Had my flat repossessed today

Crown

roswell wrote:

I assum that you dont have a BTL mortgage ? Can I ask why you are renting it out and how you got to this situation?

ManAtHome wrote:

Perhaps you should change the title to "had my BTL repossesed today"... And you have BTL+debts and the rent didn't cover the mortgage? I'm sure there's more to it, but my sympathy at the moment is with the tenant.

I did not come here looking for any sympathy but once again I see that before people even know all the facts that they are judgemental.

The Mortgage was brought through a Property Investment Company and although looking back I was totally niave they took care of all the paperwork and also were the mortgage broker.

At the time I was in a well paid job and making monthly payments on the flat was not an issue. The original idea was that the flat would be rented for a while and then I would move into the property myself.

I was then suddenly made redundant from my job back in 2005 and luckily was offered another job with one of our suppliers but at a much lesser income.

The rent covered the mortgage although another tenant sublet the property and then did a moonlight flit.

This went to court but the tenant could not be found once we finally got the subletters out of the property and inspected it they had caused thousands of pounds worth of damage (Wrecked floorboards, Kitchen units ect).

With the loss of nearly 6 months rent and the costs of repairs I lost around £7000. This was paid on credit as I was/still am looking for a better paying job but to no avail.

I contacted the Mortgage company and they advised me that the Mortgage was not Buy-to-Let but residental. I informed them that it was brought by a investment comapny and to cut a long story short it seems that they have done this to a lot of people and have now wound the business up.

I have spoken to the letting agent regarding the tenant who is there at the moment and they have other properties that she can be rehoused in in the same building. This isnt ideal but at least she will not be "on the streets"


When I got involved with this my partner was the one who was into the idea of investment properties and looking ahead for the future. I dont need telling what a prat I was getting involved in this and paying for the last year on credit why I tried to sell it.

I have had a near breakdown over the last 6 months due to depression regarding this but now am trying get this sorted out.

Sorry for the waffling-on but I am a little !!!!*d off that some of the comments seem to think that I dont give sh*t about the tenants or the debt. I can assure that is not the case.

I asked if anyone had experience of this situation. I did not ask for judgement.

Crown

woohoo_postingid wrote:

Agreed, and my sympathy is with the tenant but you also have to look at your life. Given enough notice, a tenant can find somewhere else to live and, as nasty as it sounds, it is not your problem whether they do or not.

What I'm saying is, don't beat yourself up about the tenant, that is just another worry that you don't need. Focus on you and your issues.

I have spoke to the letting agent and they say it should not be a problem to rehouse the tenant. they have properties in the same building.

Also I am in discussions with a cash buyer who may take the property over and keep the tenant in the property. I have hjust sent the paperwork to his solicitor so hopefully this will resolve the mortgage problem. just leave me with the credit card/loan debts

silvercar

Crown, sympathies to you in your situation. Its good that you are dealing with the problems and sad that people get grief when they ask for advice.

In answer to some of the naive comments made by others.

They are other perfectly legal ways of funding a property rather than a standard BTL mortgage. Many lenders will give "consent to lease" on a residential mortgage.

Landlords own their property and can use it as security for whatever they want, business loans, personal guarantees etc, the property is always at risk. (Though I accept that it is fraudulent to apply for a residential mortgage with the intention of renting out the property.)

To think that lenders won't repossess a property just because its on a BTL mortgage is laughable. The only difference is likely to be a letter addressed to "whom it may concern" at the property rather than the landlord's name. So the tenant gets an extra few weeks notice that there is a problem. Remember that residential mortgages are regulated, so lenders have to abide by codes of conduct etc BTL mortgages are unregulated.

Property rental is generally on 6 month or yearly ASTs; by their very nature tenants have to expect that they could need to move regularly.

nej

Offer to sell to the tenant?

If I were the tenant I'd stay put. He could claim squatters rights then!

bazzzz

Crown wrote:

Hi all, had a terrible day today.

Went to court over £3000 arrears on the mortgage of my flat and the lender (BM) wouldnt except my offer of monthly payments and a little bit on top ( a little bit meaning very little) and have been told that it an order is in place of the 27th Feb.

This is not very clear.

What did the Judge have to say about your offer? Did he not impose a new repayment structure? How many hearings have you had? Who 'told' you about the repossession order? Is it a suspended order? Were you present at the hearing?

I used to act for banks in repossession hearings in the early 90s and Judges bent over backwards to prevent houses being repossessed and would accept any reasonable offer, to the detriment of banks, to prevent repossession even if it meant adding years onto the mortgage term.

The banks' views on this are irrelevant if the Judge considers your offer reasonable. In which case the Judge will impose new terms on the bank, and provided the mortgagee kept to those terms the house would not be repossessed.

ukdrummajor

nej wrote:

Offer to sell to the tenant?

If I were the tenant I'd stay put. He could claim squatters rights then!

something for nothing...........terrible attitude.

ukdrummajor

when i was younger my parents had their home repossesed and i remember that on the day of being evicted we were all (including neighbours) ripping up carpets and putting everything out on the street so we could take it in cars to be sored at friends houses whilst the council put my parents in emergency housing and i stayed at a friends until we were offered a council house.

I can fully understand the stress the op is feeling and whilst our siuations aren`t the same i can tell you that things do get better. I`ve worked hard, am now self employed and my parents no longer have the stress of mortgage arrears and constant ongoing threats from lenders. Good luck in your sale but i can say the estate agents in charge of our house sold at a ridiculously low price to ensure the lender got their money asap.

gingerfurball

(((crown))) hope things work out

nej

ukdrummajor wrote:

something for nothing...........terrible attitude.

Sorry, wasn't being serious. I hate squatters.

I was serious about arranging a private sale with the tenant, though, if he/she is suitable.

gemspan

Hi there

Im so sorry to hear about your problems. Ihave spent the last year with financial difficulties and illness so I know what you are going through at the moment.

What I would say is that it does seem a very small sum for them to repossess, especially if you are offering to pay your monthly instalment AND something small on top. As another poster has said, did you attend Court? Is there anything you can do to appeal? Do you want to sell your house? It might just be a way out now if things are really bad.

Good luck
Gemspan