Bridging loan repossession

Dave_Ham

I honestly do not know what to suggest, other than you buy the property from MIL although the fact you have not done this already and missed the question when I raised it before makes me think this is not an option?

I also have sympathy with the bridging finance company, who have extended their original deal once and you are now operating outside the terms of their agreement.

I would hope MIL has supplied some verification that she is too unwell to attend, as otherwise this will be viewed dimly.

You will be given some time, but I cannot see the case going anything other than negatively for you I am afraid.

CKhalvashi

Dave_Ham wrote: »

Working on a best case scenario of £1.2m vs £1.35, I cannot get my head around how this is even got to an application.

On a buy to let basis, typically you require 75% loan to value minimum on these values. Are these what was put on application?

I cannot believe if these values were accurate, how bridging was obtained and what exit route they were looking at?

Are these figures definitely correct? if so then not good news coming I am afraid..

We've been unable to get better than 65% when you're looking at £1m of borrowing, so this is an important point to make. We're hovering around the £7k mark on a £1.4m property (split into 4 units)

CK

holly_hobby

Aaah the plot thickens .... the property is sub-divided into 4 x s/c flats .... which will require commerical funding (unless all 4 flats have Planning Permissions etc, and their own title deeds, to be mortgage independetnly - 1 x residential unit (mum/you) and/or 3 x BTL units (re tenanted flats).

As Dave has said, you have for the last 3 mths since June, been operating (albeit with the lenders tacit agreement) o/s of the contractual bridge agreement - with still no re-finance plan secured.

I can only see one solution here ..

H

CKhalvashi

holly_hobby wrote: »

Aaah the plot thickens .... the property is sub-divided into 4 x s/c flats .... which will require commerical funding (unless all 4 flats have Planning Permissions etc, and their own title deeds, to be mortgage independetnly - 1 x residential unit (mum/you) and/or 3 x BTL units (re tenanted flats).

As Dave has said, you have for the last 3 mths since June, been operating (albeit with the lenders tacit agreement) o/s of the contractual bridge agreement - with still no re-finance plan secured.

I can only see one solution here ..

H

I'm not the OP, just mentioning my experience.

CK

holypocketsbatman

Thanks everyone,

Well, perhaps predictably, the court ignored the adjournment request and issued a repossession order for 28 days. I guess we have to bite the bullet and sell, but we'd like to sell it at the best price as I'm given to understand that when they reposess they sel for about 75% of the market value which will probably just cover the outstanding debt and not recoup any of the money (i.e. all of our money) that we put in renovating it.

28 days (plus the two weeks for the eviction warrant) isn't much time time to list and sell. What are the chances and what is the best way to apply to the court to extend that period of time?

Many thanks for all the help guys, I know that we're technically in the wrong here, but we've put everything into this place.

Cheers

holly_hobby

Have you engaged a solicitor at all to help ? Or are you trying this all as a LIP (Litigant in Person ) ?

If the property is awarded, the creditor is duty bound to seek the best price, and forward to the owner any residual after repayment of the debt and all associated fees, the reality is they want it sold asap so they can balance the books, which means that it will be competitively priced.

Maybe you can do that now, price it competitively, at least you will avoid the hefty fees the creditor will charge for administering the whole marketing and sale process.

As to requesting a further extension .... you would need to demonstrate that you are doing everything in your power to sell, including a marketing price that is both keen realistic ..... ie not asking top bat for it, and that there is nothing different the creditor could do (apart from reduce the asking price further of course !)

I would strongly suggest some qualified legal advice/support on this ...you could also try Shelter for guidance on repossession process etc .... http://england.shelter.org.uk/get_advice/repossession

Hope this helps

Holly

holypocketsbatman

Thanks, I'll check that out.

We're doing it all ourselves, it's made especially difficult as it's all in MIL name and she's away and ill.

holly_hobby

Given Mum's health and circs, have you a Power of Attorney in place ? Ideally a Lasting Power of Attorney (1 x property/finance and 1 x health/welfare), which may be more appropriate given her age and health issues ?

If she has no cognative imparement at present, this is pretty straightforward.

Suggest you look into this if you don't have an LPA in place.

Hope this helps

Holly

Dave_Ham

And I assume you are not in a position to purchase the property from MIL, if she gifts you the deposit?

holypocketsbatman

Thanks Holly, that's a really good idea, I wish we'd thought of it before the hearing as we could have attended in her place and maybe got a better outcome!

Dave, sadly not. I went bankrupt in 2009 and was discharged in 2010, my wife has no credit footprint, nothing bad, but nothing good, she barely exists from a credit POV

Thanks again for the help