Sudden lpa receiver threat after 5 years of regular monthly payments

[PlanB]

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

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.

That's a good idea.

He's paying towards the mortgage each month so he has a beneficial interest.

It won't necessarily prevent repossession but it will delay things.

Plan B x

[PlanB]

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

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've got those letters.

Firstly, I think your loss of income from the accident (how long were you off work since you say you only got 6 weeks paid sick leave from work?) and the resulting intervention by the LPA Receiver should form part of that accident claim.

You may be able to achieve an interim payment on any settlement and then wait until you've had a further medical assessment a year later. I'll look into it in more detail by email.

Secondly, Barclays bank can recall the property from the Receiver if they want to do that. It's unusual for a Receiver to refuse to accept payment from the borrower. You're doing the wise thing by making payments direct to Barclays.

Perhaps the way forward is to approach Barclays with a positive financial plan which gives them the opportunity to reconsider the situation (and recall the property from the Receiver). If you'll be making higher payments from next month and have a potential lump sum from your personal injury claim in the pipeline, you may be able to convince them that the financial blip has passed and things are on the road to recovery. You'll be asking them to restructure the loan or at least let you pay it off within a reasonable timeframe. They'll still be getting interest on their capital so they may be tempted to play ball.

My attitude to life is 'if you don't ask you don't get' so it's got to be worth a try

Plan B x

[Helper2015]

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

Yes, but where possession is sought by Barclays/ its agent, where she has a dwelling the judge has discretion to delay possession for a reasonable period: s36, AJA 1973 (s amended). The reasonable period could be anything up to or beyond 4 years, starting with the mortgage period: Norgan (1996) CA, but where there's a suspended possession order it cannot be set aside as it has already been executed and equity cannot assist therein. At this point the OP can merely use an N244 form to very temporarily 'stay an eviction,' as confirmed by a Court of Appeal case.

This is why the OP needs an earlier intervention prior to any possess order threats where equity can come to her aid, potentially.

[PlanB]

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

Yes, but where possession is sought by Barclays/ its agent, where she has a dwelling the judge has discretion to delay possession for a reasonable period: s36, AJA 1973 (s amended). The reasonable period could be anything up to or beyond 4 years, starting with the mortgage period: Norgan (1996) CA, but where there's a suspended possession order it cannot be set aside as it has already been executed and equity cannot assist therein. At this point the OP can merely use an N244 form to very temporarily 'stay an eviction,' as confirmed by a Court of Appeal case.

Helper2015 I suggest you should read this http://nearlylegal.co.uk/2008/10/hor...ce-intervener/

Also bear in mind that this is a commercial loan so not regulated under the CCA.

Plan B x

[Helper2015]

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

Thank you for your post Plan B.

The above law applies to persons who have mortgages (ie in this case, land ownership), who occupy dwellings, which includes dwellings attached to businesses. The facts: OP taken out mortgage to purchase a business. This is not just any loan therefore as the mortgage herein pertains to land, ie business premises. OP informs us that business was attached to a dwelling, ie her home; therefore AJA 1973 comes in play where Barclays (mortgagee) apply to the court for an Order of Possession: s.101, Law of Property Act 1925.

[PlanB]

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

Thank you for your post Plan B.

[Helper2015]

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

This is very urgent - if Barclays does not have a legal mortgage (via deed) then it cannot appoint LPA receivers, it/ its agent cannot repossess or sell a property. In Horsham and Ropage (below) it is legal for an order of possession to be avoided by 'power of sale' by appointing receivers for sale, and sale where no occupants, respectively. It would seem these cases were legal mortgages. It is otherwise a criminal offense to take possession without a court order of possession, ie by forcing a person from a dwelling: s.7, Criminal Law Act 1977.

Are we certain this is a mortgage be it commercial or anything else? A mortgage is where the lender has title, ie via a deed: s.52, Law of Property Act (LPA) 1925. Does Barclays have possession of the property's deeds? The fact that 'Property of Law' relates only to interests in land (ie freehold, leasehold), and Receiver' are used as key terms indicates that 1) it is a mortgage; 2) only mortgagees with deeds (legal interest) have the power to appoint Receivers under the law of Property Act (s.101, LPA).

Post 32: “The original mortgage was £60,000 not £64,000; March 2007 I was given a Commercial Mortgage Loan Facilityfor £54000, that was when the charge was put on the house."

If a mortgage based on deeds (legal mortgage) is registered it is a legal mortgage: Land Registration Act.

Legal mortgagees, ie Barclays or agents (ie LPA Receivers) have a power of sale: s.101 LPA 1925, which does not require an Order of Possession: Four-Maids Ltd v. Dudley Marshall [1957] F No26 (HC); Ropage v Barclays (2001); Horsham (2008).

[Disastra]

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

Hi, I was only off for 6 weeks in total. (But may now need another 6 for the 2nd op) It has meant I have a deferred 1st formal warning so if I take any other sickness leave at all within 12 months that will activate. It's a long road to dismissal so I should be ok but it can go against you for applications for promotion/sideways moves as attendance is taken into account and you can't actually apply for some if it is active. Given the waiting lists for 'non urgent' procedures I'm hoping to be over the 12 months before they call me for the 2nd op. The claim solicitors have been made aware of all this.

Regarding my husband registering an interest, how would we do this? I've looked at the Land Registry info, it isn't clear.

I think the receivers may have just added themselves in order to get any communications. It's probably a precaution against us selling/leasing the property.

I'll write to Barclays asap, copying the receivers in. I'm more than happy to give them all the compensation if it means we get to stay here.

Thank you.

[PlanB]

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

I think the receivers may have just added themselves in order to get any communications. It's probably a precaution against us selling/leasing the property.

I'll write to Barclays asap, copying the receivers in. I'm more than happy to give them all the compensation if it means we get to stay here.

Let me help you compose your letter to Barclays

The Receiver has invited himself to tea and you'll be giving him some date options for next month.

Time is your friend at the moment.

No need to go in guns blazing if there is no threat of court proceedings to repossess you. Sometimes engaging with your foe works.

Plan B x

[Helper2015]

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

do you have the deeds to the property or not? if you need a restriction you're best doing it through a solicitor, it may cost a few hundred pound. The problem is if you do it now it may provoke the LPA receiver. It just depends whether you can sort thins out informally without going down the possession road.

[Disastra]

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

Ok, brilliant thank you. I'll hang fire and just send the dates to the receiver.

[Disastra]

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

Letter from Barclays today. I have scanned and emailed to you Plan B.

They're advising that although they're still accepting the payments this is without prejudice to any enforcement action and reminding me they are unable to accept payments in monthly instalments.

Smacks of the receivers having advised them they aren't accepting payments from us.

[PlanB]

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

Letter from Barclays today. I have scanned and emailed to you Plan B.

They're advising that although they're still accepting the payments this is without prejudice to any enforcement action and reminding me they are unable to accept payments in monthly instalments.

Smacks of the receivers having advised them they aren't accepting payments from us.

Of course they're not "unable" to accept payments. They haven't returned them so they have accepted them. Their letter acknowledges your payments which is a good thing.

Since you plan to increase them from next month I'd write and tell them that too. You're building a file of evidence of your willingness to pay and their unreasonableness for non-cooperation.

Depending on what you learn from the Receiver's visit you may want to work towards asking Barclays to recall the loan from the Receiver who will want to hang onto it or even sell it since their business is also an auctioneer. The Receiver gets paid every step of the way.

In order to convince Barclays to recall it you'd need to have a viable financial proposal on the table which demonstrates you can repay the outstanding balance in a reasonable timeframe. What would the monthly repayments be to cover the interest and repay something towards reducing the capital?

Did you look into whether you could raise a mortgage to pay off the bank since both you and your partner are employed?

Have you had three valuations of the property carried out by local estate agents?

Plan B x

[Helper2015]

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

The Receiver will know the value of the home by looking up on their own property databases, ie homes in the area. It is accepting payment because it's the borrower's equitable right to redemption (ie pay off the mortgage, which is the borrowers right in law, well equity to be precise). Barclays etc use Receivers to avoid dealing with possession orders and removes their self from any liability - the fact that they do not want to accept mortgage payments indicates they have an LPA sale in mind. Plan B, why are being so blasé, you're demonstrating that you know little to nothing about property law, which could be to the OP's detriment. She shouldn't have to look for alternative financial product or invite the receiver to tea, as you put it so nonchalantly. The law says the reasonable timeframe is the remaining mortgage and Barclays/ the Receiver knows this.

[Helper2015]

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

What should be questioned is what rights Barclays/ receiver have in law..ie is it a legal or equitable mortgage and is it registered as that.. Hmmm...but you're apparently the expert.