The Mortgage Works - redemption figures

Anthony_Corn

We have a large amount of borrowing with The Mortgage Works over approx 25 properties.

We recently agreed to sell one of these properties and requested a redemption figure from TMW. The amount they requested was over double the open market value of the property!!

When queried they said that they need to keep the ltv at 83.74% across the portfolio and sent a schedule of their new valuations showing that they consider that some properties have gone up in value and some have gone down in value. Overall it showed that they considered the portfolio had increased in value however they will not take into account the ones that have increased only the ones that have decreased!! We then offered to pay 83.74% of their valuation of the property in question to ensure their position remained unchanged which they verbally agreed was a reasonable request yet their calculations still produce this hugely inflated amount.

We have tried for over 6 months now to make some sense of the situation with almost daily telephone calls all of which were stopped at the 'front line' telephone operatives with promises of call backs from the underwriters and the like yet to date we have not received even one call back. As, during one telephone call, it was agreed that if they could not get their proposed redemption figure they would instead take 100% of the sale proceeds we went ahead and sold the property in question and sent the proceeds which they now refuse to take.

How can we ever sell anything? How can we be expected to pay back double what something is worth? We have other sales lined up on some more of these properties yet are unable to progress them because of this frustrating situation.

Has anyone else had this problem with them or any advice as to how to progress this?

Thanks

silvercar

You need a broker with experience in portfolios.

If you want to stay with TMW you need to get past the phone operators and speak to the underwriting department. It sounds like TMW aren't really interested in portfolios of 83% LTV, I'd guess that it doesn't meet their current lending criteria and ideally they want it lowered to something more reasonable or moved away from them.

Conrad

I've come accross this - you need to deal with one person or demand the MD's name and telephone. This could be sorted very quickly mate.

Thrugelmir

You need to take a look at the whole issue of finance closely.

I suggest that you arrange a proper meeting. Its not possible to discuss the matter seriously over the telephone.

You need to have a plan that will the reduce LTV to under 70% across the portfolio with realistic prices for the properties. Say at open market value less 5%. To give a sufficent buffer.

I would guess that you've no more than £35k equity in each property. Which isn't much in view of the total borrowing you have (guess £3.5 to £4 million).