How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask James Mather Your Own Question
James Mather
James Mather,
Category: Law
Satisfied Customers: 22629
Experience:  Senior Partner at Berkson Wallace
Type Your Law Question Here...
James Mather is online now

I own a property on buy to let. Property fell into arrears

Customer Question

I own a property on buy to let. Property fell into arrears due to property being vacant. Lenders wanted to repossess but tenants moved in, lenders transfered the property to Receivers. Eventually all arrears were paid off. I requested return of the property. Lenders refused. Lenders contacted me several months later for a review of my circumstances stating that if the outcome was good, they would consider returning the property. They were happy with the financial assessment but required me to pay £2,600.00 to cover their fees for instructing Receivers. I was happy to pay this fee on the confirmation that the property will be returned to me as their correspondences were vague on this point. Eventually they concluded that they will not return the property unless I pay back the whole loan. I was crushed. In the interim, the property was no longer in arrears, indeed, about £3000 has been paid over and above the mortgage due (confirmation by the lenders). I then received a one line email few weeks ago from the Receivers to inform me that they have closed their books and returned the property to the Lenders and have recommended sale of the property because the tenant left. I was prepared to find another tenant immediately but the Lenders will not allow me to do so. They have now put the property on the market not minding that it will put me in negative equity of over £20,000. what shoudl I do?
Submitted: 5 years ago.
Category: Law
Expert:  James Mather replied 5 years ago.
Is this lender MX by any chance?
Customer: replied 5 years ago.

Yes, Mortgage Express

Expert:  James Mather replied 5 years ago.

It seems to be the week for it. The question
has cropped up loads of times this week. It is probably Dryden's solicitors who
are dealing with this and they have thousands of these. MX are trying to
offload their book because they have a lot of toxic debt and they are using
every trick in the book to get rid of these cases.

Unfortunately, you shot yourself in the foot with
regard to their fees.

It would have been easier to pay their fee
and then rely on their agreement to return the property to you than argue the
toss and end up in the situation that you are now in.

Once the property is in hand of LPA receivers,
it is virtually impossible to get it back, unless the lender consents. The
reason is that if the property were handed back to you, it can fall into
arrears again if the market changes or you no longer have the tenant. It would
almost be like a lender lending tenant with a poor history of payment, more
money. They simply do not do it.

There are tens of thousands of landlords in
the same situation as you are in, and there is no magic solution. It might be
worthwhile subscribing to this forum because you may get some ideas

You would need an expensive court action and
some proof that the lenders were acting or the receivers were acting illegally.

It is not going to be an easy battle

I'm sorry I cannot give you a definitive
answer to this, but I am afraid that there is not one. Can I help further?

Please don't forget to positively rate my
answer service (even if it was not what you wanted to hear) and I will follow
up any further points you raise for free. If you don't rate it positively, then
the site keep your deposit and I get 0 for my time. If in ratings you feel that
you expected more or it only helped a little, please ask me for further info
before rating me negatively otherwise I don't get paid at all for my time and

The thread remains open. Thanks