Is BR the only way out?

Popster123

Hi, this is my first post, so apologies if I get it all wrong!

I'm in a pretty unusual situation, I have a leasehold flat mortgaged with Northern Rock. Unfortunately there has been significant damage (30k+) caused by freeholder negligence, which has left the property potentially structually unsound and definitely unsaleable at the average market value.

I have taken legal advice and although it appears to be a clear cut case of freeholder negligence I can't find a solicitor to take on the case on a pro-bono/no-win-no-fee/after the fact insurance basis as the freeholder does not work and his only equity is his property/freehold. I have also been advised not to inform the mortgage company as they will withdraw the mortgage on the basis that the property is not and will not be worth the value of the mortgage unless the work is corrected.

Because of this I have been advised that my only option is bankruptcy.
Basically I would like to know if anyone out there has any advise. How long does NR normally take to issue repossession procedures? Does repossession automatically lead to bankruptcy procedures?

Sorry if I've posted this in the wrong area, I'm just a bit lost. It all seems so unfair....the law is an !!! I guess :-(

So_Sad_Angel

Hi Popster123

Welcome Hun

Unusual situation.Is the property habitable? or do you have to live elsewhere?

NR have still not repo`d mine since I last paid in March 08 ! Also repo does not automatically lead to BR ...any shortfall will fall to you to be repaid if you can come to arrangement with the lender. This gives you time to take litigation against the leaseholder if there is a case to answer that is.

BR will release you from the debt provided you have no means of repayment. If you are solvent the BR is likely to be declined.

I would suggest you speak to one of the debt charities & discuss your options. Legal representaion is essential if you can get someone to take on the case.

Good luck with it,

Angiexx

Popster123

I am living at the flat at the moment, but I'm not sure I will be once the winter storms start arriving. I guess I'm hoping that I can get some cash behind me before NR repossess and the rent somewhere and then if NR doesn't push for bankruptcy I'll have to declare myself.

Unfortunately although I'm legally in the right unless I can find the money to independently pay a solicitor I have no way of suing the freeholder for damages caused.

It seems to be one of those situations that being in the right doesn't actually make any difference. I wish I'd never bought a property!!

So_Sad_Angel

Hi

In that case....call the NR & get a payment holiday for a while 3 months will give you a fund for the rental side. This will give you breathing space. You could just stop paying...you will get letters for several months before any action starts. They are very slow IMO.

NR will not make you bankrupt. They will repo the property & then chase for the shortfall. If you feel you can cover that shortfall by arrangement with NR then you will have no need of bankruptcy.

My advice....get as much advice as you can...knowledge really, really is `power`.

Angiexx

Popster123

Thank you so much, it makes me feel a little better knowing that I'm not going to be homeless next month!!

I guess I'll have to speak to one of the debt advice lines, its just so frustrating that I'm actually going to lose everything and it's not my fault! I would definitely advise people not to buy a leasehold property, this man has financially reuined me and he's going to get away with it.

dollparts

So_Sad_Angel wrote: »

Hi Popster123

Welcome Hun

Unusual situation.Is the property habitable? or do you have to live elsewhere?

NR have still not repo`d mine since I last paid in March 08 ! Also repo does not automatically lead to BR ...any shortfall will fall to you to be repaid if you can come to arrangement with the lender. This gives you time to take litigation against the leaseholder if there is a case to answer that is.

BR will release you from the debt provided you have no means of repayment. If you are solvent the BR is likely to be declined.

I would suggest you speak to one of the debt charities & discuss your options. Legal representaion is essential if you can get someone to take on the case.

Good luck with it,

Angiexx

My goodness Angie! I never knew it could take that long to repo! Have you had to pay the mortgage at all? Do you still live in the property?

I'm glad I came across this thread, I have been thrashing out the predicament I am in-wait for repo and then go BR or vice-versa. My mortgage is with NR too. But tbh if they can take that long then I will go ahead and go BR sooner rather than later.

So_Sad_Angel

Hi Pops

The best thing that you can do is look after yourself....get reading & become an `expert` on the subject. You may just `stumble` on the answer you know.

Be positive....just don`t take it lying down.

There is lots of info on this board but there are other boards on MSE on home ownership so try & see this as your specialist subject.

Angiexx

SouthCoast

This may be able to help:

http://www.communitylegaladvice.org.uk/index.jsp

Reviva_UK

Mortgage comanies are not in any rush at present to evict. This effectively crystalises a debt which could be considerable.

They seem to be interested in giving every opportunity for one to remedy the situation first.

With NR from your first missed payment you are likely to have until next year.

Perhaps you should speak to NR , have a payment holiday and use this money to pursue the loandlord. Definately worth checkingthat he has some value first otherwise he may be in a weak position anyway.

So_Sad_Angel

dollparts wrote: »

My goodness Angie! I never knew it could take that long to repo! Have you had to pay the mortgage at all? Do you still live in the property?

I'm glad I came across this thread, I have been thrashing out the predicament I am in-wait for repo and then go BR or vice-versa. My mortgage is with NR too. But tbh if they can take that long then I will go ahead and go BR sooner rather than later.

Hiya

Feel sometimes that I must be the longest no-repo ever !! Paid nothing since March 08 !

I hav`nt lived there since last May 08...its been empty ( but maintained) ...eventually I put it on the market in desperation as NR would`nt let me rent out. Actually I could have lived there all this time for nothing.:o:o

Annoying also as C`tax & bills still need to be covered.

They did ask me to sign something in Feb but I refused....I am now considering insisting that they repo...I will not contest it...in fact would welcome it quite frankly.

Angiexx