Mortgage debt limitation

Ash_S

Hi guys!

I had a buy-to-let mortgage with a mortgage company signed up to the Council of Mortgage Lender code of practice. In December 2009, I made my final mortgage payment and wrote to the mortgage company telling them I could no longer keep up payments and that they can repossess the property (I also enclosed the house keys). I never received any written replies and carried on with my life. In July 2015, I received a council tax demand from the council saying that I was responsible for the council tax until May 2014 (the date the property was sold by the mortgage company - 5 years later!!!) and after a few exchanges with the council, the matter was settled.

As it's now fast approaching 6 years since I made my last mortgage payment, is it correct that the date of default is the first date I missed the mortgage payment (January 2010) or the date when the property was sold (May 2014)?

I would appreciate your opinion/advice..

kingstreet

This isn't governed by the CCA so six years doesn't apply.

The lender can chase for any shortfall for twelve years.

Ash_S

Thanks for your reply.
So would it be 12 years from first missed payment or date property sold?

kingstreet

I suspect that as the lender will not know its total loss until such times as the asset is sold and the account finalised it runs from when the property was sold.

However, this is not my area of expertise, so seek professional advice from a solicitor with experience of housing repossessions.