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LPA receivers Landlords
Property_Man
Posts: 2 Newbie
Has anyone any experience with LPA receivers?
It appears that certain Buy-to-let building societies are instructing LPA receivers at a drop of a hat.
I have been involved in property in many formats for many years and have been a decent, considerate and fair landlord.
Recently some tenants did not pay the rent on a property, when they left the total arrears were £2000. I had to repair and repaint the interior and replace the carpets where they had smoked and left burn holes, the repairs cost £1400. Whilst the work was carried out the property was empty for three weeks so I lost further rental income.
Fairly....I would like the tenants to pay the rent arrears and a contribution towards the repairs (minus fair wear and tear, age, etc). Unfortunately the tenants deposit was tied up in the Governments Tenancy deposit scheme. This is a new scheme that was recently introduced to protect tenants deposits against unscrupulous landlords. On paper this is great for the tenant. Under this new scheme as a landlord; in the first instance you have to ask the tenants to pay the rent and arrears. If they dispute part of the arrears and/or the dilapidation, you can't use the deposit and nor can they. If the tenant is unscrupulous there is no advantage for them to release the deposit because the longer the delay the better. After a period you can then ask The Tenancy Dispute Service (TDS) to adjudicate. This takes the TDS a further 45 days. In my case I eventually received a reply by letter stating 'as the tenant hadn't paid the rent the deposit of £1425 is yours'. The letter also said any further claim would have to be made via another legal process. In the meantime due to this I haven't been able to pay a couple of smaller mortgage payments on other buy to let property. I have therefore gone into arrears by up to £400 on each. In the meantime the government owned buy-to-let building society has charged £30 per property for each month in arrears.
The interest rates have now dropped, my properties are tenanted and I'm just getting back on my feet. However the building society has just informed me that they have instructed LPA receivers and I will be charged £1000 on each account for the privilege. On one of these accounts I was £280 in arrears and would have had the arrears cleared within two months.
I feel buy-to-let building societies (particularly government owned ones) are trying to get their balance sheets shawn up. Through their charges and the use of LPA receivers, they are forcing landlords into further debt and are repossessing properties with equity. The landlords equity is effectively stolen.
There are currently 6 million tenants relying on private landlords, many of these tenants are losing their jobs and businesses and are therefore making late payments. Until the effects of lower interest rates feed through to ease the burden for landlords, then lenders (that got us into this mess in the first place) should be more flexible with their approach.
I feel if landlords feel at risk they will cease to be landlords and then the property market will collapse further. If the lenders see the market collapse further they will want higher deposits so the tenants that were potential purchasers will not buy therefore the whole property market again collapses further. Properties won't be built and we will then have an even bigger unemployment and homeless situation. The inevitable is the lenders would have shot themselves in the foot by this point!
If any other landlords have any further views or are experiencing similar problems please join in the thread. It would be interesting to hear from landlords with either singular properties or landlords with portfolios. Furthermore, anybody that has any experience in challenging the actions of these banks and building societies use of LPA receivers or has advise to give; please join in too!
It appears that certain Buy-to-let building societies are instructing LPA receivers at a drop of a hat.
I have been involved in property in many formats for many years and have been a decent, considerate and fair landlord.
Recently some tenants did not pay the rent on a property, when they left the total arrears were £2000. I had to repair and repaint the interior and replace the carpets where they had smoked and left burn holes, the repairs cost £1400. Whilst the work was carried out the property was empty for three weeks so I lost further rental income.
Fairly....I would like the tenants to pay the rent arrears and a contribution towards the repairs (minus fair wear and tear, age, etc). Unfortunately the tenants deposit was tied up in the Governments Tenancy deposit scheme. This is a new scheme that was recently introduced to protect tenants deposits against unscrupulous landlords. On paper this is great for the tenant. Under this new scheme as a landlord; in the first instance you have to ask the tenants to pay the rent and arrears. If they dispute part of the arrears and/or the dilapidation, you can't use the deposit and nor can they. If the tenant is unscrupulous there is no advantage for them to release the deposit because the longer the delay the better. After a period you can then ask The Tenancy Dispute Service (TDS) to adjudicate. This takes the TDS a further 45 days. In my case I eventually received a reply by letter stating 'as the tenant hadn't paid the rent the deposit of £1425 is yours'. The letter also said any further claim would have to be made via another legal process. In the meantime due to this I haven't been able to pay a couple of smaller mortgage payments on other buy to let property. I have therefore gone into arrears by up to £400 on each. In the meantime the government owned buy-to-let building society has charged £30 per property for each month in arrears.
The interest rates have now dropped, my properties are tenanted and I'm just getting back on my feet. However the building society has just informed me that they have instructed LPA receivers and I will be charged £1000 on each account for the privilege. On one of these accounts I was £280 in arrears and would have had the arrears cleared within two months.
I feel buy-to-let building societies (particularly government owned ones) are trying to get their balance sheets shawn up. Through their charges and the use of LPA receivers, they are forcing landlords into further debt and are repossessing properties with equity. The landlords equity is effectively stolen.
There are currently 6 million tenants relying on private landlords, many of these tenants are losing their jobs and businesses and are therefore making late payments. Until the effects of lower interest rates feed through to ease the burden for landlords, then lenders (that got us into this mess in the first place) should be more flexible with their approach.
I feel if landlords feel at risk they will cease to be landlords and then the property market will collapse further. If the lenders see the market collapse further they will want higher deposits so the tenants that were potential purchasers will not buy therefore the whole property market again collapses further. Properties won't be built and we will then have an even bigger unemployment and homeless situation. The inevitable is the lenders would have shot themselves in the foot by this point!
If any other landlords have any further views or are experiencing similar problems please join in the thread. It would be interesting to hear from landlords with either singular properties or landlords with portfolios. Furthermore, anybody that has any experience in challenging the actions of these banks and building societies use of LPA receivers or has advise to give; please join in too!
0
Comments
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Not in the position myself and never want to be but i do sympathise with your poosition, you can thank the (useless) Government.
Could try your local MP, no10 petition, anything that gives you support and a little clout!0
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