Help!BTL lender trying to sell my home and I am not in arrears

Psg2008

NEED HELP PLEASE. Any suggestions would be helpful

I was discharged from my bancrupcy in 2011. My mortgage lender appointed LPA receivers a few months prior to my bankrupty.

My former trustee disclaimed interest. Arrears on my mortgage was repaid before the end of my bancrupcy.

2 years later my lender evicts my tenants in order to obtain vacant possession. As they want to sell my property

I have gone back to court to have the property reinvested in me by obtaining a vesting order.

Dispite not being in arrears they are still trying to sell my property stating that I breached my contract by being made bankrupt in 2010.

I have asked why have they taken this action in 2013. Dispite me being in contact with them consistently through my bancrupcyand receivership to ensure that the mortgage was paid

I unable to remortgage or sell as they have applied £30k of charges in the last two years to my interest only BTL mortgage. So I am in negative equity. Charges have been incurred on the property for works that have never taken place

I have moved into the property in order to have the LPA receiver deinstructed and stop the last trespassers legal poceedings. Plus I need somewhere to live with my family (2nd breech of contract)

My lender never acknowledges any of my correspondence until recently and will not give consent for me to live there. I have offered increased monthly payments? I have asked for a shortfall sell or ability to remortgage with another lender. However they will not agree to anything.

I have made several complaints with the Financial Ombudsman Service since I have been informed that they can only assist with BTL mortgages if I am using it for residential use. (Don't know how true this is?)

OPTIONS

Ideally I would like my lender to give me consent to live there. Or agree for me to rent the property ( each time I put tenants in the property they evict my tenant. This has occurred twice)

If they don't agree to above I would like the ability to remortgage my property at around 75%LTV but I need help finding a lender.

But this is only realistic if they do not apply on the arrears costs to my mortgage

I would even consider a short sale.

Can someone help me with some advice to try and resolve this problems and explore the options stated above

Thanks in advance

dojoman

Did you breach your contract when you went BR?

Psg2008

Hello Dojoman

I was only recently advised that I breached my contract by being made bancrupt in 2010

The second breach is my occupation of a BTL property. Despite asking for consent from my lender for a year prior to moving in.

I moved in to avoid vacant possession plus myself and family needed somewhere to live.

silvercar

Some random points.

A BTL mortgage is unregulated in the sense that the ombudsman has no juristriction over it.

Tenants are protected from evictions in a BTL mortgage ie if you fall into arrears and the lender applies for possession he has to respect the rights of the tenants to remain in their property under their tenancy agreement. Effectively the lender becomes their landlord. If the fixed term tenancy ends the lender can then evict the tenants - just like a landlord can.

Once a lender has secured possession they can and will direct the tenants to pay their representative rather than you.

You cannot live in a property secured with a BTL mortgage without the lenders consent. This for a few reasons - primarily it is to stop people obtaining mortgages with no income and using the supposed rental income to justify the afforadability of mortgage payments.

What stage is the repossession claim at? If the date of repossession is before the start of any tenancy agreement then the tenants would have no right to stay. If you put tenants in and they were evicted they would have a claim against you for denying them "quiet enjoyment" of the property and you could face legal action from the tenant. If the property has been repossessed it is not yours to let!

The mysterious charges could be any of the following:

a) repairs necessary to continue a tenancy
b) legal costs in taking repossession action
c) interest on arrears
d) repairs under local authority rights to make repairs to housing (generally ex-council owned property on estates particularly flats)
e) costs of managing the tenancy after repossession.

Psg2008

Thank Silver car for your input. There are no longer any tenants living with me and my family

It took me over a year to get a breakdown of charges from the lender and LPA receiver

The information I have been supplied only equates to a max of 40% of the charges

I got a list of quotations for works that were never carried out. When I asked for the contractors details to verify the invoice they would not give it to me

Eventually through the complaints process I was told that the contractor either had access issues or the works was not
carried out.

The have charges me call out fees for not getting hold of the tenant on the phone. Around £80 each

I know the works were not carried out as I have to address the faults myself and all the tenant issues whilst the property was under receivership.

As the tenant was treated very badly and I felt bad that she didn't have heating sometimes so I paid to get them address the problems

I informed the LPA receiver and he guided me through what I can and can't do.

Do you think I can put forward any form of defence?

Thrugelmir

Psg2008 wrote: »

Do you think I can put forward any form of defence?

You are in breach of contract and also have broken the bond of trust between yourself and the lender. So the judge is unlikely to find in your favour. As the relationship is most certainly is irrepairable.

silvercar

What state is the repossession at the moment?

Remember also that providing you sign nothing acknowledging the debt, any shortfall goes into your bankruptcy. Be very wary of signing anything, even if the lender tells you that you need to in order to provide information you seek.

What is the property value and what is the total mortgage including arrears and including (a) the agreed charges and (b) all the charges they claim.

Remember that they will also charge for repossessing, their court costs, legal and estate agents costs in selling.

If all this results in a shortfall which ever way you look, then it is all in your bankruptcy in any case, so fighting it may be worthless.

Given that they have a right to refuse you permission to live in it, by doing so the interest will mount, their charges will mount and all be added to the amount owing. They can charge interest and mortgage payments until the property is sold.

You can out firward a defence against repossession - it will fail in all probability as you have breached the mortgage conditions by living in the property, but it could delay their possession and give you some time to find somewhere to live.

You need to do some calculations on whether it is worth continuing to pay the mortgage.

Psg2008

I have a court hearing in December and my only defence is based on human rights.

I also have a pending Financial Ombudsman Service investigation. I am no longer worried about the shortfall as it will go into my bancrupcy

I am more concerned about my family being homeless.

If the lender would allow me to rent the property I would use this amount to obtain accommodation. But they keep on evicting my tenants

Psg2008

I would like to mitigate the £30k that has been added to my mortgage account for repairs that have not taken place or did not exists

The reason why I know the repairs did not exist as I had to repair the property myself.

How do I bring a claim against my lender?

Brock_and_Roll

Psg2008 wrote: »

I would like to mitigate the £30k that has been added to my mortgage account for repairs that have not taken place or did not exists

The reason why I know the repairs did not exist as I had to repair the property myself.

How do I bring a claim against my lender?

Are you taking professional legal advice? I fear you will not get past the starting line with a "Human Rights" defence as the ECHR only applies to cases against governements, local authorities or other public bodies.

Psg2008

Can I ask a question. If my lender seeks possession of my home and there is a second charge on my home for another creditor. Will my lender experience problems when he tries to sell it on the open market as my property is in negative equity

I know that are probably not concerned about the second charge lender.

But won't they need to seek consent of the 2nd charge creditor in order to sell the property at an amount that the 1st and 2nd Charge lender will not be able to recoup the outstanding debt?


Please advise