Tenant aware that landlord has mortgage arrears- effect?

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  • harry1001
    replied
    Michael,

    What could actually work in your favour is that Mortgage Express, part of Bradford & Bingley, is doing what it can to offload its mortgage book - I have 2 btl accounts with them and they even offer to assist in remortgaging elsewhwere. They are not taking on new business.

    Therefore, if you approach another lender and get an agreement in principal, then you might well find ME (no, not me, Mortgage Express) only to pleased to help.

    Now, the clever bit. And I'll let you into a secret - get a few valuations from various estate agents, then apply for a mortgage from any other lender, but............................................... ....now, I think you'd better PM me (me, this time, not Mortgage Express) for the rest. Nothing illegal but I might want to repeat this method of buying property at a reduced price!

    This situation could easily turn out very much to your advantage. No promises but worth a try.

    Harry

    Leave a comment:


  • Michael Hubbard
    replied
    Hello kikuyu, Jeffery.

    Thanks again for your input.

    I actually just rang both the solicitors and Mortgage Express. A bit of a tale of two cities!

    The lady I spoke to at Mortgage Express, although unwilling to go into any case details, couldn't have been more helpful, asking me to draft a letter to send/fax to their credit control section, including the address of the property, the details of the case and my proposal - i.e. asking to remain as tenant for a couple of extra months, or potentially purchasing the property.

    The lady I spoke to at the solicitors was actually a bit of a dragon, only answering the phone 'hello' without mention of the firm's name! (Who says the public sector isn't at least good for enforcing customer services standards!) She also didn't indicate that I could have any impact on the proceedings though I think this might be more to do with her demeanour that the process.

    So in summary, yes, I will take the advice of both of you and contact them both.

    Out of interest, what typically passes as a reasonable time to vacate? And sorry, my mistake, I should have said it's five months till the end of my current agreement, not 4. Damn GCSE teaching methods...!

    Many thanks.

    Leave a comment:


  • jeffrey
    replied
    Originally posted by Michael Hubbard View Post
    How best would it be to go about contacting Mortgage Express, just ring them up on their customer services line and explain the circumstances without any particular reference etc? I haven't had any correspondence directly from them, only from the solicitors acting on behlaf of Mortgage Express.
    I'd start by contacting the company direct, pref. by letter, to explain briefly why you have been placed in your present unfortunate position.

    Leave a comment:


  • kikuyu
    replied
    Originally posted by Michael Hubbard View Post
    Hi Jeffrey,

    How best would it be to go about contacting Mortgage Express, just ring them up on their customer services line and explain the circumstances without any particular reference etc? I haven't had any correspondence directly from them, only from the solicitors acting on behlaf of Mortgage Express.

    Thanks alot. All new to me this!
    I would write to the solicitors and ask them to take their client's instructions on the matter.

    Don't forget that it will be a while before the case goes to the CC and by then your landlord may settle the matter with his mortgagee. Even if the property were to be re-possessed, then the Court will give you a reasonable time to vacate. By then you will have exhausted the 4 months left on your tenancy.

    Leave a comment:


  • Michael Hubbard
    replied
    Hi Jeffrey,

    How best would it be to go about contacting Mortgage Express, just ring them up on their customer services line and explain the circumstances without any particular reference etc? I haven't had any correspondence directly from them, only from the solicitors acting on behlaf of Mortgage Express.

    Thanks alot. All new to me this!

    Leave a comment:


  • jeffrey
    replied
    Mortgage Express is the company that caused the problem; so start there. It might well be happy to let to you, rather than:
    a. leaving the property empty; or
    b. having to sell at a forced-sale reduced price;

    AND it might agree to sell to you

    Leave a comment:


  • Michael Hubbard
    replied
    Hello Jeffrey, Poppy.

    Thanks for your feedback.

    Jeffrey, thanks, I've already had a read of that thread and feel, unless I've missed something, that it doesn't specifically answer my questions. Thanks for pointing me in the direction though.

    Poppy, the agency who manage my property on belhalf of the landlord have already offered (by e-mail) that they're happy to let me leave my tenancy early due to the potential of this situation arising so hopefully that base is covered!

    I've actually taken the day off work today to start sorting this out, have a look for alternative accomodation etc. However I'm looking to buy soon (haha will the time ever be right!) so if they were prepared to let me stay on till the end of my tenancy then that would be great timing (though I don't know if i'd want to offer to buy the property I currently rent) hence my interest in this potentially remaining at the property for the nex four months till end of my current 'contract'.

    I also have to admit I don't want to come out of this situation feeling like i've been "p!ssed on" and want to maintain some level of control over my own circmstances (though I appreciate I only have so much!!)

    Who should I contact, the solicitors or Mortgage Express?

    Thanks for feedback.

    Leave a comment:


  • Poppy
    replied
    You've got the heads up now. Time to look out for yourself.

    Contact your landlord with the intention of leaving your tenancy early. Start looking for alternative accommodation that you are happy with. You certainly don't want to find yourself having to accept something in a hurried manner. Little point in trying to negotiate with the mortgage lender, although there is nothing to prevent you from trying.

    Leave a comment:


  • Michael Hubbard
    replied
    Landlord has potentially defaulted on mortgage

    Hello,

    LTRFTW - I was wondering if your knowledgeable selves could provide me with some (non-binding!) advice please.

    I am a tenant who recently received a letter from a solicitor stating that they have been instructed by, and are acting for, Mortgage Express to make a claim to my local county court for possession of the property I rent.

    The solicitor says they cannot offer any legal advice due to a conflict of interest (fair enough).



    However, I'm interested in the following:

    Should I e-mail the solicitor indicating my interest in remaining in the property till the end of my tenancy (4 mouths from now) bearing in mind the housing market and ask for consideration whether Mortgage Express would consider letting me remain? Do I need any rent payment history documents etc?

    Or should I contact the judge at the county court about this?

    Also, should I let the property management agency who looks after the property on behalf of the landlord know?

    I've arranged a meeting with the helpful Citizen's Advice Bureau this Thursday to discuss it further with them then. I'm not sure about the type of mortgage (e.g. BTL) the landlord has nor the extent of their debt.



    Could someone please offer some advice on the above or with any additional wisdom/experience??

    Many thanks

    Michael

    Leave a comment:


  • Seminole
    replied
    An update.

    We have now found out that the landlord does not have a buy to let mortgage or consent from the mortgage company (one of the sub prime sharks that will repossess at the drop of a hat).

    The landlord has said that they will seek consent but that it will be put on their to do list. Frankly, we do not believe them. I suspect that it is unlikely that a mortgage company would grant such consent if the mortgage is already in arrears. Does anyone have any experience of this?

    The question is what do we do now? We do not want to be unreasonable and we certainly do not want to make the situation even worse. The fear of losing our home could easily become a self fufilling prophecy.

    On the other hand, the landlord is, I think, in clear breach of contract. In the tenancy agreement it states that they have all relevant permissions to let the property.

    I think we have three main options:

    1) Sit tight and hope it works out.

    2) Inform the mortgage company ourselves

    3) View the contract as breached and void and seek another property suing the landlord for any costs incurred.

    We are going to seek legal advice but would welcome any opinions from this forum.

    Leave a comment:


  • MrJohnnyB
    replied
    If the lease is obviously approved by the bank then (I believe!) it also binds the bank! Someone will be along with more knowledge of residential property as my knowledge only extends to what I have learnt academically and through my own interest in the subject. Can't beat some real experience!

    Leave a comment:


  • Seminole
    replied
    Thanks for this. That's pretty much what we thought.

    We have just heard that the letting agent believes that there is a buy to let mortgage in place and that gives us some assurance. We will still be asking for confirmation in writing though!

    Leave a comment:


  • MrJohnnyB
    replied
    The lease is null and void if all with a legal interest in the land have not informed and approved any proposal to let the property. I also think it amounts to fraud or something similar. Not too sure on the specifics of AST's.

    But basically think an AST creates a legally binding contract between you and your immediate landlord, and not between you and the land. Ie if it was a commercial mortgage which was pre-approved then obviously it would tie to the land and the bank would have to honour it. As I soley deal with commercial premises I cannot be 100% I believe the bank would just be able to kick you out if they obtain a possession order.

    Leave a comment:


  • Seminole
    replied
    Tenant aware that landlord has mortgage arrears- effect?

    Does anyone know whether a landlord's failure to notify their mortgage company that they have let the property, is grounds for voiding a tenancy agreement?

    We have become aware that our landlord has 3 months arrears on the the mortgage on our property. We have just taken out a 30 month Assured Shorthold Tenancy with a 12 month break clause.

    We're concerned about our lack of rights if they haven't disclosed the letting of the property to the mortgage company. We want to work with the landlord to help them resolve their problem but are wondering what the position is if they haven't disclosed and we want to get out. In other words, in these circumstances can we walk away from the tenancy?

    Leave a comment:


  • jeffrey
    replied
    Receivers do NOT become your L.

    A 'receiver' is merely an agent appointed by a creditor (usually, a mortgagee/Bank) to protect its security and recover debts which the debtor/borrower (your L) owes to the creditor. It is a representative, not a replacement, although it does have power to direct other parties (e.g. you) to pay the receiver instead of the debtor (your L).

    Leave a comment:

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