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Max Lowry
Max Lowry, Advocate
Category: Bankruptcy Law
Satisfied Customers: 80
Experience:  LLB, 10 years post qualification experience
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we have a rental property that has been placed in the hands

Customer Question

we have a rental property that has been placed in the hands of a reciever who has allowed arrears in mortgage to increase they have not paid utility bills which were included in the tenants agreements they have now failed to replace tenants that have left although people are wanting to take on the rooms. This situation has gone on for a year and now they are recommending sale with £140,000 neg equity.
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  Alex J. replied 3 years ago.
Thank you for your question and welcome to Just Answer.
Who appointed the receiver?
Is the proposed sale price the going market rate?
Kind regards
Customer: replied 3 years ago.

Hi AJ,

Good to hear from you.

The receiver, Touchstone CPS Ltd, was appointed by the lender, The Mortgage Business, on 2nd August 2012. The rental income at the time was £2,916.66pcm, easily sufficient to pay the mortgage of around £1,850.00 and all the bills (Council Tax, TV License, Gas, Electricity, Water, etc).

However, they have refused to pay any of them (even though it states in the lodger agreements that these bills are covered in the rent). This has meant that the suppliers of each of the above have not stopped chasing me for the outstanding sums, have added charges and penalties and, so far, in one case (Anglian Water) has taken out a CCJ against me.

Due to my employment in financial services, this could seriously affect my ability to earn a living as will a repossession of the property.

They have allowed 3 of the 7 tenants to leave without attempting to replace them and appear to have had no regard of their duty of care to me. The arrears on the buy to let mortgage have increased by over £10,000 since they took over responsibility for the property and there is now insufficient rent to cover all the bills.

I suspect that this has always been their intention, i.e., to have the property repossessed and sold.

The valuation recently carried out on the property was done by a surveyor (in my absence) but they didn't have access to the ground floor apartment connected to the back of the property so was not very accurate. I was advised by the lender, who had just received a report from the receiver, that the property valuation was £280,000 - £300,000 and the rental valuation, £700 - £895pcm. The later is obviously nonsense and the former is probably out also but it's difficult to tell as the property would be sold with vacant possession following the 2 month's notice they intend giving the remaining tenants and anything could happen to the property in that time. As an inhabited and well-maintained property it would probably fetch between £300,000 to £325,000 but I can't be certain without a proper valuation.

Before the downturn in the economy, it was valued by the lender's surveyor at £470,000. The original mortgage was £400,000.

I have another question please; I met my wife about 2.5 years ago and we married about a year ago. The property was remortgaged to TMB in Dec 2007 (purchased Jan 2007). Is there any way the lender and other creditors from before the marriage can come after my wife due to the mismanagement of my own financial affairs?

I look forward to your thoughts and am available all day if you have any question.

Many thanks.

Best wishes,


Expert:  Alex J. replied 3 years ago.
Thank you.
I am going to review this now and will revert to you asap.
Kind regards

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