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Hello and thank you for your question. I will be very pleased to assist you. I'm a practising lawyer in England with over 15 years experience.
I am sorry to read of the above in particular your life threatening experience. May I clarify your concern being that if you lost your defence that it may affect your ability to work in certain countries / employers?
Thank you. I hope I am going to be able to put your mind at rest at least in relation to your concerns about work and immigration issues. The appointment of an LPA receiver is a civil issue. It is in no way a criminal matter and therefore regardless of the outcome will not result in any form of criminal record of any kind. A criminal record is what sometimes will prevent you from being eligible for countries' visa waiver programs. In terms of immigration regardess of the outcome you should be able to travel visa free at least on tourist visas.
That said it is possible, though not as a direct result of the appointment of a LPA receiver that the lender could at some point in the future seek to bring insolvency proceedings against you. I do not suggest this is likely, simply that it is a possibility if the charge descends into negative equity. If that were the case and you were made bankrupt, this would produce a record which is public for a period and serachable for a fee for a longer period. This could impact upon certain work or residency based visas in certain countries. If you are in the habit of applying for work based visas as part of your job you can check with either any immigration agent you use for your applications or the relevant country's embassy as regards ***** ***** UK bankruptcy record would have any negative impact on work visa eligibility.
Finally in respect of your work, only comparatively few professions have restrictions on bankrupts working - solicitors and accountants have issues along with people who need a licence from the Financial Conduct Authority. Certain other professions have rules about bankruptcy but not usually rules that result in no longer being able to practice. If you have to be registered with a professional regulator to do your job you ca check their rules (if any) re bankruptcies but in the main jobs and employers do not disqualify for bankruptcy.
Does the above answer all your questions? If it does, I should be very grateful if you would kindly take a moment to click a rating for my service to you today. Your feedback is important to me. If there is anything else I can help with please reply back to me though
Thanks for the above. Forgive me, are you able to kindly clarify your query? I'm not quite certain what you are referring to here: "How do you think that things get contracted?"
I am very familiar with LPA receivers unfortunately - an area of law very over time to be regulated. May I ask a few questions in relation to the loan:
Thank you - could you just help with the other two questions then I think we are there. The reason I am asking these questions is I am trying to understand the basis that they have registered a commercial loan as its not possible on residential dwellings except in limited exceptions.
Thank you. Based on what you say I consider that it may be unlawful for the commercial loan to sit outside of the regulated consumer market. It appears to have been set up as a bridging loan in order to sit within one of the narrowly defined exemptions from what would otherwise have to be a regulated consumer mortgage. The bridging loan exemption requires that it is a temporary bridging finance used for the purposes of purchasing additional property.
From what you say you did not use the money to purchase additional property but it was intended and used for refurbishment and care home costs amoung other things. This does not qualify for the exemption from the regulated mortgage requirement. So whether you can seek redress under the regulated mortgage framework - i.e. access to the Ombudman etc will depend upon what you can show you told the lender as regards ***** ***** of the loan. If you told them what you actually needed the money for, or at least that it was for something other than the purchase of land, then the mortgage would appear to be a breach of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 and therefore there is a grounds for a report to the Financial Conduct Authority who should take steps to require that the mortgage is brought within regulation which in turn gives access to the FO and so on.
If you cannot show that you told them you intended to use the money other than for the purchase of property then I cannot see that you could bring the loan within the regulated market easily. You could potentially refer to misselling as grounds for a complain to the FCA if you feel you were misrepresented what the loan was.
In terms of removing an LPA the starting point is to check the terms of your loan agreement to see on what basis the lender can appoint an LPA R. It will refer to a certain number of missed payments and/or other conditions. If those conditions were not satisified the the appointment was unlawful. Other than as above, the simplest approach is to repay the mortgage - this removes the LPA R because his powers flow from the mortgage. I appreciate that may not be possible now. Another approach is to sell one of the properties in order to pay off the mortgage. The LPA R cannot stop you fro selling the properties yourself and providing a sale raises enough to pay off the second charge as well as any first charge then that it an end to the LPA R. Otherwise due to the lack of regulation it is very difficult to effecteively hold them to account.
Has the above answered your questions satisfactorily?
Thanks for your posts - I am glad the above was of some help. Here is a link to the relevant section of the FCA handbook so you can see the conditions they must satisfy for a bridging loan. The relevant section is "Exclusion for second charge bridging loans" - you can ignore the others they don't apply:
Unfortunately I am not able to act for you as I am not able to accept client referrals introudced to me through this site. You are able to contact me by simply returning to this thread at any time or via my contact page:
Yes I am in the UK. The site is American but this section is staffed by UK solicitors. I am not a member of NARA or RICS - I am not a surveyor so cannot be. I am regulated by the SRA (solicitors regulation authority).
I note that there is a large amount of personal information posted to the thread - including your mortgage offers. I would strongly recommend that I arrange for this thread to be locked for privacy as it is not secure. Would you like me to arrange this?
Please bear in mind that this chat thread is not secure so I would recommend a) you are cautious in what personal information you upload to this thread and b) that this thread is locked for privacy given that you have already uploaded confidential documents. If you could confirm?
My apolgies for the delay in reverting to you - I was out of the office yesterday. Yes please do
Sorry for the delay in reverting to you - I have been in a meeting.
I can see that you have opened a couple of additional threads, but both are locked by customer service so I cant see any contents if you uploaded the documents there. Could you upload them here - I remain concerned about the degree of confidential documents you have uploaded here already though as this thread is not secure. Please remember to ask that this thread is locked once we are done as it is possible third parties could view these documents otherwise.
In terms of next steps, notwithstanding the complaint you have already made, your rights are likely to be strengthened most if you can demonstrate that the product was not lawful - i.e. you told them what the money was to be used for and that it did not qualify as a bridging loan. Alternatively if you can show that it was missold to you or that they encouraged you to apply in a particular was so that it appeared your requirements were what they needed them to be for a bridging loan when they wern't. If you can demonstrate one of these things, ideally the former, there are grounds for a complaint to the FCA and from there dependent on the outcome if the product is judged to be a regulated mortgage agreement (which in my view it should be if the money was not being used for purchase of other land and they knew this) you may be able to access the Ombudsman and seek compensation and removal of charges, defaults etc as appropriate.
At the same time the appointment of a receiver does not stop you selling the property providing from the sale proceeds you can pay off the whole of the charge as well as any other charges on the property. Providing you can pay off their charge in full then the power of the LPA Receiver immediately falls away together with any other rights of the lender. The LPA receiver does not have the power to prevent a sale - you are still the owner of the property.