Hi all.

My family have come into a predicament whereby the mortgage on a second property (buy-to-let) that they own has expired.

Just before the mortgage expired they had put the first property they own on the market, in hopes of selling it and repaying both mortgages.

Once the mortgage expired the mortgage lenders gave up to now an 8 month "grace-period" to sell the property and repay the debt.

The house was very close to being sold to a potential buyer that was about to exchange contracts with us but pulled out last second saying it wasn't a great investment for them anymore.

Leaving my family with a mortgage lender that has already waited 8 months for us to repay the full mortgage (Note that through-out this time we have been up to date with all monthly mortgage repayments).

The property is still on the market and we are trying our hardest to sell it.

The mortgage company are now telling my family that they could appoint an LPA receiver to repossess the house.

So my question is are they able to appoint an LPA Receiver for the property?

Even if we are trying our best to sell the first property they own,

whilst continuing to pay their monthly mortgage payments which in addition we have been paying an extra £600 on-top of our interest we already pay towards the mortgage, which they have been doing for the past 6 months.

I've tried searching the internet for the past week to find cases similar to ours for answers,

but i can only seem to come across information that confirms an LPA Receiver can be appointed only once the owner is in around 2 months worth of arrears on their monthly mortgage payments. (Which we aren't).

Thanks anyone in advance that can help!

so mortgae on second property interest only.

That means you have to pay them the capital at the end of the term.

This has nothing to do with the first property but they have given you a bit of grace to find the capital sum to pay the interest only mortgage off and you haven't.

You have a choice,

find another mortgage provider for the second property or risk it being sold from under your feet.

They arent interested in your first property as that is a separate matter,

the advice you have found is not relevant and in any case you are 8 months in arrears if you put it like that.

The extra payemtns are going to the wrong account to help you.

Hi, thanks for your reply.

I mentioned the first property as to give the best representation of our situation. The extra £600 a month is being paid to the 2nd mortgage currently.

From what I have read an LPA Receiver takes ownership in order to sell the house, though if we are already in the process of trying to find a Cash buyer in order to sell much quicker, wouldn't it be less hassle and cost less for them to just let us sell the property ourselves and repay as soon as we can, whilst continuing to pay the extra monthly payments?

I thought the second mortgage was an interest only mortgage.

Star again and explain exactly what is what, for exsample you live in property 1 and have a (type of ) mortgage that runs until 20XX in is/is not in arrears. Property 2 is a BTL and the interest only mortgage period has expired to the lender wants to recover their capital.

The mortgage company for property 2 is the same/different to property 1

We are paying extra payments for (which) property and the capital sum owed is being/not being reduced

be very clear about what is what and name the companies involved so again the confusion is reduced. You also talk about your family rather then being specific as to who the borrower(s) is.If the mortgages are in different names then say so