Sudden lpa receiver threat after 5 years of regular monthly payments

[PlanB]

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

i've heard from the solicitors about the accident claim, they won't really commit to an amount. They've said it is currently assessed as approx £7450 but does not take into consideration financial losses and expenses or future prognosis given by the medical experts.

Have you instructed a solicitor to deal with your accident compensation or do you mean you've heard from the other person's solicitor?

Give us a little more info about this separate issue please so we can help.

Surely the fact Receivers have taken over your home as a direct result of you not being able to work/pay the loan as a consequence of the accident (not you fault) then that should be a factor in any financial settlement?

Plan B x

[Helper2015]

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

Hello, Disastra

"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 overdraftdebt attempting to keep it going and closed the businessdown. I had a commercial mortgage loan. (I have just found old paperworkthat calls it this even though I've been told over and over that it's not amortgage) from Barclays who agreed to extend this and add the overdraft amountto it. I negotiated with them to service the loan with small payments until Iwas back on my feet which I did, gradually increasing these once I had foundwork and sorted my finances a little better from £50 to £100 then £150, then upto £230 per month. These payments have been made religiously every month nomatter what. The bank also took out a charge against the property."

When you say LPA Receiver, I assume you'rereferring to the bank's agent under the Law of Property Act 1925. Property law has legal ownership (title) andequitable ownership (discretionary). The bank is interested in itssecurity, ie the property consisting of a former business and attached'dwelling' (ie residential property). A mortgage creates a mortgagee (lender ieBarclays) and mortgagor (ie borrower). Where borrower defaults payments and lender seeks to sell property itrequires a possession order, usually via a contract term in the mortgage termsand conditions. It’s not known whetherBarclays has a legal mortgage (by deed) or equitable mortgage.

Possession/Sale

Let’s assume Barclays or its agent applied fora possession order: Law of Property Act. There are rights for the borrowerherein in certain circumstances under different rules called equity, as nonlegal owners have equitable/ beneficial interests in property law. Borrowerswith dwellings or dwellings attached to businesses (at common law) in equitycan delay possession for a reasonable period: section 36, Administration of Justice Act 1973 (as amended).

“…The amount left is £44,600…”

How much is this property worth currently,ie its equity? How much is the outstanding mortgage (commercial loan)balance? What was the originalamount? What is the amount of anyarrears? Do you believe you could payoff any arrears if you were given a reasonable period, ie x number of yearssuch as 4 years or more?

What was the value of the land charge onthe property and its date that Barclays had put on your property?


You also, and anyone who lives in that property has rights to stay as theproperty is also a “trust of land:” ie for the benefit of other residentsoccupying the ‘family’ home.

[Helper2015]

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

It depends on the amount of any arrears you have or potential problems in the future balanced with any leverage you have, as you may need to deter any repossession attempts by Barclays. If you tell the bank you have 7k, they'll be on that like a fly on the proverbial poo. Your priority should be your property - the law permit you rights to pay your mortgage off so do not show your cards too soon. Keeping your property is more important than updating your kitchen too! You really need to prioritise. I fear you'll need the 7k for leverage at later point.

[Helper2015]

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

Were you made bankrupt or was the company made bankrupt in the late 90s?? If the company was made bankrupt and it was a legal company ie Ltd and not sole trader etc, only the company is liable for the debt, and not you. If the company was not legal (ie sole trader) then you would have been liable and therefore bankrupt as an individual.

[PlanB]

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

Were you made bankrupt or was the company made bankrupt in the late 90s?? If the company was made bankrupt and it was a legal company ie Ltd and not sole trader etc, only the company is liable for the debt, and not you. If the company was not legal (ie sole trader) then you would have been liable and therefore bankrupt as an individual.

No one was made bankrupt as far as I can recall, and no company was made "bankrupt" in the late 90s either.

In fact I don't think there was a limited company involved at any stage

Plan B x

[PlanB]

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

How much is this property worth currently,ie its equity? How much is the outstanding mortgage (commercial loan)balance? What was the originalamount? What is the amount of anyarrears? Do you believe you could payoff any arrears if you were given a reasonable period, ie x number of yearssuch as 4 years or more?

What was the value of the land charge onthe property and its date that Barclays had put on your property?

^^^^ You'll find the answers to all of your questions in earlier posts on this thread.

Plan B x

[PlanB]

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

internet back after the storms.

. . Since the storms a couple of cracks have appeared in the walls, should I ask them if I can contact the house insurance?

I overlooked this point

Yes the buildings insurance provider needs to be put on notice of any potential claim following storm damage.

I presume the policy has been in your name since you purchased the property so call them to see if they are still providing cover in case the Receiver has taken out their own cover.

I wouldn't mention the Receiver in case it complicates things, simply tell them you want to report a claim on your policy. If they tell you it's been cancelled by a third party act all surprised and confused and tell them you call them back later.

Plan B x

[Never-In-Doubt]

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

Helper2015 - please see my Private Message.

[Helper2015]

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

"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. "

Plan B this is what I wasn't sure of.

[PlanB]

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

"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. "

Plan B this is what I wasn't sure of.

I read that to mean the OP closed the business down not that they were made bankrupt.

It was their personal choice to cease trading.

There was no mention of bankruptcy.

Plan B x

[Disastra]

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

Hi, I haven't been able to get here for a few days (obviously lol) Some personal stuff happening that has stopped me doing anything.

I wanted to clear something up. The accident that has caused me to have all these medical issues was after I closed the business and not connected. The accident happened in May 2013. I'm not sure I can make the complaint based on that except that they first wrote for the latest income/expenditure this year whilst I was in hospital and then at home on strong medication? I only had 6 weeks paid sickness leave from work.

It is my solicitors (Appointed by the insurance company) that I'm hearing from. Am waiting for an appointment for another medical assessment now so it'll depend upon whether they feel the problems in my right shoulder are connected with the ones in my left that I had the operation on, whether the payout would need to wait until I've had the second op, recovery, physio and then another assessment.

Plan B, I've sent you the copied letter. I hope it is the right way up this time.

I'll be looking at my shifts today and seeing where I have days off to be here that I can offer them to come and inspect. The letter will go today or tomorrow.

Helper2015: Thank you for the comments. There wasn't any bankruptcy and I closed the business myself through choice. I spoke to the bank manager at the time and told him what I was doing. It wasn't a Ltd company.

Thank you.

[Helper2015]

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

I do not understand how Barclays, whose security is the charge against the property, have appointed a receiver when the property is valued at 130k and the mortgage is merely a 1/3 (44k) of that.

1) Barclays have ample security with the charge, and it is very unlikely a judge would grant a possession order against the OP if the land is protected by a joint tenancy. Is there a joint tenancy?
2) A land charge does not give the chargee a land interest, it just means they have a right to be paid after the secure creditor (Barclays).
3) However, since the receiver has registered an interest on the property's land register it could mean they mean business. The fact the want to know the property's value indicates they're interested in a sale of the property potentially.

[PlanB]

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

it is very unlikely a judge would grant a possession order against the OP if the land is protected by a joint tenancy. Is there a joint tenancy?

The answer to your question is in post # 8

since the receiver has registered an interest on the property's land register it could mean they mean business. The fact the want to know the property's value indicates they're interested in a sale of the property potentially.

Have you got anything positive to add to this discussion

While you may be factually correct there are steps our member can take to preserve her home and that's what we are trying to help her to achieve.

Plan B x

[Helper2015]

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

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

Horsham was a 2008 case (i think), was an exception where there the proprietor was not in occupation, but terrible thing they did. Where someone is in occupation, the law is that they/ including receiver's need a possession order. What if not every mortgagee is a member of CLM, though.

[Helper2015]

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

Thank you for confirming that the OP does no have a joint tenancy. Her husband's interest is contributing to the property (so likely has a proprietary interest via a constructive trust, ie implied) but not currently protected, and to remedy this, either he should have or should currently enter his interest as a notice or restriction on the land register, which puts all land interested parties on alert.