Unoccupied mortgaged property breaking Terms and Conditions?

sonof2

Hi All,
I've searched the forums but can't find anything that directly relates to my problem.
We have a mortgage with Basinghall Finance Plc which was with North Yorshire before that and originally with Gmac. We rented our house out for six months, ending March 5th, with Basinghalls consent, but are not in a position to move back into the property and consequently the house is up for sale.
We had to inform Basinghall of our intentions prior to the tenancy ending, which we did. However our intentions changed from renting for a further six months to the house being unoccupied as the tenants were unable to continue renting.
We now find ourselves in the position of recieving letters from Basinghall stating that they "have reason to believe that the property is unoccupied" and that "our mortgage T&C's state that we must live in and use the property as our permanent home and must let them know if the property is unoccupied for 28 consecutive days".
Also "If we continue to be in breach of the mortgage T&C's they may take further action"
I have change the buildings insurance from Landlords to standard and the current policy is based on the property being unoccupied.
What I'd like to know is :
1.Is this likely to be in the T&C's of my mortgage?
2.If I make a request to Basinghall for a copy of the original Gmac T&C's do they have to supply them?
3.What, if anything, would the futher action be that Basinghall could take?

Additionally, I have already explained to Basinghall, via letter, that I visit the property twice weekly and that the correct buildings insurance is in place. Their return letter didn't even acknowledge receipt of our letter and didn't answer my question about "What can we do to gain consent to unoccupancy and avoid breaking the T&C's of the mortgage?"

I dont' phone Basinghall as their call center is in Ireland and they are only able to read the notes on their screens, not give advice, which have been inputed by the head office team in N.Yorks who cannot be contacted except by letter.
It's frustrating to say the least!!
Many thanks for taking the time to read this and any help/advice will be most appreciated.
Any questions or clarification just ask.
Cheers,
Pat:)

betmunch

1. Maybe, you need to get a copy of the T&C's 2. I would hope so. 3. They could force you to sell to pay back the money, which is what your doing anyway! Personally I would write to them and ask them why they think the house has been unoccupied for more than 28 days as it hasnt (you visit twice weekly) and full a full copy of your T&Cs highlighting the bit they feel you have breached. Then when you have these, write back for further clarification and continue to market the property.

Thrugelmir

Where do you currently reside?

sonof2

Thrugelmir wrote: »

Where do you currently reside?

At my parents house.

sonof2

betmunch wrote: »

1. Maybe, you need to get a copy of the T&C's 2. I would hope so. 3. They could force you to sell to pay back the money, which is what your doing anyway! Personally I would write to them and ask them why they think the house has been unoccupied for more than 28 days as it hasnt (you visit twice weekly) and full a full copy of your T&Cs highlighting the bit they feel you have breached. Then when you have these, write back for further clarification and continue to market the property.

Thanks. I'm going to type up a letter tonight but was curious about a few things, hence my questions.
So, they wouldn't be likely to try to repossess the house? Or have grounds to?

betmunch

they have grounds to in that you have broken the T&Cs as its not your main residence, however in practice this is very difficult to actually do as a judge would need to grant them possession and if they decide to take it that far and tell the judge you are trying to sell it and its well priced then it would be a very hard judge that gives possession to the lender just so they can sell it, especially if you are keeping up payments. Hence my suggestion that you delay them by entering into correspondence while you sell it yourself

sonof2

betmunch wrote: »

they have grounds to in that you have broken the T&Cs as its not your main residence, however in practice this is very difficult to actually do as a judge would need to grant them possession and if they decide to take it that far and tell the judge you are trying to sell it and its well priced then it would be a very hard judge that gives possession to the lender just so they can sell it, especially if you are keeping up payments. Hence my suggestion that you delay them by entering into correspondence while you sell it yourself

Thanks again for your advice. It seems that some mortgage companies have no common sense sometimes. Instead they just threaten us with further action, although we've already told them it's up for sale and have never missed a payment or been late with a payment in 6 years!
Cheers,
Pat

betmunch

sonof2 wrote: »

Thanks again for your advice. It seems that some mortgage companies have no common sense sometimes.

Sometimes? You should try dealing with them on a daily basis!!!

sonof2

betmunch wrote: »

Sometimes? You should try dealing with them on a daily basis!!!

Indeed! I do not envy you your job at all!
You mentioned earlier that if I visit the property twice weekly then it isn't unoccupied. Would that include day visits or only overnight visits? I only ask as I don't sleep there, only go up and check on the property, carry out any maintenance/tidying/gardening and collect mail. I'm sometimes there for a full day though. Also the property is unfurnished and currently in the 6 month council tax exemption period.
Many thanks again,
Pat

betmunch

You need to check what the definition of unoccupied is in your T&C's, if they havent got one then you can point out that without defining the term they cant really pull you up on it. If there is no definitition who is to say your visits count or not as when you are there its occupied even if thats only for a few minutes. This could be another letter you right asking for there definition of unoccupied within your mortgage contract

sonof2

betmunch wrote: »

You need to check what the definition of unoccupied is in your T&C's, if they havent got one then you can point out that without defining the term they cant really pull you up on it. If there is no definitition who is to say your visits count or not as when you are there its occupied even if thats only for a few minutes. This could be another letter you right asking for there definition of unoccupied within your mortgage contract

Thanks again for sound advice.
I'll await the requested T&C's from the mortgage company when they reply to my letter.
Cheers,
Pat