Patricia Pearl - Small Claims Procedure - A Practical Guide


An excellent guide for the layperson in how to use the County Court - a must if you are intending to start a claim.

£19.99 + £1.50 (P&P)

+ Reply to Thread
Page 1 of 3
1 2 3 LastLast
Results 1 to 20 of 60
  1. #1
    Basic Account Holder nuke em Informative nuke em Informative nuke em's Avatar

    Follow Real_CAG on Twitter

    Cagger since
    Oct 2007
    I am in
    I live in a One Horse Town
    Posts
    567

    Default LPA Receivers

    Does any one have experience of LPA receivers?. I know that they are appointed by the lender "to act for the borrower" ha ha and in effect give the lender "mortgagee in possession" at arms length.

    What can be done about them? Can i file with the court to have the right to sell the property? What tactics work with regards to delays? all info gratefully recieved.

    Similar Threads:
    ....Please don't bother my master 'cos my sister & I might bite you...

    I DO NOT offer legal advice
    -
    "I just say what I say because everyone is entitled to my opinion!"
    Follows
    0
    Following
    0

  2. #2
    Classic Account Holder
    Help the CAG!!
    Make a contribution
    Bona Highly informative Bona Highly informative Bona Highly informative Bona Highly informative Bona Highly informative Bona Highly informative Bona's Avatar

    Follow Real_CAG on Twitter

    Cagger since
    Jan 2007
    I am in
    East Sussex
    Posts
    1,798

    Default Re: LPA Receivers

    You should apply to a Circuit judge for an order that you should have conduct of the sale 91 of the Law of Property Act 192 you need to look at Palk v Mortgages Services Funding Plc 1993 ch 330 and Cheltenham and Glouster plc V Krausz 1997 both are decisions of the court of appeal
    The importance of \Palk is is that iy emphaisises, the mere fact that the mortgae company is seeking posession with a view in due course one day selling the property does not prevent an order being made permitting the mortgagor to effect the sale under section 91

    The judgement we got from An Appeal court judge runs to a number of pages but the crux of the matter is that The Mortgae company will sell your House so under this act you have control of the sale which is supervised by the court can let you have full Judgement if required


  3. #3
    Basic Account Holder nuke em Informative nuke em Informative nuke em's Avatar

    Follow Real_CAG on Twitter

    Cagger since
    Oct 2007
    I am in
    I live in a One Horse Town
    Posts
    567

    Default Re: LPA Receivers

    Thanks Bona, is this done on a N244icon or some other form ? what sort of wordage would i have to use ? can you pm me the stuff please

    ....Please don't bother my master 'cos my sister & I might bite you...

    I DO NOT offer legal advice
    -
    "I just say what I say because everyone is entitled to my opinion!"
    Follows
    0
    Following
    0

  4. #4
    Basic Account Holder nuke em Informative nuke em Informative nuke em's Avatar

    Follow Real_CAG on Twitter

    Cagger since
    Oct 2007
    I am in
    I live in a One Horse Town
    Posts
    567

    Default Re: LPA Receivers

    Bona, can you let me have the full judgement pls as per your last post. Also does anyone know if LPA receivers will pay leasehold managment charges & ground rents?

    ....Please don't bother my master 'cos my sister & I might bite you...

    I DO NOT offer legal advice
    -
    "I just say what I say because everyone is entitled to my opinion!"
    Follows
    0
    Following
    0

  5. #5
    Classic Account Holder
    Help the CAG!!
    Make a contribution
    Bona Highly informative Bona Highly informative Bona Highly informative Bona Highly informative Bona Highly informative Bona Highly informative Bona's Avatar

    Follow Real_CAG on Twitter

    Cagger since
    Jan 2007
    I am in
    East Sussex
    Posts
    1,798

    Default Re: LPA Receivers

    PM me an email address and i will scan in and send how urgent as I am in london all day will tomorrow do


  6. #6
    Basic Account Holder mnoesere Novitiate

    Follow Real_CAG on Twitter

    Cagger since
    Apr 2007
    Posts
    7

    Default Re: LPA Receivers

    Hi Bona,

    sorry to hijack your thread but i thought I might get some input as I am seeking similar info on behalf of a close friend.

    The friend of mine is in similar position and I was wondering if you got any joys with your info request. She had a property taken over by LPA receivers just when she found corporate tenants. The property is now being rented out and the rent covers the mortgageicon with an excess of £500 per month. Additionally, she has at least £80K equity in the property, even after taking cognizance of the drop in valuations due to the credit crunch. She realy wants some input as per how to go about

    a) taking back the property or if not possible,
    b) getting authority to sell the property herself, because she does not trust the LPA receiver or lender to carry out a fair sale.

    Any feedback will be most appreciated.

    tnx
    m.n.


  7. #7
    Basic Account Holder nuke em Informative nuke em Informative nuke em's Avatar

    Follow Real_CAG on Twitter

    Cagger since
    Oct 2007
    I am in
    I live in a One Horse Town
    Posts
    567

    Default Re: LPA Receivers

    Quote Originally Posted by mnoesere View Post
    Hi Bona,

    sorry to hijack your thread but i thought I might get some input as I am seeking similar info on behalf of a close friend.

    The friend of mine is in similar position and I was wondering if you got any joys with your info request. She had a property taken over by LPA receivers just when she found corporate tenants. The property is now being rented out and the rent covers the mortgageicon with an excess of £500 per month. Additionally, she has at least £80K equity in the property, even after taking cognizance of the drop in valuations due to the credit crunch. She realy wants some input as per how to go about

    a) taking back the property or if not possible,
    b) getting authority to sell the property herself, because she does not trust the LPA receiver or lender to carry out a fair sale.

    Any feedback will be most appreciated.

    tnx
    m.n.

    i have had 3 props sold off cheap by LPA receivers, ( the ******s) your friend needs to get a court order so that she can sell the prop herself, never trust an LPA receiver and never communicate with them they do not ACT FOr the borrower!

    ....Please don't bother my master 'cos my sister & I might bite you...

    I DO NOT offer legal advice
    -
    "I just say what I say because everyone is entitled to my opinion!"
    Follows
    0
    Following
    0

  8. #8
    Basic Account Holder pigland Novitiate pigland's Avatar

    Follow Real_CAG on Twitter

    Cagger since
    Dec 2008
    Posts
    210

    Default Re: LPA Receivers

    Hi Nuke em, without prejudiceicon

    I am in a similar situation with mortgageicon Express who are incidentally government owned.
    I have spent 15 years building up a small portfolio of properties. I have been a good landlord and have looked after my properties and my tenants. I didn't know about this LPA loophole, had I have known I would never had put myself in this point of risk. So I question the validity of their right to instruct an LPA. I work in property I have had banks cutting my credit lines in other formats and my business is now in jeopardy. I have run up credit card bills and have found this site to be a lifeline in order to deal with these.I have been struggling for about 6 months now. My light at the end of the tunnel was just as the interesticon rates have dropped I started to get myself back on my feet. Unfortunately in the meantime I've just had a tenant who was made redundanticon did not pay the rent, and left the property in a bad state. In order to re-let it I had to refurbish it, whilst it was empty I didn't have a rental income. Unfortunately I had to rob Peter to pay Paul and I wasn't able to pay other buy-to-lets mortgages. I am now up to two and a half months in arrears. My fixed rates have just finished and I'm now on a lower standard variable rate so it would now be easy to clear the arrears. However mortgageicon express have instructed joint LPA's (whatever that means).
    Now to me it looks like these banks need to shore up their balance sheets and need to grab as many fees as possible. The LPA route works wonders for them. They earn money and repossess the property, you lose everything. This is in effect stealing my income and pension.

    I've now had enough and as an entrepreneurial type now think why bother. In the meantime can anyone offer any advice to challenge the use of LPA's I can see this thing escalating and many people like me losing their investment properties and income and then being forced into bankruptcy and eventually becoming a burden on the state. I really am very sad about the way these banks/government are now running the country and need any advice i can get to challenge them and to save my living. Thank you.

    Follows
    0
    Following
    0

  9. #9
    Basic Account Holder nuke em Informative nuke em Informative nuke em's Avatar

    Follow Real_CAG on Twitter

    Cagger since
    Oct 2007
    I am in
    I live in a One Horse Town
    Posts
    567

    Default Re: LPA Receivers

    hi

    the only defence is
    a) check your mortgageicon doc that you signed, within it it has to say that they can appoint LPA receivers or it may say appoint receivers, if it does not they cant, you may have to do a CCA Request to dig that on eout, it will help if your loan was sold off, ie securitized, then you can go after hedge fund etc who bought it, bet they dont haver the original mortgageicon you signed!
    or
    b) go to court and get an order ( cant remember which section you apply under, maybe Ell-en knows) that gives the power ( over a reasonable time) to sell the property yourself

    my best one, was they sold a 200k property for 100k, even allowing for the decline in market values, that was a complete give-away. ( They probably had someone lined up for that, can't prove it of course but knowing what ******s they are , that's what i reckon happened in at least one of my props)

    ....Please don't bother my master 'cos my sister & I might bite you...

    I DO NOT offer legal advice
    -
    "I just say what I say because everyone is entitled to my opinion!"
    Follows
    0
    Following
    0

  10. #10
    Basic Account Holder pigland Novitiate pigland's Avatar

    Follow Real_CAG on Twitter

    Cagger since
    Dec 2008
    Posts
    210

    Default Re: LPA Receivers

    Hi Nuke Em,

    Thank you for your reply! It's so nice to have people to spin this off.


    I see you mention cca, do you know if this would this be the same as requesting a cca for a credit card? Ie sending a £1, would I have to do this for each account? I understand BTL loans are not usually regulated by the Financial Services Authority (FSA) or the consumer crediticon Act;

    I believe this situation is going to escalate and many people are going to want to know how to deal with LPA's, particularly as it appears the government owned banks such as mortgageicon Express and Northern Rockicon are instructing them. I feel a lot of this situation is arising because banks need to shore up their balance sheets; by instructing LPA's it is lucrative as they charge extortionate fees to do this, also and when they dispose of the property their balance sheets suddenly look healthier.

    I'm in arrears on my property portfolio to a commensurate amount a defaulting tenant owes me on another of my properties. I have been charged unfair fees by mortgageicon Express that has affected my cash-flow. I owe circa £300 on one of these and I'm a maximum of two months in arrears on a couple of the others. Before I received the LPA instruction letter I sent post dated cheques to the mortgage company to virtually clear the balance. By instructing an LPA in this way it shows they are effectively using a loophole to steal the equity from the landlords to get themselves out of trouble. The mad part about this is a letter they sent me a week and a half ago says they are going to charge £1000 for the receiver. As per the letter I sent them a week and a half ago, and the conversations I had with them on the phone; If they had let me be for two months the arrears would have been cleared. By instructing LPA receivers so flippantly it also shows they don't care about unsettling tenants; One of the tenants was sent a copy of a letter to the letting agent panicking as the letter states; The receivership appointment does not affect the terms of your occupation but this letter must not be taken as acknowledgement that you have right to occupy. Such a right will need to be demonstrated by the production of a tenancy agreement.

    The CML (Council of Mortgage Lenders) advise Lenders;
    In buy to let arrears cases they are expected to act fairly towards their borrower and take the individual circumstances of each borrower into account. Lenders should ensure that their policies allow for flexibility in approach and that their choice of enforcement action for the particular loan is appropriate. Lenders should not adopt a “one size fits all” approach to buy to let loans. When Law of Property Act 1925 receivership is contemplated that you will consider carefully whether it is appropriate to appoint a receiver and that appointment of a receiver is not automatic following default!" You have processes in place to ensure that appointment is not automatic and is appropriate for the loan in question.

    They have not followed these guidelines. After reading your previous comments i've sent this letter;

    Account Numbers; xxxx
    xxxx
    Further to my conversation with you on the xx June and my letter dated xx June and the two cheques; one for £xxxx and one for £xxxx. I refer to a recent letter from xxxx dated xx June 2009 detailing that you are considering instructing a firm of LPA receivers to manage the above properties. I am a little confused to how this has happened as I have taken all reasonable steps to communicate and to pay of the arrears. I am being told by some members of staff that no LPA has been instructed and then I’m told they are!

    So to clarify the situation, my questions regarding this are as follows.

    1) Have LPA receivers been instructed?

    2) What exactly are “LPA receivers” and how will they operate? Am I to take it that you are in essence, proposing to re-possess the above properties, by using “LPA Receivers” to act on your behalf?

    3) I am unable to locate in your mortgage conditions the section that states that LPA receivers can be specifically appointed, therefore I should be grateful if you would forward a copy of the mortgage conditions, for the above accounts, as signed by me, outlining the section that relates to the specific appointment of “LPA receivers”.

    Kind regards,

    I've also rung them and emailed the letter, they've said they are keeping the LPA instructed and will reply to my letter.

    This whole situation has caused me embarrassment, is unsettling my tenants and as I am involved in property I feel it has had a detrimental effect on my professionalism locally.
    How should I proceed from here? Did you manage to chase for the whole shortfall; the 100k and/or did you manage to claim back fees?

    Follows
    0
    Following
    0

  11. #11
    Basic Account Holder nuke em Informative nuke em Informative nuke em's Avatar

    Follow Real_CAG on Twitter

    Cagger since
    Oct 2007
    I am in
    I live in a One Horse Town
    Posts
    567

    Default Re: LPA Receivers

    forget the CML guidelines, these are for PR consumption, not one lender takes any notice of any of them. They ( the guidelines) wont help you unless you go to court.

    also dont talk or comminicate with the receivers, they are not there to help you. Everytime you talk/write to them , they charge their fees to your mortgageicon account, just ignore them, if it all end up in a big court case, it will bode well for you that you did not have any contact with your lenders appointed "receivers"

    Remenber the orig purpose of tehLPA act was for commerical properties in thtrue sense of the word, not BTL on resi properties , but for factories, shops etc.

    the lenders are using it to steal equity from resi mortgageicon holders, aided and abbeted by the LPA receivers.

    by the way i meant SARicon ( Subject access requesticon) not a CCA Requesticon,
    i am hoping to find much colusion between my lenders and their appointed LPA receivers, then i will take them both to court for damages. --------------

    OK, re YOUR LETTER BELOW, i modified it
    dont be that nice to these monkeys, they are trying to steal your properties
    ------

    1) Have LPA receivers been instructed and if so why, please show me exactly in the mortgage document where it says you can circumvent the court and appoint LPa receivers?

    2) Am I to take it therefore that you are re-possessing the the above properties, by using “LPA Receivers” to act on your instructions, even though you will claim that they are "my" receivers?

    3) As I am unable to locate in your mortgage conditions the section that states that LPA receivers can be specifically appointed, please forward a copy of the mortgage conditions, for the above accounts, as signed by me, outlining the section that relates to the specific appointment of “LPA receivers”. Failure to do so will leave me with no option but to get posession of my properties via a court order.

    Kind regards,

    ....Please don't bother my master 'cos my sister & I might bite you...

    I DO NOT offer legal advice
    -
    "I just say what I say because everyone is entitled to my opinion!"
    Follows
    0
    Following
    0

  12. #12
    Basic Account Holder pigland Novitiate pigland's Avatar

    Follow Real_CAG on Twitter

    Cagger since
    Dec 2008
    Posts
    210

    Default Re: LPA Receivers

    Hi Nuke em,

    I'd already sent them my letter before your reply. I believe mortgageicon express instructed the LPA receivers incorrectly, I did speak to one of the LPA receivers and told them I believe they had been instructed incorrectly. It didn't make any difference! There doesn't seem to be much legal help on LPA receivers. If I carry out an SARicon I assume I have to send them £10?

    They have also sent me a booklet titled 'conditions 2007' `Should these have a signatureicon on them?

    It would be interesting to see how many other people are having LPA receivers instructed for being such a small amount in arrears. Please let me know if you get any more info. Thank you!

    Follows
    0
    Following
    0

  13. #13
    Basic Account Holder nuke em Informative nuke em Informative nuke em's Avatar

    Follow Real_CAG on Twitter

    Cagger since
    Oct 2007
    I am in
    I live in a One Horse Town
    Posts
    567

    Default Re: LPA Receivers

    Your mortgageicon document ( that was signed) must include the clause that they have the right to appoint the LPA receivers, send them a letter asking them to show in the ACTUAL mortgageicon document you signed the ACTUAL section where it states they have the right so to do. if it is not in there they dont have the right to appoint LPA receivers. if it is they do

    is this mortgage you are referring to a BTL one or a residential mortgage ?

    Be aware that the appointment of LPA receivers is to circumvent the court process, ( you might for example question the validity of the mortgage note, or you pettiton to be able to sell the house yourself for example and delay the process of repossession which they dont want/like ) they do this not because they are worried about the court process, but because it is quicker for them to shaft you and grab the property in question. Remember they claim that the receivers that are appointed are acting on your behalf....which of course they are not!

    ....Please don't bother my master 'cos my sister & I might bite you...

    I DO NOT offer legal advice
    -
    "I just say what I say because everyone is entitled to my opinion!"
    Follows
    0
    Following
    0

  14. #14
    Basic Account Holder pigland Novitiate pigland's Avatar

    Follow Real_CAG on Twitter

    Cagger since
    Dec 2008
    Posts
    210

    Default Re: LPA Receivers

    Hi Nuke Em,

    Cheers for the reply, it's buy-to-let. How do I petition to sell the property myself?

    Also a tenant has left one of the properties and the local letting agent has prospective tenants waiting. The LPA has no one lined up, so in my view they're compromising my opinion as there's no rental income to pay the £280 arrears..Any views?

    Follows
    0
    Following
    0

  15. #15
    Basic Account Holder nuke em Informative nuke em Informative nuke em's Avatar

    Follow Real_CAG on Twitter

    Cagger since
    Oct 2007
    I am in
    I live in a One Horse Town
    Posts
    567

    Default Re: LPA Receivers

    the LPA wont find a tenant, he will just grab it, do his stuff ( of which your mortgageicon account will be charged) and look to sell it off quick

    if anyhow you can get the tenant in there, do so, even though eventually the lpa receiver will grab the rent money, they will have to respect the tenancy agreement

    ell-en may know this form

    ....Please don't bother my master 'cos my sister & I might bite you...

    I DO NOT offer legal advice
    -
    "I just say what I say because everyone is entitled to my opinion!"
    Follows
    0
    Following
    0

  16. #16
    Basic Account Holder mungos mum Novitiate mungos mum's Avatar

    Follow Real_CAG on Twitter

    Cagger since
    Feb 2009
    I am in
    south east England
    Posts
    127

    Default Re: LPA Receivers

    Hi pigland & nuke em

    We are having exactly the same problems with mortgageicon express and lpa receivers as you guys.
    We tried and tried to work with mortgageicon express, we instructed a solicitor (waste of time and money) to go to Bingley to talk to a Mr Ray Hugill, MX's head of credit and fraud (Hugill left MX at Christmas and is now conveniently a company director of Templeton LPA receivers, same company that was instructed by MX to 'manage' our properties)
    Lpa instructed (in one case for £120) last September,
    All our properties had tenants paying rent when lpa took over.
    Lpa have run everything down so we now only have about 20% of the properties let.
    Of the properties that are let and the rent is being paid to lpa, when we check our statements from MX we find that very, very little has been credited to our accounts. We have confronted MX numerous times about this and each time we are told they will investigate but in the meantime we should contact the lpa ourselves as they work for us, I don't think so! If they had been working for us we wouldn't be in this mess, my dog Mungo could have done a better job.

    Some friends of ours also have some buy to lets, they had a few problems with a couple of tenants and so accrued a small amount of arrears, lpa receivers were instructed and did their usual trick of frightening off tenants, not collecting rent etc, causing arrears to spiral out of control.
    Mortgage express then applied their 'all monies charge' across the whole of our friends portfolio and instructed lpa's to ''manage!'' the remaining properties.
    What made this a lot worse was the fact that on about 6 of the properties, our friends had managed to raise the money and had payed the morgages on these 6 in advance for the next 6 months. Morgage express will not repay the over payment nor release these properties back and again the lpa are frightening away the tenants, they are doing all they can to avoid collecting rent from tenants and are generally running the whole portfolio into the ground.

    MX and lpa have nearly won, both ourselves and our freinds are nearly at the point of giving up as we can see no way forward at the moment, but then 1 of us gets angry and refuses to let the ba*****ds beat us.

    Does anyone know of a way that we could fight collectively? maybe try to get other people who are in a similar situation to join in and fight as a large group.
    As we have all experienced with both MX and lpa, fighting these big companies ( or are we fighting the government or indeed as tax payers maybe we are fighting ourselves!) us as individuals don't seem to be getting anywhere.

    Any thoughts?

    Best wishes
    Mungos mum
    xxxxx


  17. #17
    Basic Account Holder nuke em Informative nuke em Informative nuke em's Avatar

    Follow Real_CAG on Twitter

    Cagger since
    Oct 2007
    I am in
    I live in a One Horse Town
    Posts
    567

    Default Re: LPA Receivers

    LPA receivers are really only used in commercial mortgageicon cases and Buy to Lets are considered commercial. They (LPA) are not there to help you but to get the property sold as soon as possible ( to their own contacts in some cases!!! ) But as much as they are a""holes they are not really the problem. The problem is with who instructs them.

    when the banks/Building Soc instructs an lpa the first thing that should be done is that a petition should be lodged asap in the court to get a court order to be able to sell one's own property. Thats what the time and effort needs to be put into, nothing else. No point arguing ( or even cooperating ) with an LPA as it is all a waste of time and will only incur you more "fees", charged to your mortgageicon account. No point arguing or pleading with the bank, again a waste of time as they have already made their position clear by appointing an lpa in the first place.

    No, all your effort has to go into regaining CONTROL over your property and for that a court order to that effect is the silver bullet.
    ( see Bona's Post, 2nd one down, in this thread for what to do and how)

    So this can't be done collectively as these are all commercial situations, since each case (property) would need to be pettitioned for !

    The other thing that you might want to research is the validity of the mortgage note itself, comming from the law of Contracts point of view...because if it was to transpire that all is not what it seems then under the Laws of Contract that mortgage might not be a valid lawful document!!!!! just imagine!!!

    ....Please don't bother my master 'cos my sister & I might bite you...

    I DO NOT offer legal advice
    -
    "I just say what I say because everyone is entitled to my opinion!"
    Follows
    0
    Following
    0

  18. #18
    Basic Account Holder rosco97 Novitiate

    Follow Real_CAG on Twitter

    Cagger since
    Jun 2009
    Posts
    2

    Default Re: LPA Receivers

    what happens if you pay the arrears? I'm in a similar position


  19. #19
    Basic Account Holder pigland Novitiate pigland's Avatar

    Follow Real_CAG on Twitter

    Cagger since
    Dec 2008
    Posts
    210

    Default Re: LPA Receivers

    Mungos mum, Nuke em and all.. without prejudiceicon

    Ref Mungos Mum; That's unbelievable. One of my tenants has just been frightened off by the LPA receiver.. That was I believe Walker Singleton. Anybody know anything about them?

    And yep the others are Templetons.

    Nuke Em/Bona etc. How do i go about petitioning a circuit judge do I go down to the county courticon and fill out a form? If so which one?

    The validity of the mortgageicon note itself, coming from the law of Contracts point of view... Nuke em... Can you tell me more, this looks interesting!

    Also...Have a look at this letter I've just sent out to mortgageicon Express and others.

    23 July 09 without prejudiceicon

    Hi Gemma, (Mortgage Express)

    Further to our telephone conversation today.

    You may find this excerpt from HBF investments website interesting:

    'The business world of LPA Receivers and their repossession of investment properties is booming thanks to the credit crunch! Please see LPA Receivers – Back with a Vengeance! Source: DWF LLP

    This is a red hot topic currently and is one which provides both massive opportunities for bargain hunters with the right LPA contacts but also serious risks to property investors who are struggling with their mortgage payments!

    Many property investors are having their investment property portfolios effectively repossessed immediately even if they miss just one mortgage payment. Simply 10,000’s of Buy to Let properties will be repossessed during the credit crunch by LPA Receivers in this way!

    Until recently, lenders would apply to the courts for possession of properties but this process can take months. Lenders short cut this process instantly by utilising the Land and Property Act 1925 to appoint LPA Receivers to effectively repossess a property or property portfolio. By instructing the LPA Receiver, the lender effectively redirects & collects rents and is able sell a property almost at will and at any price they want to accept and as quickly as possible.

    There are many investors who have been caught in this trap and they appear to have no recourse to challenge the LPA Receivers actions: please see forums: Consumer Action Group and Money Saving Expert. It appears that if landlords get into short term trouble they can lose all their equity and cash flow from their rents and there is little if anything they can do about it.

    On the flip side, LPA Receivers need to find buyers for all these properties and this presents a massive opportunity for property investors with the right contacts.

    HBF Investments is a company working with LPA Receivers to source properties and trade them with property investors. Most of the properties come tenanted and at 25% discounts.'

    Gemma............I hope you understand why I am concerned by this article?

    We are all in a credit crunch. The whole buy-to-let market is affected by many threats; Landlords and tenants are losing their jobs, and tenants in many cases are temporarily struggling to pay there rent. New legislation is being introduced that is not being thought through properly; A situation that has personally affected me is the new 'Tenancy deposit scheme'. Even though this scheme has many merits and protects tenants from unscrupulous landlords it is flawed and if a tenant doesn't pay the rent or leaves a property in disrepair it can take months for a deposit to be paid back to a landlord. This as you are aware has affected me and has cost me thousands of pounds. I have no doubt this is a situation that also is affecting many other landlords.

    I am an experienced landlord and I have a property portfolio that for many years has not had a problem. The credit crunch has affected myself and 10's of thousands of other landlords. interesticon rates have been reduced in order to ease the burden on businesses, this reduction takes time to feed through and therefore flexibility on behalf of the lender should be paramount.

    It is apparent that Mortgage Express are instructing LPA receivers 'at a drop of a hat'. Surely if these properties are repossessed this will flood the property market with property and destabilise it further? In turn this will have a downward effect on property prices. Flexibility is the key to the future stability of the buy-to-let market. Surely as a lender if the market drops further the lender becomes more at risk?

    I have been made aware that there are thousands of other people that are having LPA receivers instructed. Apart from earning a fee of £1000.00 per property for instructing an LPA receiver (not including your other bolt on fees), I cannot see why a lender would wish to follow such action? I also wonder if Mortgage Express may see an advantage in forcing repossessions to get some money bank for their own balance sheets?

    Flat 4, xxxx Road
    Is in arrears of £369.84. This property commands a rental income of circa £400pcm. You have appointed an LPA receiver. I have recently refurbished this property in order to give a tenant a good home, it is in a good area close to the hospital and is extremely rentable particularly to hospital staff. I being an experienced landlord have prospective tenants awaiting to go into this property. According to the LPA receiver you have instructed they have control and I do not. I believe as the LPA receiver is not based in xxxxx this is why it is not being rented. They are probably also very busy with other properties. It has been brought to my attention that one of the ways LPA receivers make their money is from repossessing properties. If an LPA receiver were not instructed I would have tenants in now and the arrears would be cleared. By leaving the property untenanted this is a sure fire way of forcing me into arrears and creating repossession. Is this part of the plan? Why is this property not being rented? Are you or the LPA receiver trying to force repossession?

    I do not feel it is reasonable to charge your fees of £1000.00 for an LPA receiver. How can you can justify a fee almost three times the size of the arrears, I do not intend to pay your fees or that of an LPA receiver without justification.

    16 xxx Court
    This is in arrears of £332.02
    The tenant paid the rent last week of £450. Where is it? And why is it in arrears? What has the LPA receiver done with the money?

    17 xxxxxx
    Arrears £1230.03 The LPA receiver I believe has the rent of £525.00 so is this in arrears of just over a month? Where's the money?

    xxx Road
    Arrears £250.00. The LPA receiver I believe has the rent amounting to £400.00. That's £150.00 more than the arrears!

    If the LPA receiver hadn't been instructed I'd have sent you the rent last week. If the LPA receiver hadn't taken my rent this month this would now be in credit and not in arrears. You were aware of my situation and my intention to pay before you instructed an LPA receiver. I do not feel it is reasonable of you to charge your fees of £1000.00 for an LPA receiver. How can you justify a fee 4 times the size of the arrears? I do not intend to pay your fees or that of an LPA receiver without justification.
    Through the actions described above you are compromising my position and costing me money. I have tried to work with you on my accounts I've spent money on repairs to keep the properties in good rentable condition and as you know had a tenant that did not pay me, hence my position. The reduction in interest rates is now feeding through and will assist in reducing the arrears and allow me to continue with my business as a landlord.

    The action you are taking in instructing LPA receivers is neither helpful nor I believe correct. In order for me to understand please explain;

    1; Why you think your action is valid?

    2; Are you intending to use the LPA receiver to repossess my properties so you can then charge additional fees against the remaining equity?

    3; Is the charge of £1000.00 for instructing an LPA receiver lucrative for Mortgage Express?

    4; Do LPA receivers charge any additional costs to the Mortgagor or Mortgagee?

    5; Do Mortgage Express receive a fee from LPA receivers either directly or indirectly?

    6; How many LPA receivers have Mortgage Express instructed across the country at £1000 per property?

    7; As I feel my position has been compromised, what action is now being taken by Mortgage Express to remedy this situation?

    8; As you are now government owned has this been okayed by the government and will I as a taxpayer receive any of this money back and when?

    Please reply to my email within 7 days.

    Kind regards,



    CC; Alistair Darling
    David Cameron
    Richard Banks (Mortgage Express)
    Daily Telegraph
    Caroline Flint (Housing Minister)

    Follows
    0
    Following
    0

  20. #20
    Basic Account Holder mungos mum Novitiate mungos mum's Avatar

    Follow Real_CAG on Twitter

    Cagger since
    Feb 2009
    I am in
    south east England
    Posts
    127

    Default Re: LPA Receivers

    Hi pigland
    As you know we have had dealings with Templetons LPA, the other troop of monkeys that MX instructed were Jorden Salata.
    Templetons have at least replied to some of my requests for information but Jorden Salata (who seem to be as slippery as slug goo) refuse to aknowledge any form of communication.
    Sorry but we have no knowledge regarding Walker Singleton but have read awful things about them on this forum.

    We are also having huge problems regarding tenancy deposit scheme, when tenants are vacating properties they are, quite correctly contacting us for the return of their deposit. Trouble is now properties are being ''managed'' by LPA we have no idea of any rental arrears nor do we have any idea of the condition in which they left the property. When we managed our own properties we always did an itemised 'check in and check out' with the tenants. We really do not know what to do about this, some of our tenants had been with us for years, and those that we knew were always honest and 'up front' with us we have managed to find the money to return their deposits, but we can't do this across the board with all the tenants that have now left as we just do not know if there are arrears nor the state of property. So far we have just refered people back to LPA.

    I will be interested to know how MX respond to your e-mail.
    We sent them a letter that was along the same lines as yours about 4 months ago, we received a reply about a month later that basically denied any wrong doing by MX and telling us that LPA work for us and we are to deal with LPA direct. I still can't get my head round that logic!

    We also requested copies of all our files under freedom of information act and sent £10 cheque for each of us. First letter we had back from MX said that we had to send £10 for each account and we were not entitled to all information held on us just because we want it, we were not entitled to info if it was manually filed, nor were we entitled telephone recordings etc etc and they quoted an act which I think was Durant v's FSA stating that according to this act they did not have to supply all the information we wanted. We contacted information commisioner who basically told us this was a lie and Durant v's FSA was an old ruling that is no longer applicable plus we only had to send cheque for £10 per person, not per account. We again wrote to MX explaining this and lo and behold on the 40th day (last day they had legally to supply this info) our poor post man struggled down our path with numerous parcels from MX.
    This was followed by letter from MX group solicitor still saying that under act of Durant v's FSA we are not entitled to all of the information. We again contacted information commisioner who told us this act no longer applies and we are entitled to ALL our information. We've again written explaining this to their solicitor (you'd think MX would employ a solicitor who had a working knowledge of law!) and are awaiting a reply.
    We are still wading through all the files they sent but we know there is stuff missing. We will decide later about our next step.

    I too have written and e-mailed Alistair Darling, I did this about 3 months ago, twice, had no response at all and I've sent same letter to acting PM, Lord Mandy but again had no response. Bless 'em they are probably far too busy taking back handers from those nice bankers to be bothered by small fry such as ourselves.

    Sorry for the thinly veiled sarcasm.

    Please do let us know how you get on, it's reassuring to know that other people are also fighting in a similar way.
    Thanks to this forum at least we now know that we are not alone.

    Good luck

    Mungos mum
    xxx



Viewing CAG on a small screen? Switch to the mobile version of the site

Reclaim the Right Ltd. - reg.05783665 in the UK reg. office:- 923 Finchley Road London NW11 7PE