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some elements of the unfair commercial practices does seem to effect yourselves worth a look

http://ec.europa.eu/consumers/cons_int/safe_shop/fair_bus_pract/transpos_laws_uk1.pdf

 

 

STATUTORY INSTRUMENTS

2008 No. 1277

CONSUMER PROTECTION

The Consumer Protection from Unfair Trading Regulations 2008

Made - - - - 8th May 2008

Coming into force - - 26th May 2008

The Secretary of State, being a Minister designated(a) for the purposes of section 2(2) of the European Communities Act 1972(b) in relation to measures relating to consumer protection and to the control of advertising, makes the following Regulations in exercise of the powers conferred upon him by section 2(2) of that Act;

In accordance with paragraph 2(2) of Schedule 2 to that Act©, a draft of this instrument was laid before Parliament and approved by a resolution of each House of Parliament.

PART 1

GENERAL

Citation and commencement

1. These Regulations may be cited as the Consumer Protection from Unfair Trading Regulations 2008 and shall come into force on 26th May 2008.

Interpretation

2.—(1) In these Regulations—

“average consumer” shall be construed in accordance with paragraphs (2) to (6);

“business” includes a trade, craft or profession;

“code of conduct” means an agreement or set of rules (which is not imposed by legal or administrative requirements), which defines the behaviour of traders who undertake to be bound by it in relation to one or more commercial practices or business sectors;

“code owner” means a trader or a body responsible for—

(a) the formulation and revision of a code of conduct; or

(b) monitoring compliance with the code by those who have undertaken to be bound by it;

“commercial practice” means any act, omission, course of conduct, representation or commercial communication (including advertising and marketing) by a trader, which is directly connected with the promotion, sale or supply of a product to or from consumers,

(a) S.I. 1993/2661 and S.I. 1985/749.

(b) 1972 c.68; section 2(2) was amended by section 27(1)(a) of the Legislative and Regulatory Reform Act 2006 (c.51).

© Paragraph 2(2) of Schedule 2 was amended by section 27(2)(a) of the Legislative and Regulatory Reform Act 2006 (c.51).

whether occurring before, during or after a commercial transaction (if any) in relation to a product;

“consumer” means any individual who in relation to a commercial practice is acting for purposes which are outside his business;

“enforcement authority” means the OFT, every local weights and measures authority in Great Britain (within the meaning of section 69 of the Weights and Measures Act 1985(a)) and the Department of Enterprise, Trade and Investment in Northern Ireland;

“goods” includes ships, aircraft, animals, things attached to land and growing crops;

“invitation to purchase” means a commercial communication which indicates characteristics of the product and the price in a way appropriate to the means of that commercial communication and thereby enables the consumer to make a purchase;

“materially distort the economic behaviour” means in relation to an average consumer, appreciably to impair the average consumer’s ability to make an informed decision thereby causing him to take a transactional decision that he would not have taken otherwise;

“OFT” means the Office of Fair Trading;

“premises” includes any place and any stall, vehicle, ship or aircraft;

“product” means any goods or service and includes immovable property, rights and obligations;

“professional diligence” means the standard of special skill and care which a trader may reasonably be expected to exercise towards consumers which is commensurate with either—

(a) honest market practice in the trader’s field of activity, or

(b) the general principle of good faith in the trader’s field of activity;

“ship” includes any boat and any other description of vessel used in navigation;

“trader” means any person who in relation to a commercial practice is acting for purposes relating to his business, and anyone acting in the name of or on behalf of a trader;

“transactional decision” means any decision taken by a consumer, whether it is to act or to refrain from acting, concerning—

(a) whether, how and on what terms to purchase, make payment in whole or in part for, retain or dispose of a product; or

(b) whether, how and on what terms to exercise a contractual right in relation to a product.

(2) In determining the effect of a commercial practice on the average consumer where the practice reaches or is addressed to a consumer or consumers account shall be taken of the material characteristics of such an average consumer including his being reasonably well informed, reasonably observant and circumspect.

(3) Paragraphs (4) and (5) set out the circumstances in which a reference to the average consumer shall be read as in addition referring to the average member of a particular group of consumers.

(4) In determining the effect of a commercial practice on the average consumer where the practice is directed to a particular group of consumers, a reference to the average consumer shall be read as referring to the average member of that group.

(5) In determining the effect of a commercial practice on the average consumer—

(a) where a clearly identifiable group of consumers is particularly vulnerable to the practice or the underlying product because of their mental or physical infirmity, age or credulity in a way which the trader could reasonably be expected to foresee, and

(b) where the practice is likely to materially distort the economic behaviour only of that group,

(a) 1985 c.72; section 69 was amended by paragraph 75 of Schedule 16 to the Local Government (Wales) Act 1994 (c.19) and by paragraph 144 of Schedule 13 to the Local Government etc (Scotland) Act 1994 (c.39). 2

a reference to the average consumer shall be read as referring to the average member of that group.

(6) Paragraph (5) is without prejudice to the common and legitimate advertising practice of making exaggerated statements which are not meant to be taken literally.

PART 2

PROHIBITIONS

Prohibition of unfair commercial practices

3.—(1) Unfair commercial practices are prohibited.

(2) Paragraphs (3) and (4) set out the circumstances when a commercial practice is unfair.

(3) A commercial practice is unfair if—

(a) it contravenes the requirements of professional diligence; and

(b) it materially distorts or is likely to materially distort the economic behaviour of the average consumer with regard to the product.

(4) A commercial practice is unfair if—

(a) it is a misleading action under the provisions of regulation 5;

(b) it is a misleading omission under the provisions of regulation 6;

© it is aggressive under the provisions of regulation 7; or

(d) it is listed in Schedule 1.

Prohibition of the promotion of unfair commercial practices

4. The promotion of any unfair commercial practice by a code owner in a code of conduct is prohibited.

Misleading actions

5.—(1) A commercial practice is a misleading action if it satisfies the conditions in either paragraph (2) or paragraph (3).

(2) A commercial practice satisfies the conditions of this paragraph—

(a) if it contains false information and is therefore untruthful in relation to any of the matters in paragraph (4) or if it or its overall presentation in any way deceives or is likely to deceive the average consumer in relation to any of the matters in that paragraph, even if the information is factually correct; and

(b) it causes or is likely to cause the average consumer to take a transactional decision he would not have taken otherwise.

(3) A commercial practice satisfies the conditions of this paragraph if—

(a) it concerns any marketing of a product (including comparative advertising) which creates confusion with any products, trade marks, trade names or other distinguishing marks of a competitor; or

(b) it concerns any failure by a trader to comply with a commitment contained in a code of conduct which the trader has undertaken to comply with, if—

(i) the trader indicates in a commercial practice that he is bound by that code of conduct, and

(ii) the commitment is firm and capable of being verified and is not aspirational, 3

and it causes or is likely to cause the average consumer to take a transactional decision he would not have taken otherwise, taking account of its factual context and of all its features and circumstances.

(4) The matters referred to in paragraph (2)(a) are—

(a) the existence or nature of the product;

(b) the main characteristics of the product (as defined in paragraph 5);

© the extent of the trader’s commitments;

(d) the motives for the commercial practice;

(e) the nature of the sales process;

(f) any statement or symbol relating to direct or indirect sponsorship or approval of the trader or the product;

(g) the price or the manner in which the price is calculated;

(h) the existence of a specific price advantage;

(i) the need for a service, part, replacement or repair;

(j) the nature, attributes and rights of the trader (as defined in paragraph 6);

(k) the consumer’s rights or the risks he may face.

(5) In paragraph (4)(b), the “main characteristics of the product” include—

(a) availability of the product;

(b) benefits of the product;

© risks of the product;

(d) execution of the product;

(e) composition of the product;

(f) accessories of the product;

(g) after-sale customer assistance concerning the product;

(h) the handling of complaints about the product;

(i) the method and date of manufacture of the product;

(j) the method and date of provision of the product;

(k) delivery of the product;

(l) fitness for purpose of the product;

(m) usage of the product;

(n) quantity of the product;

(o) specification of the product;

(p) geographical or commercial origin of the product;

(q) results to be expected from use of the product; and

® results and material features of tests or checks carried out on the product.

(6) In paragraph (4)(j), the “nature, attributes and rights” as far as concern the trader include the trader’s—

(a) identity;

(b) assets;

© qualifications;

(d) status;

(e) approval;

(f) affiliations or connections;

(g) ownership of industrial, commercial or intellectual property rights; and

4

(h) awards and distinctions.

(7) In paragraph (4)(k) “consumer’s rights” include rights the consumer may have under Part 5A of the Sale of Goods Act 1979(a) or Part 1B of the Supply of Goods and Services Act 1982(b).

Misleading omissions

6.—(1) A commercial practice is a misleading omission if, in its factual context, taking account of the matters in paragraph (2)—

(a) the commercial practice omits material information,

(b) the commercial practice hides material information,

© the commercial practice provides material information in a manner which is unclear, unintelligible, ambiguous or untimely, or

(d) the commercial practice fails to identify its commercial intent, unless this is already apparent from the context,

and as a result it causes or is likely to cause the average consumer to take a transactional decision he would not have taken otherwise.

(2) The matters referred to in paragraph (1) are—

(a) all the features and circumstances of the commercial practice;

(b) the limitations of the medium used to communicate the commercial practice (including limitations of space or time); and

© where the medium used to communicate the commercial practice imposes limitations of space or time, any measures taken by the trader to make the information available to consumers by other means.

(3) In paragraph (1) “material information” means—

(a) the information which the average consumer needs, according to the context, to take an informed transactional decision; and

(b) any information requirement which applies in relation to a commercial communication as a result of a Community obligation.

(4) Where a commercial practice is an invitation to purchase, the following information will be material if not already apparent from the context in addition to any other information which is material information under paragraph (3)—

(a) the main characteristics of the product, to the extent appropriate to the medium by which the invitation to purchase is communicated and the product;

(b) the identity of the trader, such as his trading name, and the identity of any other trader on whose behalf the trader is acting;

© the geographical address of the trader and the geographical address of any other trader on whose behalf the trader is acting;

(d) either—

(i) the price, including any taxes; or

(ii) where the nature of the product is such that the price cannot reasonably be calculated in advance, the manner in which the price is calculated;

(e) where appropriate, either—

(i) all additional freight, delivery or postal charges; or

(ii) where such charges cannot reasonably be calculated in advance, the fact that such charges may be payable;

http://ec.europa.eu/consumers/cons_int/safe_shop/fair_bus_pract/transpos_laws_uk1.pdf

http://www.consumeractiongroup.co.uk/forum/welcome-consumer-forums/107001-how-do-i-dummies.html

 

 

 

 

Advice & opinions given by patrickq1 are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional

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Good point Ed, there is no possession order against me from the court, however they have informed me it is underway currently but as yet to be seen. Therefore I should be allowed to speak to Drydens about my properties are you saying?

 

You will know, of course, whether the mortgage lender has begun repossession proceedings against you, because if they have you will have received a Court claim for possession from the Court.

 

If a repossession order has NOT yet been granted against you personally, then whether you are currently entitled to enter the property will depend upon whether your mortgage deed contains any restrictions on your right to enter it. Your Solicitor will have explained any such restrictions to you when you took out the mortgage.

 

Regardless of whether you can lawfully enter the property, you are entitled to contact the mortgage lender's Solicitors if you need to do so. There is usually no point in contacting the lender in any other way.

 

 

It is a BTL mortgage from Mortgage Express, however the terms and condition have been written for a residential mortgage (Most of it anyway).

 

A buy-to-let [bTL] mortgage is ALWAYS a residential mortgage.

 

 

Yes they failed to collect rent for a long time, failed to manage the maintenence and tenants which then caused tenants to leave. They spent huge sums on trying on repair nonsencical issues but did not resolve anything. ...

 

At the beginning they said they will try to let until arrears are clear which they have never done so it is at a position whereas it is justifiable for MX with WS explanations of "the property is losing money therefore we need to sell" ie covers WS back to sell at a huge shortfall whereas the market rent is more than the mortgage payments therefore it does not make sense to sell in these times when the arrears can be cleared via the rents.

 

You need to consult a Solicitor immediately.

 

Where a mortgage lender takes possession of mortgaged premises in a case of mortgage arrears, under the provisions of the Law of Property Act 1925 the mortgage lender has certain legal obligations to the borrower. In this case it is possible that the mortgage lender is in breach of its statutory obligations, implied into the mortgage by the 1925 Act, if it has failed to take any - or any proper - steps to mitigate its loss by either selling or letting the premises.

 

If there is no possession order granted by a court against you personally, it is possible that the mortgage lender's power to manage the property, including its power to let the property to tenants, might not have arisen or might not have become exerciseable. Those types of powers arise if there are mortgage arrears, but usually don't become exerciseable by the mortgage lender except with a court order. It is possible, I suppose, that the mortgage contract between the lender and you might allow the exercise of such powers without a court order; but only a Solicitor could tell, after reading the mortgage deed.

 

If the powers have arisen, and have also become exerciseable, then the mortgage lender could nevertheless be liable to you for any breach of contract by it. The mortgage deed is a contract. The contract might contain an express - or implied - term that the mortgage lender must use a proper degree of care in exercising its management powers; the lender might even owe you a fiduciary duty of care. You could potentially sue it if it caused you loss in consequence of a breach of that duty.

 

 

Now with no tenants I got them tenanted again and repaired damages.

 

They have recently decided to mitigate further losses that they will now be selling and to remove the tenants.

 

You need to consult a Solicitor immediately.

 

If the mortgage lender's power of sale has not yet arisen, or has arisen but has not yet become exerciseable, the mortgage lender would usually not have the power to sell.

 

If its power of sale has arisen, and has become exerciseable, if the mortgage lender intends to sell the premises it has the contractual right to do so, even if you would prefer a different solution, unless, perhaps, its decision is so unreasonable that no lender would take it - a VERY high hurdle for you to surmount if you argue that. If you take advice from a Solicitor he can advise you as to whether it is worthwhile challenging the mortgage lender's decision: ask your Solicitor is the decision Wednesbury unreasonable?

 

It will not necessarily be unreasonable merely because a sale now will not pay off the whole of the mortgage debt, because a sale now will at least stop the continuing mortgage arrears from accruing every month - an important consideration.

 

Naturally, the mortgage lender's first step would be to obtain vacant possession, if it has a present intention to sell the premises, as it will inevitably need vacant possession in order to do so.

Edited by Ed999
  • Haha 1

Note

 

This is a self-help forum in which users share their experiences. Assistance is offered informally, without any assumption of liability. Use your own judgement; obtain advice from a qualified and insured professional if you have any doubts.

 

This posting gives general guidance only. It is not an authoritative statement of the law. Consult a Solicitor for specific advice before deciding on any course of action.

 

 

Further information:

 

Assured and Shorthold tenancies - A guide for tenants

 

Renting and Leasehold - Advice from Shelter

 

 

All posts are opinion only

 

 

If you've found my suggestions useful, please click on my star and add a comment

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Hi All,

 

Thanks for comments Ed but there has been no repossession proceedings against me at any time from MX.

 

From solicitors point of view MX do have the right to appoint LPA if in arrears. However they have a duty of care to ensure that it is handled in the best possible way.

 

The way it works is that because one property is not making a huge profit they want to sell. This is fair enough but this affects the whole portfolio because the shortfall would then be added onto the arrears of the portfolio which would then worsen the whole portfolio and ensure that the portfolio will not go back ito surplus therefore this would make it less justifiable to sell the portfolio altogether.

 

I am not sure whether this is legal hance am waiting for legal opinions to determine is this action allowed but as far as I know however wrong it seems it looks like it is legal for them to do this. But I want to fight this to highlight the fact this is not a fair practice and should be taken individually not affecting all other properties.

 

Thanks again

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For what it's worth, I believe that the 'unfairness' of this should be highlighted.

Bradford & Bingley (Mortgage Express) are now a nationalised company and so owned by the British tax payer, their practices of underselling and leaving the account holder with huge shortfalls means that the British public will have to swallow the millions of pounds that will be lost (most of us mortgage express customers will not have the spare cash to pay back these shortfall arrears) and so in short, the Government treasury is actively encouraging this huge loss of money to the tax payer.

When it's thought of in terms of what those lost millions of pounds could buy; hospitals, schools, police, nurseries etc etc, then surely it makes sense for the treasury to put a stop to this and allow landlords to run their portfolios effectively which will then produce profit for the tax payer with landlords paying tax and capital gains tax.

I cannot see why this is so difficult for the treasury and politicians to understand, my MP will not even answer my letters and e-mails, I suspect that she must also be part of this corruption and have her sticky fingers in the pie

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hi chilli this is the reason i put above in my post THE UNFAIR COMMERCIAL PRACTICES you need to look at it in detail what mx are doing is contrary to fair and just practices just the sort of thing the FSA should be taking action against both MX and WS via the FSA financial practices ,it is what the FSA Highlight UNFAIR COMMERCIAL PRACTICES .... this is what your case is all about

Patrickq1

http://www.consumeractiongroup.co.uk/forum/welcome-consumer-forums/107001-how-do-i-dummies.html

 

 

 

 

Advice & opinions given by patrickq1 are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional

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Hello all, sorry to butt in but new to seeking help and not sure how this site works...lets see what happens...To cut a long story short, LPA receivers were appointed about 8 months ago and have now sold the property but have not said for how much or the completion date. I have asked for this information but throughout have been treated like dirt by the LPA and no doubt will have to ask again....i am liable and have paid some of the council tax not paid by the dissapeared tenant, have no idea of the shortfall in the BTL loan, have known since they took over the property no attempt was made to let it even tho its in a letteable area, have had difficulties since just prior to the LPA being appointed as my fixed rate ended at the rates actually went UP...Chelsea trying to fleece tied in customers I suspect....anyway, my point is and help required, is there anything I can do to end this nightmare....I feel no one, lender or LPA, has tried to help me during a temporary difficulty and indeed have made matters worse leaving me, I suspect, with a big debt which I cannot pay...again sorry for butting in.

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hi murphy sorry to hear of probs, no your not buttin in, firstly have you sent sar notice to CHELSEA and also to the receivers.

patrickq1

http://www.consumeractiongroup.co.uk/forum/welcome-consumer-forums/107001-how-do-i-dummies.html

 

 

 

 

Advice & opinions given by patrickq1 are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional

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Thanks for reply Patrick...the answer is no, for 2 reasons, the 1st is that I believe matters have gone too far and the second is I lnew not of SAR until recently and even now do not fully understand its significance to my situation...

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Hi Patrick, Mungos mum I agree it is laughable...

 

Patrick, I do mention this unfair practice etc to solicitors but noone is interested... I will have to compile a document to FSA detailing all of the issues but it will take some time as a cataologue events have happened over the years...

 

Hi Murphy,

I am very sorry to hear of this event. Please do a SAR (If you do a search for it on here there will be a template you can use), then once all information is recieved you can check through details before you fire or answer any questions. Make sure you SAR the lender, LPA reciever and the solicitor.

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Thanks Chilli,.....my point really is what could I do with the information a SAR would provide? The facts I do not dispuite ie in arrears (2 months), repossed, sold etc....I'm assuming they had every right....my complaint is the unfairness and the process and the total disregard of basic consideration which would have enabled me to overcome the arrears problem. I am disallusioned andnot really up for a fight but dont want to end up bankrupted which will surely happen when they chase for the shortfall.....

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Hi Murphy

 

I am so sorry to learn that you have also been affected by these un-fair practices.

 

I agree that at the moment doing a SAR doesn't seem to be a step forward and it will take quite a while for the lender, receiver etc to comply (they hate receiving them) and they will do all they can to wriggle out of providing you with the information,

What it will mean in the long term is that eventually you should end up with copies of all communication you have had and they have had with each other, from these muppets. This should include transcripts of any 'phone calls you made to lender trying to reach an agreement regarding the arrears (this will prove that you have tried to work with them, you will need to keep going back and hassling them until you get what you need as they do NOT want you to have this info as it's not in their interests) the same goes for the receiver not being co-operative and not talking to you.

The information you receive may show the lender directing the receiver, this is illegal as the lender is then acting as mortgagee in possession, a case for a solicitor to address.

Hopefully by the time you get all the info you need some of us may by then have reached a point where our collective cases can be taken for a trial court case or the FSA will take up our cases and look at the unfair practices of these firms.

Finally, IF the lender does go for bankrupcy against you, then you will need all of the info to help you fight.

I'm sure that there are more reasons to have the info and other Caggers will add to the list.

 

MM

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hi chilli murph n MM.

it all points to unfair practices ,the FSA have made clear they will not tollerate UNFAIRNESS but it needs a complete and collective dossier of all accounts from when it first begun,so sar is the correct procedure asap.

they will try to wriggle out of the SAR BUT THEY MUST COMPLY ,hopefully every one has kept all phone records and any possible recorded calls , you have all tried mediation to no avail this refusal to mediate comes from above but when trying the route of mediation you also need send copies of the calls (recorded) to the FSA to show the unwillingness and the extreme legths both the mortgage co and receivers are going to to get rid of you, here is where the FSA should now stepp in and go for a class action on your behalf to put an end once and for all the the unfair practices , i have found WHICH CONSUMER MAG very useful with regards that you all write to them you would be surprised the amount of pressure they can put on the FSA so the FSA would be getting it from both ie yourselves ...

patrickq1

http://www.consumeractiongroup.co.uk/forum/welcome-consumer-forums/107001-how-do-i-dummies.html

 

 

 

 

Advice & opinions given by patrickq1 are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional

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Have done SAR's...stamped and ready to post tomorrow 1st thing.....how do I fight the "wriggling out" of providing the information which I suspect, from all your comments, will happen...Bt the way I have kept written records of all conversations but not recorded as I thought 1, you couldn't and 2, I dont have the gear...

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hi and welcome Fdeesa,

could you please explain ,in more detail , i understand you are in credit with the mortgage payments , who is the mortgage with is it mortgage express,

has your tennent left because of the repairs not being done or have they been advised to leave by WS ,

please give more details many thanks

patrickq1

http://www.consumeractiongroup.co.uk/forum/welcome-consumer-forums/107001-how-do-i-dummies.html

 

 

 

 

Advice & opinions given by patrickq1 are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional

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yes mortgage is with M.EX.

tenants left on their own free will

but have left it in a state.

I believe WS will try and force through a sale

or force a tenant on me I may not approve of!

 

secondary question

If I issue a lease can either WS or M.EX have it annulled if rent is paid to WS

Do I have to rent for market value?

or is it my choice on how much to charge?

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From solicitors point of view MX do have the right to appoint LPA if in arrears.

 

I don't know what you mean by 'from [a] solicitors point of view'. Either the mortgage contract gives a lender the right to appoint a receiver, or it does not.

 

 

However they have a duty of care to ensure that it is handled in the best possible way.

 

I disagree. The lender has a much more limited duty than that. It merely has an implied, or a statutory, duty to act reasonably. The case of Wednesbury suggests that a lender must act VERY unreasonably indeed before a court will be willing to admit that the lender has breached its duty. But you must consult a Solicitor: this area of the law is very complex.

 

 

The way it works is that because one property is not making a huge profit they want to sell. This is fair enough but this affects the whole portfolio because the shortfall would then be added onto the arrears of the portfolio which would then worsen the whole portfolio and ensure that the portfolio will not go back ito surplus therefore this would make it less justifiable to sell the portfolio altogether.

 

Don't expect the court to be interested in the least by such esoteric arguments. It will only consider your property, and will only want to know whether the mortgage is in arrears, and if so whether the arrears exceed 2 monthly payments.

 

You have shot yourself in the foot by letting to tenants, because you have thereby deprived yourself of the argument that the lender has unreasonably delayed in selling: for it usually CANNOT sell without vacant possession.

 

 

I am not sure whether this is legal hance am waiting for legal opinions to determine is this action allowed but as far as I know however wrong it seems it looks like it is legal for them to do this. But I want to fight this to highlight the fact this is not a fair practice and should be taken individually not affecting all other properties.

 

Have you instructed Solicitors?

 

I cannot believe that any responsible Solicitor would advise that course of action, when you are so clearly in the wrong. YOU are in breach of contract, in letting to tenants without the lender's permission. You therefore have no prospect of gaining the sympathy of the judge, in those circumstances; so asking him to exercise his discretion in your favour is a waste of breath.

Note

 

This is a self-help forum in which users share their experiences. Assistance is offered informally, without any assumption of liability. Use your own judgement; obtain advice from a qualified and insured professional if you have any doubts.

 

This posting gives general guidance only. It is not an authoritative statement of the law. Consult a Solicitor for specific advice before deciding on any course of action.

 

 

Further information:

 

Assured and Shorthold tenancies - A guide for tenants

 

Renting and Leasehold - Advice from Shelter

 

 

All posts are opinion only

 

 

If you've found my suggestions useful, please click on my star and add a comment

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my complaint is the unfairness and the process and the total disregard of basic consideration which would have enabled me to overcome the arrears problem.

 

The law allows a mortgage borrower a great deal of leeway.

 

Unlike the desperate situation of former times, you can no longer be evicted if the mortgage is in arrears. If you live in the United States, where the law remains essentially as it was in Colonial times, the lender can foreclose on you if the mortgage is in arrears - period. If you are one dollar in arrears, you are liable to foreclosure and eviction.

 

In England, under the 1925 Law of Property Act (the LPA) a borrower cannot be repossessed if the mortgage is merely in arrears. That only causes the lender's power of sale to arise. For the power to become exerciseable, an amount equal to at least two monthly payments must be outstanding.

 

Even then, the mortgage lender cannot evict you.

 

A lender who has a power of sale which has both arisen and has become exerciseable must then apply to the court for permission to sell.

 

Even then, the outcome is not a certainty. The court has a discretion to refuse that application, if the borrower appears to the court to be able to repay the arrears within a reasonable time. Where the mortgage is for a term of 25 years, the court is entitled to consider whether the borrower can repay the arrears by monthly installments over the full period of 25 years.

 

Only as a last resort will the court grant an application for repossession.

 

These are complicated matters, and the help of a Solicitor at the possession hearing is advisable.

 

Unfortunately, there has to be a point at which the interests of the Building Society or Bank are also taken into account. That point is, however, only reached where it is clear that the repayment proposals offered by the borrower are unrealistic.

Note

 

This is a self-help forum in which users share their experiences. Assistance is offered informally, without any assumption of liability. Use your own judgement; obtain advice from a qualified and insured professional if you have any doubts.

 

This posting gives general guidance only. It is not an authoritative statement of the law. Consult a Solicitor for specific advice before deciding on any course of action.

 

 

Further information:

 

Assured and Shorthold tenancies - A guide for tenants

 

Renting and Leasehold - Advice from Shelter

 

 

All posts are opinion only

 

 

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yes mortgage is with M.EX.

tenants left on their own free will

but have left it in a state.

I believe WS will try and force through a sale

or force a tenant on me I may not approve of!

 

secondary question

If I issue a lease can either WS or M.EX have it annulled if rent is paid to WS

Do I have to rent for market value?

or is it my choice on how much to charge?

 

A normal buy-to-let mortgage usually only requires the lender to approve in advance the tenants who you select. Any failure by you to obtain the lender's written approval, in advance of the letting, will put you in the wrong: it would be a breach of contract by you.

 

But if the property has been repossessed by the mortgage lender under a court order, or if the mortgage contract contains power for the lender alone to let the property (a point which your Solicitor will have explained to you when you took out the loan), then you cannot let it to tenants. If you do so in those circumstances, you will be putting yourself in the wrong: do not expect sympathetic treatment by the court if you choose to do that.

 

From the limited information which you have provided, I am unable to tell whether or not you have a right to let the property to tenants.

 

If you are unclear what your legal rights and duties under the mortgage are, consult a Solicitor for advice before taking any action.

 

If the Solicitor who acted for you when you took out the loan did not properly explain to you your rights and obligations under the mortgage contract, consider suing that Solicitor for negligence if you have suffered financial loss in consequence of his failure.

Edited by Ed999

Note

 

This is a self-help forum in which users share their experiences. Assistance is offered informally, without any assumption of liability. Use your own judgement; obtain advice from a qualified and insured professional if you have any doubts.

 

This posting gives general guidance only. It is not an authoritative statement of the law. Consult a Solicitor for specific advice before deciding on any course of action.

 

 

Further information:

 

Assured and Shorthold tenancies - A guide for tenants

 

Renting and Leasehold - Advice from Shelter

 

 

All posts are opinion only

 

 

If you've found my suggestions useful, please click on my star and add a comment

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Thanks for the info ed.

 

It makes for tough reading, but it's better to have an honest view of the situation and see it from all angles, so people can see what they're up against and decide the best way to proceed.

 

What's Best for You?

 

 

The Consumer Action Group is a free help site.

Should you be offered help that requires payment please report it to site team.

 

Alliance & Leicester Moneyclaim issued 20/1/07 £225.50 full settlement received 29 January 2007

Smile £1,075.50 + interest Email request for payment 24/5/06 received £1,000.50 14/7/06 + £20 30/7/06

Yorkshire Bank Moneyclaim issued 21/6/06 £4,489.39 full settlement received 26 January 2007

:p

 

Advice & opinions given by Caro are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

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In case I'm suspected of talking through my hat - or out of the back of my head - I will come clean and admit that, at one time, I was a volunteer adviser at my local Citizens Advice Bureau; and from time to time have appeared on a pro bono basis at repossession hearings.

 

I'm familiar with the procedures, and the pitfalls, of these hearings.

 

One can pick up a great deal of useful info by chatting to the Barristers who typically appear on behalf of the mortgage lender at these hearings, and from observing them in action. It quickly falls into a familiar pattern. And there is also some sharing of experiences among colleagues at the CAB who have done these hearings in other cases.

Note

 

This is a self-help forum in which users share their experiences. Assistance is offered informally, without any assumption of liability. Use your own judgement; obtain advice from a qualified and insured professional if you have any doubts.

 

This posting gives general guidance only. It is not an authoritative statement of the law. Consult a Solicitor for specific advice before deciding on any course of action.

 

 

Further information:

 

Assured and Shorthold tenancies - A guide for tenants

 

Renting and Leasehold - Advice from Shelter

 

 

All posts are opinion only

 

 

If you've found my suggestions useful, please click on my star and add a comment

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yes good advice is always welcome Ed

 

---Quote (Originally by chillinlong)---

The way it works is that because one property is not making a huge profit they want to sell. This is fair enough but this affects the whole portfolio because the shortfall would then be added onto the arrears of the portfolio which would then worsen the whole portfolio and ensure that the portfolio will not go back ito surplus therefore this would make it less justifiable to sell the portfolio altogether.

---End Quote---

Don't expect the court to be interested in the least by such esoteric arguments. It will only consider *your *property, and will only want to know whether the mortgage is in arrears, and if so whether the arrears exceed 2 monthly payments.

 

You have shot yourself in the foot by letting to tenants, because you have thereby deprived yourself of the argument that the lender has unreasonably delayed in selling: for it usually CANNOT sell without vacant possession

 

i do see your argument but also see the possibility of being able to go to court and ask for a judge to administer a stay in any future actions against all other properties and have the properties returned forthwith and to be put back into a position you would have been in before the Receiver was appointed , the failure to mediate your financial circumstances and come to a agreement that would be beneficial to both parties ,the receiver did his job on the one property and has now begun to disseminate the mortgagee's portfolio an create more problems with the mortgagee's properties , f which had no mortgage arrears but because the terms and conditions have not been laid before the mortgagees of what duties the receiver was lawfully employed to do , this results in an unfair contract or contracts since they are now linked which should not be the case

http://www.consumeractiongroup.co.uk/forum/welcome-consumer-forums/107001-how-do-i-dummies.html

 

 

 

 

Advice & opinions given by patrickq1 are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional

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