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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I am a struggling landlord. My mortgage company recently

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Good evening.
I am a struggling landlord. My mortgage company recently instructed lpa recievers to deal with the accounts. I am in in arrears with both the mortgages and services charges, but have made pretty regular payments.
The recievers have told me they are going to serve the tenants notice on 2 of the properties and hand them back to the mortgage company for vacant possession. I will be happy to see the back of them if I am honest, and I know they have to be seen to get the best possible price for me, but one of them is definitely in negative equity anyway.
I just don't want to get stiffed in the meantime.
Whilst the property is empty and for sale who pays the service charge? Council tax? Do they freeze my mortgage or does that debt continue to escalate?

Hello James my name is ***** ***** I will help you with this.

When you say empty, does the mortgage company have possession at this time?

Customer: replied 1 year ago.
No they don't have possession. This is quite recent, they haven't even served the tenants notice yet, but have advised me there plan. I am OK with this, just don't want to get stiffed once they are empty but not sold

Ok - whilst there are tenants then they are liable for Council Tax. Service charge is generally payable by Landlord (you).

But if the Receivers take possession they are liable for the costs (well its added to your mortgage loan).
Once the property is empty then the Receiver is liable for all charges and costs, but in reality these are added to the loan account and you are ultimately liable.

It may be depending on the arrears and what is owing you consider an IVA or going bankrupt. Bankruptcy is a good idea if you dont have any assets as you are free from any debt after 12 months.

Can I clarify anything for you about this today please?

Customer: replied 1 year ago.
Do they have to go to court before repossession? Or can they just take them back and foot me with the bill? Is there anyway we can stop it happening?

No as under the LPA they can just give notice. You would need a Court order to stop it.

They can just serve notice, take them and charge you the costs.

You would need an injunction to stop them.
Can I clarify anything for you about this today please?

Customer: replied 1 year ago.
Thanks for clearing some things up for me.
The bankruptcy thing is something I need to really consider.
What happens. Would I be right to think they take all off my debt, take a chunk out of my wages for a year, and devide it up fairly.
Obviously I won't get any credit after the year has finished

Yes it would be divided up. You will be able to get credit but not straight away. It will take a few years to rebuild your credit so you have a good risk profile.

But it cant be as bad as if the property is repossessed as the bank will want paying.

Does that clarify? Alex

Customer: replied 1 year ago.
Do you know what percentage they would take from me monthly?

Sadly I dont - that is down to how much you earn etc.

I think there is a prescribed formula, but I do not know what it is as I am not usually involved in that stage.

Does that clarify? Alex

Customer: replied 1 year ago.
Thank you

Im sorry its not better news.

If I could invite you to rate my answer before you go today please, otherwise the site does not credit me for the time spent with you today. Thanks and good luck. Alex

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