Hi Milliesmadmoth

Given that court proceedings are not due to commence until April, it may well take many months before anything actually happens.

If you wish to continue with the tenancy after 30th April 2015 you may do so on the understanding we are unable to give any guarantee as to the length of any extension other than month to month.

Kind regards

[PlanB]

Re: Landlord not paying mortgage on property I am renting

I'll do my best to help you sort this.

When is your next rent due date and how much?

Did you also pay a deposit and how much?

Was your deposit placed into an official bonded or insurance scheme?

Have you got receipts for all the works/improvements you did to the property?

I'm intrigued to learn that the Landlord owns quite a few properties in the area which 'may' also have repossession issues. Your postman is a mine of information. I've been made aware of a scam (mortgage fraud) in the area so I'd like to check that out. It may have nothing to do with your situation but knowledge is power.

I've got your email with the letter from the solicitor (for the lender) but no covering letter from your letting agent. Can you name them please.

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

I've got your email about buying the property.

According to the legal paperwork the outstanding mortgage balance is £108,666.87. That is what is needed to clear the loan so the mortgage company will not want to accept anything less at this stage. They will want the money back which they lent.

A lot depends on the value of the property. If it's worth £108k or more then the lender will want to try to achieve that figure on the open market in preference to accepting a lower offer from you. In fact they have a legal duty to obtain the "best price" if they repossess the property and sell it because they will chase the Landlord/mortgagee for any shortfall for years to come.

Sorry to sound so negative xx

Never in a month of Sunday's will they achieve anywhere near £108k, 2 floors above sold for £60k 2 months ago! Others on the development have sold for similar prices.

I actually feel sorry for people who bought property in the boom, woman 1 floor up is trying to sell hers for £104k fixed price.

Owners who cannot sell and want to move are just renting them maybe hoping the market will improve.

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

I'll do my best to help you sort this.

When is your next rent due date and how much?

Did you also pay a deposit and how much?

Was your deposit placed into an official bonded or insurance scheme?

Have you got receipts for all the works/improvements you did to the property?

I'm intrigued to learn that the Landlord owns quite a few properties in the area which 'may' also have repossession issues. Your postman is a mine of information. I've been made aware of a scam (mortgage fraud) in the area so I'd like to check that out. It may have nothing to do with your situation but knowledge is power.

I've got your email with the letter from the solicitor (for the lender) but no covering letter from your letting agent. Can you name them please.

Thanks Plan B

Rent is £450 per month, next one being due April, it's a standing order from my bank account.

The deposit was waived because I was paying a decorator to come in. I never thought to keep receipts but I could contact the decorator and carpet fitter to ask for a receipt. I bought all the materials through my work at cost as I work for a hardware company.

That was how the letter came, I probably should not have opened it but I did....

I will email you the letting agents name as not sure how much wrong they have done here.

Since I have been here I have never received a gas or electricity bill so that will be outstanding, not how I usually operate but not had a bill to pay.

The Landlord.... elderly woman and when I went on to Google maps to see where she lived in Ireland it was an empty field!

The plot thickens lol

[MrsD]

Re: Landlord not paying mortgage on property I am renting

I think I know where you are at the moment Millie, I really wouldn't buy there for the moment, the prices, as you say, are vastly inflated when new and no one is making any money or selling. Unless they offer it at around £55K and you can give it quite a few years to appreciate, I would just be sticking to renting, then you can walk away anytime. there are loads of these flats right across the central belt in Scotland that have lost loads from new, Glasgow Harbour one of the worst, so it's not a market I would be jumping into unless the price was VERY right

[PlanB]

Re: Landlord not paying mortgage on property I am renting

I've only just seen your post # 20.

You've got to admire the agent's cheek

He's rented you a property which you've invested loads of your own money in and are now facing eviction and he thinks you should trust him to rent you another one only a few doors down the road! I wonder if it's the same rogue Landlord . . .

At least he admits it would take months to get you out of your current place.

I feel a rent strike coming on although I would never ever advise that obviously.

Plan B x

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

I think I know where you are at the moment Millie, I really wouldn't buy there for the moment, the prices, as you say, are vastly inflated when new and no one is making any money or selling. Unless they offer it at around £55K and you can give it quite a few years to appreciate, I would just be sticking to renting, then you can walk away anytime. there are loads of these flats right across the central belt in Scotland that have lost loads from new, Glasgow Harbour one of the worst, so it's not a market I would be jumping into unless the price was VERY right

MrsD....

I have sent you an email, didn't want to post on thread

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

Could you please tell me this....

I won't come in from work and all my stuff will be out in the entrance close and I will be evicted, I do cherish my belongings...

[PlanB]

Re: Landlord not paying mortgage on property I am renting

Could you please tell me this....

I won't come in from work and all my stuff will be out in the entrance close and I will be evicted, I do cherish my belongings...

I assure you that won't happen if you keep your eye on the post.

You should get a letter telling you the day/date/time of any bailiff's visit.

They'll be opportunities before that to prevent any eviction. As a Tenant you have legal rights.

Read this and call Shelter as I previously suggested:

http://scotland.shelter.org.uk/get_a...o_repossession

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

I assure you that won't happen if you keep your eye on the post.

You should get a letter telling you the day/date/time of any bailiff's visit.

They'll be opportunities before that to prevent any eviction. As a Tenant you have legal rights.

Read this and call Shelter as I previously suggested:

http://scotland.shelter.org.uk/get_a...o_repossession

PlanB

I have read through the Shelter website and this is what it is telling me to do.

'If you get a notice of an impending notice to remove, or the sheriff officers turn up at your door and request you leave the property, the best course of action would be to contact the lender and tell them that you are a tenant in the property. Hopefully this should stop the impending action. However, if the lender will not recognise you as a tenant, or states that you will have to leave regardless, contact an advice centre or a solicitor'

Do you think I would be better writing to them rather than calling so everything is recorded?

[PlanB]

Re: Landlord not paying mortgage on property I am renting

I think your starting point should be 'what do you actually want to achieve' and then work backwards from that within your legal options.

Do you want to stay in the property until the bailiffs turn up to evict you, or do you want to do a deal direct with your Landord's lender to remain in the property for another six months or more (not impossible since repossessed BTL properties often let existing Tenants stay for a year or more) or do you want to turn tail and run for the hills?

You have the law on your side at the moment.

The next crunch point is 22nd April (?) which is your Landlord's possession proceedings' hearing. At that point (preferably before) the court needs to be aware of your and more critically your young son's occupation of the property on a legally binding rental contract.

I'll help you every step of the way where I can

Plan B xx