House Repossessed and charges..surely this can't be right?

Nimbles

Hi all, I'm quite new here so not sure if I've posted this on the right forum. To try and cut a long story short, I had my house repossessed May 2013, my mortgage was for £40,500 and around £200 a month. The house was sold August 2013 for £45,000 and I was told there was a shortfall of just on £10,000. I've scanned a copy of the letter but don't know how to post it up on here. There's a charge of nearly £12,000 interest and ground rent of £4,592 plus others. Would be glad of any help as I was sent a statement in Feb 2013 saying the interest charges were at £664...how have they managed to add another £11,000 in a matter of 6 months and what is ground rent?? Many thanks x

kingstreet

If this was a leasehold property and you have failed to pay the charges for the property, these have to be paid by the mortgage lender and would be added to any arrears.

Ground rent and service charges would fall into this category and shared ownership rent, if that applied too.

Then there are charges for the legal work, arrears charges and the interest for the actual mortgage.

Nimbles

As far as I am aware it was a freehold, it was an ex council house that we bought privately. I understand about the other charges being added but £12,00 in interest on a £40,000 mortgage that was sold within 3 months of it being repossessed is surely a lot?

ACG

Have you asked them how they came to this figure?

tomtontom

Ground rent would indicate it is a leasehold property.

Nimbles

Hi ACG no, I've only received the breakdown today. Here's what it says: Completion date: 27/8/2013
Advance: £40,000
Chaps Fees: £25
Completion Fee: £895
Building Insurance: £111.00
Arrears Charges: £560
Direct Debit Rejection Fee: £30.00
Field Agents Visit: £90.00
Legal Costs; £1,500
Ground Rent: £4,500
Tradesman Costs: £1,900
Interest Debit: £12,000
Credits: Payments made...£9,000
Sale Proceeds £45,000 Total £54,000
Loss on Completion :£10,000.

Nimbles

I don't have the original mortgage to look at whether it was leasehold or freehold but I would have thought buying an ex council house would have been freehold. Maybe I was wrong but I'm still scratching my head as to where £12,000 could have come from in interest charges when it was sold within 3 months of repossession? I had to pay for any work on the house including brickwork, new roof ect...surely this would have made it freehold?

kingstreet

We can only guess that it's incorrect and you are going to have to ask someone to check it for you.

ACG

I think you need to get on the phone and question it. It does seem wrong but only they can confirm it.

Nimbles

Thanks Kingstreet, would there be anyone on here who could help me as I don't have the money for a solicitor.

kingstreet

I meant call the lender.

You seem to have entries you think don't apply to your property,