Ltd co. mortgage, mortgage express going to appoint property management co. Help pls?

JPS29

Hi ,

Can anyone help me please.

I have a limited company which has a btl mortgage with mortgage express. To cut a long story short the mortgage is in arrears to the sum of £1400.

ME had my old address and despite 3 faxes to them, with delivery reportss this went unchanged. However having spoken to someone last week and getting a different fax number this has finally been changed on Thursday. I should noww receive all correspondence but have had none for 3 months.

Point is tenant has received a visit this morning saying they cant contact landlord and property is looking like it will be transferred to specialist property management company.

Can they do this??

They have my contact details and address so Im assuming its an overlay in him being instructed.

My intention is to pay half the arrears £700 on Monday and then reinstate dd to take remainder on 28th then back to normal with regular monthly payments.

Can anyone tell me whether I should be ok with this. Tried ringing them today but they're shut and will be worried sick all weekend now.

Thanks in advance.

saver_sam

Yes I believe they can and I'll come back with the relevant Act shortly.

JPS29

Thanks for the quick reply Sam.

Will paying the arrears not stop this though???

feisty1

"mortgage is in arrears to the sum of £1400" "will be worried sick all weekend now"

I imagine yr tenants will be feeing the same!

MEX technically own the property so yes they can do what they like (within the law)
I'm not being harsh, but u've done as "you liked" ie taking tenants rent & not paying mortgage

No point in making yrself ill, if u have a problem their is a solution, if no solution, no problem!

saver_sam

I have a Landlords guide provided by mortgage express - ex is a mortgage counsellor so will provide some brief details from the leaflet (XB02448 (12/2007)). Hopefully this is what is relevant to you.

What is a Law of Property Act Rent Receiver?
A Law of Property Act (LPA) Receiver is an individual generally appointed by mortgage lenders to intercept and apply rental payments direct to the mortgage account (typically this happens when the borrower has in some way breached their mortgage conditions.) By collecting the rental payments and applying them direct to the mortage account it can often avoid the need for a lender to take possession proceedings.

How does it affect you as the Landlord (borrower)?
The biggest difference to you is that the LPA receiver collects the rental income from your tenant and sends it directly to the Lender. If the rental income isn't sufficient to cover the contractual mortgage payments, as they fall due, you may be contacted to pay any shortfall.
As soon as the LPA Receiver has been instructed they take over complete control of the property. No court appearances or papers need to be signed and no Judgment is required for the LPA Receiver to be appointed.

Also there was a case recently where the property was sold onto another company. Horsham Properties Group Ltd v Clark & Anor [2008]. Believe there have been other threads about this case too.


Other thing you could do is ask the tenant if the person who called left a number for them to be contact on. If its a mortgage counsellor they usually go over the things with you and may be able to put proposals to the mortgage company.

JPS29

feisty1 wrote: »

"mortgage is in arrears to the sum of £1400" "will be worried sick all weekend now"

I imagine yr tenants will be feeing the same!

MEX technically own the property so yes they can do what they like (within the law)
I'm not being harsh, but u've done as "you liked" ie taking tenants rent & not paying mortgage

No point in making yrself ill, if u have a problem their is a solution, if no solution, no problem!

Thanks for the reply and the assumptions. However teh property was untenanted for 2 months hence the arrears so I haven't taken rent and done what I liked. What is the solution as I do have a problem.

feisty1

InTheBrownStuff wrote: »

Thanks for the quick reply Sam. Will paying the arrears not stop this though???

But yr only paying half? No point us speculating on here what might & might not be, as every case is treated differently. They have a duty to treat you with respect, but make sure you have a plan in place to offer them

JPS29

Thanks again Sam.

Does anyone know if this will be prevented by paying the arrears in full. Had any experience of this?

Cheers

feisty1

Well you haven't budgeted for a rental void, this is part of being a landord.

JPS29

feisty1 wrote: »

But yr only paying half? No point us speculating on here what might & might not be, as every case is treated differently. They have a duty to treat you with respect, but make sure you have a plan in place to offer them

Yes but half monday and other half on 28th still in the same month.

JPS29

feisty1 wrote: »

Well you haven't budgeted for a rental void, this is part of being a landord.

Having just lost another business this made this hard. I appreciate your point but believe me I already know this, just after advice really, not judgement.