Help please! Court on Thursday...

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    Help please! Court on Thursday...

    Help please! I have been summoned to court this thursday (21/1/10) re repossession of a BTL property that I own. The situation is this... I have owned the property for 5 years and until 6months ago never missed a payment. Then very bad tenants moved in and, due to this and other circumstances, I havent made a payment for 6months and currently the arrears is c£4000. My questions are these... What is the most likely/best case/worst case scenario that can happen in cort on thursday? Can the judge order repossession there and then?? Can i Appeal?? Thanks in advance for any speedy response!!

    #2
    Originally posted by pompey99 View Post
    I havent made a payment for 6 months and currently the arrears is c£4000. What is the most likely/best case/worst case scenario that can happen in cort on thursday?
    Unfortunately, you own the property, you agreed to pay the mortgage / loan, and it's you that has defaulted. The court case is to reposess the property, and if you can't pay the arrears, and /or contract to start paying now, then your property is likely to get repossed there and then.

    I assume your teants were not paying the rent, which is why you could not meet your obligations. Irrspective of this, you may be able to show that problem tenants have gone, or are being told to go, and if your mortgage company can withold the repossession for 3 months, that you will have new tenants in, and continue to pay the mortgage ( BTL ). or say to the court, the problem will be solved shortly, and you will borrow £ 4000 to pay the arreas, and start paying the next monthly payments .. ( you could have new tenants in by then).

    Either way, you have to show you can correct the problem of arrears, AND continue to pay in future, or you lose your property.

    Not much help, but only you can solve the problem. At the worst, you will get paid the selling price of your property, less arrears, less money owing, which could be more than the £ 4000 already owned.

    In future, have 6 monts rent in the bank to cover late payments / vacant property, and add this to your rent calculations, or if you lose your property, you may be better off without it

    I have never liked buy to let, as you can buy the same property for less then the rent charged per month.

    Best of luck.

    R.a.M.

    Comment


      #3
      Originally posted by ram View Post
      I have never liked buy to let, as you can buy the same property for less then the rent charged per month.
      Read as "I have never liked buy to let, as your monthly mortgage payments are usually less than the likely amount of rent charged per month".
      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
      2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
      4. *- Contact info: click on my name (blue-highlight link).

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        #4
        Originally posted by jeffrey View Post
        Read as "I have never liked buy to let, as your monthly mortgage payments are usually less than the likely amount of rent charged per month".
        Correct.
        But the court case has been and gone, - I didn't look at the post date, but just saw "court case tomorrow, Thursday. . . . and no one had answered.

        silly me.

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          #5
          Well its Thursday now so lets hope the case went ok.

          Basically if you can show to the court that you can afford the mortgage plus a reasonable monthly amount for the arrears,the court will make a suspended possession order.

          The arrears can be repaid over a period of years although it's better to clear them as soon as possible.

          If an outright order has been made, you can apply to the court to vary the order to repay the arrears over time.

          Good Luck.

          Comment


            #6
            Originally posted by ram View Post
            I have never liked buy to let, as you can buy the same property for less then the rent charged per month.
            If that was NOT the case, I expect there would be far fewer Landlords out there....

            Comment


              #7
              Originally posted by VicLet View Post
              If that was NOT the case, I expect there would be far fewer Landlords out there....
              Hasn't always been the case though - remember when interest rates were >15%? Many landlords have been in the business on the basis of assuming capital gains rather than regular income.

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