Voluntary Repossession

Delabodes

Can anyone give me advice on the easiest/smoothest way to carry out voluntary repossession with my Mortgage Lender?


The house is in negative equity, I intend to go BR in a couple of months.

alltaken

I'm sure somebody can offer better advice than I, but here is my take:

I see that many post the keys back to the lender recorded delivery or pass them to the OR. Asking them to take the keys is something that 99% of lenders reject, hence the recorded postage.

I think you touched on signing a deed of acknowledgement before, but stay clear of signing anything acknowledging the shortfall.

Send the keys along with a letter explaining that you will not contest repossession and have abandoned the property. Even with all of this I have seen many threads showing lenders still moving at a snail pace.

National_Debtline

Hi again Delabodes


Alltaken's advice is sensible. They are right to point out that you may not be able to force the lender to speed things up, so be prepared for any repossession and sale process to drag on into your bankruptcy.


Once you have gone bankrupt, you can forward any repossession/shortfall-related correspondence to the Official Receiver's office handling your case.


Dennis
@natdebtline

luvchocolate

Remember you are still liable for council tax and insurance until repossessed by your lender,this can take some time

sourcrates

We did this in 2007.

Cleared the house out, sent the keys back to the lender by special delivery, along with a letter of explanation.

Took them about a fortnight to come and physically talke possession, house went on market, and was sold within 3/4 months.

Was the least painful option for me at the time, although I had to leave my brand new shed as it was too big to transport, someone got a bargain !!

TheGardener

luvchocolate wrote: »

Remember you are still liable for council tax and insurance until repossessed by your lender,this can take some time

But of course not the current financial year assuming you go BR before April or any arrears. If the house is still unsold by April 2017, then you will be liable for CT and I think (check) bricks and mortar insurance

CIS

luvchocolate wrote: »

Remember you are still liable for council tax and insurance until repossessed by your lender,this can take some time

A person remains liable for the council tax charge even after re-possession - only when the property is sold on or occupied would the liability cease.

A Class L exemption would be applicable though and would need to be claimed by the actual owner.
http://lgfa92.co.uk/council-tax-repossession-class-l-exemptions/

Craig

TheGardener

CIS wrote: »

A person remains liable for the council tax charge even after re-possession - only when the property is sold on or occupied would the liability cease. Craig

As a provable debt - the current financial years CT and any arrears would fall into the OP's Br would it not? If the OP's house was still not sold by April 2017 - the liability would resume?

CIS

TheGardener wrote: »

As a provable debt - the current financial years CT and any arrears would fall into the OP's Br would it not? If the OP's house was still not sold by April 2017 - the liability would resume?

If the bankruptcy goes ahead the Council Tax for this year (+ arrears) would be included in the bankruptcy (unless there's joint owners - the other may find themselves then solely liable). In this sort of case the Class L is less of a worry due to the bankruptcy for the OP (although the Class L is better for the local authority)

As you point out - from April 17 the Class L exemption would be essential if the property had not been disposed of as the charge would resume.

Craig

Delabodes

Thanks everyone,

I will be claiming bankruptcy sometime around Feb I reckon, but I want to give the keys back asap, although I suspect my mortgage lender will sit on it till after I've declared bankruptcy.

Ah so if I stop paying council now, all arrears will be taken into account for that year come bankruptcy . Having said that if I stop paying council tax on the empty house, aren't they pretty swift at taking you to court?

CIS

Delabodes wrote: »

Thanks everyone,

I will be claiming bankruptcy sometime around Feb I reckon, but I want to give the keys back asap, although I suspect my mortgage lender will sit on it till after I've declared bankruptcy.

Ah so if I stop paying council now, all arrears will be taken into account for that year come bankruptcy . Having said that if I stop paying council tax on the empty house, aren't they pretty swift at taking you to court?

Presumably you've been paying for now ?

6-8 weeks is the quickest that action would proceed to a liability order (assuming the council are quick issuing a reminder etc). Once they get a liability order then they could instruct an enforcement agent etc the very same day (if they wanted to).

How long has it been empty & is it unfurnished ?

Craig