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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 13590
Experience:  I have been practising for 30 years.
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I took a buy to let when I needed to move on the advice of a

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I took a buy to let when I needed to move on the advice of a broker. It was never an investment more a convenience to buy a larger house.
I got into financial trouble and became homeless used rent for priority living, tried contacting lender through email which they say was not received as there in box was full.
Became 5 months in arears.
Rang them once in house with phone and they said they had just past it to LPA team.
Offered to give them full rent £450 mortgage is £200 a month. It would have taken 4 months to catch up.
They refused and management company told tenant they couldn’t guarantee she would not be evicted on three occasions. I assured her this was not true, and they told her its nothing to do with me as its in receivership. She left.
Now its not financially viable and the bank are responsible.
I was selling it through an auction company for quick sale to end this as the bank is eating my equity with the management company’s charges, went today to let a viewer look at it and the property has had its locks changed.
The lender says its not up to me and I must wait for decision of management company to see if they will find another tenant, which I am not happy with someone else vetting a tenant that I will later have to manage.
Can I go change locks and sell it through quick sale and pay the bank back? There charges are a joke for a company that’s not managing it rather the opposite!
JA: What steps have you taken so far? Have you prepared or filed any paperwork?
Customer: No, bank say I have no options what can I do?
JA: Have you talked to a lawyer about this?
Customer: Have no money so No
JA: Anything else you want the lawyer to know before I connect you?
Customer: NO
Hello,
I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.
I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
Thank you!
Nicola
Customer: replied 2 day ago.
Have you got solicitors that no property law ?

Good morning. I will assist with your question - be aware this is an email not chat service therefore i may be delayed in replying.

to clarify -

why did you not live in property?

what did you do with the rent?

who is the management company?

is it up for sale at moment?

Customer: replied 2 day ago.
Is a buy to let property
Was homeless with my son, bought food and survived with the rent
Management company are hired by the bank in my name
I listed it up for sale with a quick sale auction company, I went to show potential buyers round but could not access the property as locks have been forcefully changed
Customer: replied 2 day ago.
it is for sale! The lender say I can not sell it as its up to the management company

I so sorry to be negative about this but good luck with your problem. I’m afraid you are going to need it because the powers of LPA Receivers are Draconian.

Until you have paid the arrears completely up to date (which you are liable to do regardless) you have no chance of getting the LPAR removed.

Indeed, even if you have paid the arrears completely up to date, the chances are that you will never get them out if the lender thinks that there are ever likely to be problems with the property again, and even then, if you can prove that there are not, they can simply take a hard line because, under the Law of Property Act 1925 they are allowed to do this and they are also allowed to do it under the mortgage conditions.

The legislation is extremely out of date and there are calls for it to be amended as you will read on this website

http://www.property-forum.co.uk/

There have been many incidences of LPAR mismanaging the property and selling undervalue however the problem you face is that to take the lender to court and to take the LPAR to court for breach of fiduciary (financial) duty would incur’s considerable legal costs which the majority of borrowers, having just paid arrears off, are not in a position to do.

It could easily cost between 10,000 and £20,000 to take a lender to court although you would get back cost back in the event your claim was successful.

At this stage in time, it would be worthwhile putting all the papers in front of a barrister who specialises in such matters to get an initial advice.

Barristers advice in respect of this will properly cost between £600 and £800 plus VAT but at least then you will know whether it is worthwhile taking the lender to court.

I’m sorry that the most of this is not the answer you were looking for but there is no point in me misleading you.

I have a duty to advise you truthfully and honestly, even if the answer is unfavourable.

Can I clarify anything else for you?

I am happy to answer any specific points arising from this.

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Thank you.

If you still need any points clarifying, I will still reply because the thread does not close.

Best wishes.

FES

F E Smith, Advocate
Category: Law
Satisfied Customers: 13590
Experience: I have been practising for 30 years.
F E Smith and other Law Specialists are ready to help you
Customer: replied 2 day ago.
What could they do if i Forcefully changed locks and found a buyer?
Customer: replied 2 day ago.
How is this enforced no court or police have been involved? What could they do if i Forcefully changed locks and found a buyer?

You no longer have control of the property. If you force the locks, it’s criminal damage.

You cannot sell the property while the LPA receivers are in control.

No solicitor would sell the property and no buyer would buy in the circumstances.

All the arrears have to be completely up-to-date and then you have to make a court application if the lender will not get rid of the receivers.

Customer: replied 2 day ago.
The law is barbaric, it’s been proven mortgages are illegal and the banking system is carupt yet this alleged law is preventing me releasing my £25,000 equity and pay the banks dept back! Thanks for your time!

I agree with you completely.

This law which is almost 100 years old makes the lender in effect judge jury and executioner.

Unfortunately, the government seems to be more intent on making sure that parking companies can enforce charges on private land and such other useless statutes than it is in actually dealing with something which is relevant. Don’t blame me, I don’t vote any government in because I think they are all incompetent liars.

I could not agree more that you are in a Catch-22 situation but what’s happening of course is the LPAR are lining their own pockets to your detriment. The sooner the law gets changed, the better but as far as I am aware, it’s not happening any time soon more is the pity.

Customer: replied 1 day ago.
Am not blaming, solicitors are trying the good fight. I don’t believe voting either. Thanks for your time I wish I had some money to tip you. Have a nice weekend!

Please don’t worry about the tip, it is the thought that counts.

Have a good weekend yourself sir.

Kind regards.

FES