Sudden lpa receiver threat after 5 years of regular monthly payments

[Disastra]

Hi,

In 1999 I bought a business which came with an attached house. Sadly in 2009 I had to admit defeat after running up credit card and overdraft debt attempting to keep it going and closed the business down. I had a commercial mortgage loan. (I have just found old paperwork that calls it this even though I've been told over and over that it's not a mortgage) from Barclays who agreed to extend this and add the overdraft amount to it. I negotiated with them to service the loan with small payments until I was back on my feet which I did, gradually increasing these once I had found work and sorted my finances a little better from £50 to £100 then £150, then up to £230 per month. These payments have been made religiously every month no matter what. The bank also took out a charge against the property.
The bank recovery unit reviewed my circumstances regularly advising that as there had been no change they were happy to keep accepting £200 monthly (I voluntarily added the £30 on top once I'd paid something else off a few years ago).
Suddenly in August a letter arrived from a new person that I'd not dealt with before asking for a full financial breakdown, and that they wanted to send a surveyor. I was a little late returning it because I'd been in hospital and in the meantime they wrote to say they were going to bring in the lpa receivers.
I returned the breakdown, not unduly worried as I'd always had a good relationship with them, with a letter explaining why it was late and offering to pay £250 a month and review this in 12 months or sooner as I was hoping to be offered a new job with a higher wage.
I have now received a letter from them advising that they "...are unable to allow the account to remain with monthly payments.." and want full payment. The amount left is £44,600. They haven't given any explanation as to why they can't take monthly payments.
They have given me 21 days to contact citizens advice or a solicitor and to contact them to advise how I will make this full payment or they will bring in lpa receivers or instruct their solicitors.
When I closed the business I had it declassified so the property is now deemed wholly domestic (I couldn't afford business rates and domestic) and as it is a very old property with old electrics etc there is no way planning permission would now be given to reclassify without extensive modernisation taking place.
I am not going to be able to get a loan from anyone except maybe one of the high interest bad credit lenders, and don't really want to go down that route so I have no way of raising the full amount.
With the property being so old and in such a state I also doubt I could even take a lodger to raise extra money and comply with all the necessary regulations.
I am unsure where to go from here. We have no savings and no assets. Even our cars are 15 and 20 years old. (We commute in opposite directions with no public transport links that would reliably get us to work on time) We have nowhere to go and would effectively be made homeless by this.
I shall be receiving some compensation after a car accident in 2013 but as the claim is still ongoing I have no idea when this would be or how much it would be, so I don't know whether I should advise the bank of this. We were going to use it to hopefully have the kitchen renovated. It needs rebuilding, so I don't mean in the terms of getting fancy new units, I mean getting a roof that's not falling in and letting in enough rainwater to keep all my indoor plants happy, a back door that fits and rewiring.
As this isn't a straight forward mortgage I can't find much advice as to how I can deal with the bank about it and negotiate so that we don't lose our home so I am hoping that somebody here will be able to advise on the steps I could take.
Thank you for reading.

[nanna58]

Re: Sudden lpa receiver threat after 5 years of regular monthly payments

Hi I am so sorry to read of your situation sadly I can't help but I can reassure you someone will be along shortly xxxx

[nightwatch]

Re: Sudden lpa receiver threat after 5 years of regular monthly payments

good morning Disastra,

like Nanna I am not geared up on what you should do but will try and find someone that may point you in the right direction, we are not ignoring you and will get back to you soon xx

[Never-In-Doubt]

Re: Sudden lpa receiver threat after 5 years of regular monthly payments

Hiya

ill have a word with our solicitor for you. See what she reckons - sit tight. Back soon.

[Disastra]

Re: Sudden lpa receiver threat after 5 years of regular monthly payments

Hi, I offered them £450 a month and they've refused. Stating that they are not in a position to accept monthly payments. A letter from receivers arrived the same day as their refusal. Really have no idea what to do. Any advice appreciated.
Now terrified we'll be made homeless and lose our jobs.
The receivers letter tells us not to re-enter the property, but we have nowhere else to go.

[cymruambyth]

Re: Sudden lpa receiver threat after 5 years of regular monthly payments

Hi, I'm sorry that this is still ongoing and I will flag it to the site team to see if anyone can help.

[PlanB]

Re: Sudden lpa receiver threat after 5 years of regular monthly payments

A letter from receivers arrived the same day as their refusal. Really have no idea what to do. Any advice appreciated.
Now terrified we'll be made homeless and lose our jobs.
The receivers letter tells us not to re-enter the property, but we have nowhere else to go.

Can you clarify if your home is in joint names since it appears the loan was taken out in your sole name.

Does the Receiver's letter specifically refer to an eviction date and is it addressed to both you and your partner?

This is important so we can establish whether the Receiver (acting on behalf of Barclays Bank) can evict an innocent party (your partner) without a court order for possession.

I believe there may be different rules for owner-occupied not tenanted property according to the Council of Mortgage Lenders Code of Practice (which sadly is a voluntary code) which states:


CML guidance for lenders – the role of LPA receivers

"Following Horsham Properties Group Ltd v Clark , the CML published a voluntary statement agreeing that, in
respect of mortgages secured against owner occupied residential properties, lenders would not seek to sell
a mortgaged property when the borrower is in default or appoint a receiver to sell a residential property
without first obtaining either a Possession Order or the Borrower’s consent."


I don't know whether this would apply to your situation because we've not yet seen the contract you signed with the bank.

Plan B x

[Disastra]

Re: Sudden lpa receiver threat after 5 years of regular monthly payments

Hi and thank you.

The property is in my name. I wasn't with my now husband when I took the loan out. He does pay £100 a month toward the payments we make, from his bank account.

The receiver's letter is addressed only to myself (in my maiden name).

There is no eviction mentioned in the receiver's letter at all they just say they'll meet me here sometime soon and I mustn't re-enter the property.

They are asking for names and addresses of each occupier, copies of leases or agreements of occupation, amounts or rent paid by each occupier, details of payments received from each occupier, details of contracts for utilities and services, copies of planning consents, particulars of any notices served, details of offers for purchase or letting, any other particulars which may affect the property or its value or realisation and the vat number. Also the insurance docs.

Also, if it is helpful, the receiver's letter is addressed in my maiden name despite the fact that all the bank correspondence is addressed in my married name as I sent them a copy of the wedding certificate to make the change.

Here's a copy of an email I've drafted to maybe send them:

Further to your correspondence dated 23 October 2015; Please be informed that this is a domestic property and our only home. The property was classified wholly domestic in 2011 by C*************e County Council upon my application. No business has been conducted from the property within that time.


The home insurance is held with Santander. Standard Domestic insurance, home and contents. Documents are available for your inspection at this address.


In response to your questions where documentation is not required:


1. Name and address of each occupier:
Here I give my and my husband's names and this address

2. Copies of leases or agreements:

No leases or agreements exist property is a domestic dwelling where only we reside

3. Rents payable by occupiers:

See above: No rents payable

4. Payments received from occupiers:

See above: No occupiers apart from ourselves as a residence/dwelling, therefore no payments received

5. Details of contracts for utilities and services:

Domestic electricity with British Gas (No gas)
Domestic landline telephone with BT
Standard domestic water with Welsh Water
Domestic Council Tax with C************e County Council

6. Planning Consents:

None applied for

7. Notices served in respect of the property:

None

8. Offers for purchase or letting of the property:

None, property not on the market and is a sole domestic dwelling

9. Any other particulars which may affect the property or its value or realisation

Property is classified wholly domestic, a sole family residence, and would require substantial modernisation and renovation to comply with letting regulations or be acceptable for planning for change of use to business. This would include re-wiring throughout as all cabling/wiring including light fixtures, cooker plug, sockets is pre-1960's.

10. VAT Registration

Property is wholly domestic, therefore not VAT registered.

Regarding your statement about not re-entering the property, as this is our sole dwelling and we have no other address we are unable to comply with this.


Thank you again.

[PlanB]

Re: Sudden lpa receiver threat after 5 years of regular monthly payments

Don't send them anything until we've had a good look at the situation. Is there a deadline for a response on the Receivers' letter?

I'd hesitate to give them your husband's name until we're more sure of your legal position. They may need his name on an eviction warrant if it gets to that. Don't give them any ammunition to use against you yet.

Are you/your husband still making payments to the bank (Barclays?) or are you making payments to the Receiver?

Plan B x

[Disastra]

Re: Sudden lpa receiver threat after 5 years of regular monthly payments

Ok, thank you I'll hang back. They haven't given any deadline for a response at all, although they have said they've taken out insurance and if I don't send them our policy to prove we have insurance that'll add costs.

The payments are still being made to Barclays. The receivers haven't asked for any money or given us any details of how we could pay them, in fact that's not mentioned in their letter at all.

Should we up the payments to Barclays to our suggested amount of £450 now?

[PlanB]

Re: Sudden lpa receiver threat after 5 years of regular monthly payments

They haven't given any deadline for a response at all . . .

The payments are still being made to Barclays. The receivers haven't asked for any money or given us any details of how we could pay them, in fact that's not mentioned in their letter at all.

Should we up the payments to Barclays to our suggested amount of £450 now?

Is that the first letter you've received from the Receivers (I think you said there was an earlier one)? If you've got a scanner can you email a copy of them to me using planB@all-about-debt.co.uk

What is the date on this latest letter (23rd October?) and what does the last paragraph say you must do next or what they will do next (roughly)?

When is your next payment to Barclays due?

Plan B x

[Disastra]

Re: Sudden lpa receiver threat after 5 years of regular monthly payments

This is the first letter from the receivers, we'd just been threatened with them by the bank previously. I'll try to scan the letter and send to you. Next payment goes on 2nd November (They're always on the 1st working day of the month as this ties in with us getting paid on last working day)

Date on the letter is 23rd October 2015 and the last paragraph is:

I would confirm that I will be attending at the property in due course and would look forward to meeting you at that time.

The property is now in the control of the Joint Law of Property Act Receivers to the exclusion of you as the borrower. You the borrower should not re-enter the property without the Receivers expressed consent, neither should you remove any fixtures or fittings nor damage the property in any way which could result in a reduced level of realisation.

[PlanB]

Re: Sudden lpa receiver threat after 5 years of regular monthly payments

This is the first letter from the receivers . . .

Date on the letter is 23rd October 2015 and the last paragraph is:

I would confirm that I will be attending at the property in due course and would look forward to meeting you at that time.

The property is now in the control of the Joint Law of Property Act Receivers to the exclusion of you as the borrower. You the borrower should not re-enter the property without the Receivers expressed consent, neither should you remove any fixtures or fittings nor damage the property in any way which could result in a reduced level of realisation.

What a cold letter. It's your home not just any old property

I hope he is not planning to "attend" without letting you know first, and I definitely wouldn't put the kettle on when he does.

It sounds like a basic template which Receivers send when they have no real idea of who is living in the property, or whether it's tenanted or empty. I think that's what is meant about "should not re-enter" in case you're living elsewhere and decide to move back in making it harder for them to get shot of you.

Plan B x

[PlanB]

Re: Sudden lpa receiver threat after 5 years of regular monthly payments

In 1999 I bought a business which came with an attached house. Sadly in 2009 I had to admit defeat after running up credit card and overdraft debt attempting to keep it going and closed the business down. I had a commercial mortgage loan. (I have just found old paperwork that calls it this even though I've been told over and over that it's not a mortgage) from Barclays who agreed to extend this and add the overdraft amount to it.

. . . . The bank also took out a charge against the property.

When I closed the business I had it declassified so the property is now deemed wholly domestic

One more set of questions, sorry but it helps to get the full picture:

How much was the original commercial loan to buy the business in 1999?

How much was added to it in 2009 and was that overdraft a business account or a personal account?

Was your credit card balance also added to the loan and if so when did you open that account (before April 2007?) and was it a Barclaycard?

How much is the current balance outstanding on the loan (£44k?).

How much is your house worth on the open market on a good day?

What happened to the business premises when you closed the business in 2009?

I'm a little confused by your statement which says the bank took out a charge on your property when they restructured the commercial loan in 2009. I'm wondering whether that new loan contract/agreement was/is a regulated loan which replaced the original unregulated commercial loan and not an extension of the first loan (if you follow me). Were you a limited company?

Plan B x

[Disastra]

Re: Sudden lpa receiver threat after 5 years of regular monthly payments

Hi, Our scanner isn't working so I've typed the letter exactly into an email and sent to you.

Yes, I thought it was probably a pro-forma of some sort. It looks like they haven't seen any of the correspondence I sent to Barclays advising it was domestic and that we live here. To be honest it scared the life out of me when I read it first as I thought they'd come and change the locks whilst we're at work or something. Or maybe take us to court for trespassing.

There'll be no cups of tea offered that's for certain. I hope he makes an appointment because if he just turns up we probably won't be here. If he sends a day/time I can't get time off for I hope he can re-arrange. I suppose I'd better put the terrier in another room too, wouldn't want to be sued because she's nipped an ankle.

xx