Kent Reliance Building Society & LPA Receivers are increasing my mortgage debt

[keates]

Also concerning LPA receivers selling properties, it has come to light that some lenders let the receivers go through the process of 'selling' the properties up to the point of actually sigining the transfer documents for the Land Registry, then the lender steps in and signs the documents to complete the sale. If this happens, the receiver then becomes the agent of the bank and not your agent and that opens up a whole can of worms.

 

You can check to see if this has happened to you by filling out a form OC2 which is available on the Land Registry website http://www.landregistry.gov.uk/professional/forms - there is a small charge but it might be money well spent. You need to ask for a copy of the TR1 transfer document.

Edited March 9, 2013 by keates
More info added

[Bah Humbug!]

Hi All,

Has anyone actually challenged in court the Lenders Deed of Appointment of Receiver ?

With specific regards to the incorrect signing of the Deed in accordance with the Companies Act 2006 ?

Or indeed any other reason that made it invalid ?

If so what was the outcome, any info would be most appreciated.

Thanks

[jambeacon]

Hi All

 

sad to say that i have joined the ranks of "formal demand" to repay my BTL loans with NRAM......i have never default on payments, but my LTV has increased to 108% LTV, instead of the agreed 85%. They say they are having it as one demand, despite the loan agreements being 5 individual ones, and two of these are at 51% LTV.

 

I have replied to the demand, both emails, and letters, to the relationship manager, and also complaints ...but its gone cold...........is the storm about to hit me.............is there anyway i can ring fence things..........

 

the snow ball effect will be dire....as i have two other loans with another lender, ( with personal guarantees) and they are fine, and got some equity......i have ask if they would take some NRAM - but want 30% deposits, off the book valuations.......if i had that money, i would have reduced the 108%LTV with it instead....all i can keep doing is paying the amounts agreed, with a few over payments each yr......

 

any guidance on how to safe guard things...

 

stressed, having a go at the kids and wife......which they don't deserve........

 

everything we have worked for, and got feels like its slipping

 

Help and guidance - anything appreciated, but please no "Ha ha ha told you so stuff"

[Newborn]

Many people do not realise that the LPA Receiver (or in circumstances where they are appointed under the mortgage deed - as opposed to the Law of property Act 1925 - when they are called Fixed Charge Receivers) are appointed as agents of the mortgagor (the borrower) - it says so in the mortgage deed. But they are appointed by the mortgagee (the lender) sick isn't it? This means that the borrower is responsible for all errors made by the LPA receiver and the lender has no duty to vet the receiver! If you look at an LPA receiver's letter it always says somewhere that they are always agents of the mortgagor and it will also say this on the agreement between lender and receiver.

 

But the LPA receiver has to be appointed properly or the lender and/or receiver could be in a world of hurt.

 

LPA receivers can be appointed as:

 

Agent to the Mortgagor (what they always tell you)

Attorney to the mortgagor (goes hand in hand with the above as they have to sometimes sign stuff in the place of the borrower)

Agent to the mortgagee (lender will avoid this at all costs - especially BTL cases)

Principal agent in their own right - LPA receiver will not do this except in extreme circumstances

 

But where the mortgagor is or they become aware that the mortgagor is bankrupt they can never be appointed as mortgagor's agent (American Express International Banking Corporation v Hurley 1985). But they tend to ignore this and rely on ignorance as bankrupt mortgagors cannot afford legal advice. But once they know they are likely to be 'disinstructed'. And this is because a mis-appointed LPA receiver is technically a trespasser.

 

If you have been made bankrupt and there is an LPA receiver involved you might want to tell them. This is especially the case if you are a tenant and your landlord has LPA receivers appointed and you know the landlord is bankrupt, it gives you breathing space if you challenge the appointment (you should get copies of the documentation to check).

 

The powers of an LPA receiver are dictated by the LPA 1925, the powers of a fixed charge receiver by the mortgage deed. A receiver so appointed cannot act outside those limitations or they are trespassers.

[Property999]

Hi all.

 

I would really appreciate it if anyone has got a copy of the 1997 Terms and Conditions for Mortgage Express.

 

Do they really have power of sale???

 

Thanks in advance.

[Meerkat One]

I don't know if this is of any interest but I challenged MX over who was legally authorised to instruct LPA Receiver as I discovered the person who signed mine was an Admin assistant and did not have POA. I got my properties back.

[Property999]

I don't know if this is of any interest but I challenged MX over who was legally authorised to instruct LPA Receiver as I discovered the person who signed mine was an Admin assistant and did not have POA. I got my properties back.

 

Hi,

 

Thanks for replying. How do you know who has POA (power of attorney). According to my paperwork the person instructing the receiver was a commercial property manager and works for UKAR, not MX.

 

I really appreciate any advice.

 

Thanks.

[Against the LPA Receiver]

Hi, Can anyone explain who can sign a Deed of Appointment. Many of ours have been signed by an account manager at the mortgage company. How can this be challenged. Thanks

 

Against the LPA Receiver

[keates]

My understanding is that under the Companies Act 2006 it has to be signed by two directors or one director plus a witness. I believe it can also be signed by a person holding power of attorney. Which bank are you with? If you don't want to give that information, I will send you a PM. We are campaigning against banks appointing LPA receivers and my MP raised it in Parliament 10 days ago and we were on our local news programme last week. Things are beginning to happen and we need more people to join us please. The law needs changing before more lives are ruined.

[keates]

PS It depends if the company is registered at Companies House if the Companies Act applies.

[Newborn]

I don't know whether you've seen this but it does give a break down of the legal pitfalls involved from the viewpoint of the lender and LPA receiver:

 

http://www.jgrweb.com/downloads/buy_to_let_property_law.pdf

[keates]

I would be pleased to hear from anyone who has had Law of Property Act Receivers appointed over their buy to let properties by Kent Reliance Building Society. This happened to me four years ago and they have disposed of all my properties and left me with a £380,000+ debt. I was told by an employee of Kent Reliance that they had done the same to 'lots of other people' but apparently I was the only one who put up a fight which is still going on and I want to trace these other victims. Please contact me

[dx100uk]

various threads on the same issue merged here

 

please keep to one thread

 

dx

[keates]

I know there are various threads on the same issue but I need to make contact in particular to customers of Kent Reliance Building Society who have been victims of LPA Receivers

[dx100uk]

the new thread alert is still active

so anyone that reads and follows that link

will be directed to this thread

and be able to read the background.

 

dx

[keates]

OK thanks but things have moved on. I really need to contact others who have been affected by Kent Reliance appointing LPA Receivers

[dogdays]

Keates Have tried to PM you, but am unable to I have been a victim of LPA receivers, which have done nearly all of the above unlawful things

[keates]

I have also tried to PM you but apparently you cannot receive PM's. Would like to hear from you so can you check your settings please?

[dx100uk]

please keep things in the open forum.

 

pm's help no-one bar yourselves

 

dx

[keates]

I am more than happy to keep things in the open and agree that this is the way to help others. CAG was my first contact with other victims of LPA receivership nearly four years ago and has been a great help. I have been on TV and had articles about whats happened to me:-) published on the internet and I am not scared of the snoopers on these forums, so if you can give me some idea of what has happened to you 'dogdays', I will share my experiences with you. Can you tell me which bank you are with? But if not it doesn't matter. Look forward to speaking to you through CAG

[keates]

I had eight properties put into LPA receivership four years ago when I was in dispute with the bank. The bank alleged I had £18,500 arrears but I did not agree. I stopped paying my mortgage not having a clue these people, laughingly called LPA receivers could be appointed. They kept hold of my properties for three years and gradually sold them off for below market value. What with the shortfall on the sales and the exorbitant costs and charges added by the receivers, I have been left with a £400,000 debt!

 

Also, I eventually obtained a Judgement in court stating that the receivers did not have the power of sale so they actually 'sold' my properties illegally.

 

LPA Receivers are totally unregulated and operate under the radar of ALL authority. I am still fighting to get the law changed along with others.

Edited July 31, 2014 by honeybee13

[Mr Thoma5]

how did you obtain that judgement?

[keates]

The power of sale for the LPA receivers is not automatic, it can only be conferred as an additional power by the bank and only then if the mortgage deed or a written document upon which the mortgage deed relies, contains an EXPRESSED term, that the power of sale can be conferred.

 

In my case, although the bank had added the power of sale as an extra power on the receivers letter of appointment, we were able to prove that the mortgage deed did not have this expressed term to allow them to do this.

[Gemma.]

The power of sale for the LPA receivers is not automatic, it can only be conferred as an additional power by the bank and only then if the mortgage deed or a written document upon which the mortgage deed relies, contains an EXPRESSED term, that the power of sale can be conferred.

 

In my case, although the bank had added the power of sale as an extra power on the receivers letter of appointment, we were able to prove that the mortgage deed did not have this expressed term to allow them to do this.

 

Hi Keates,

 

How did you manage to get round the standard terms and conditions and the charge conditions? Did they have the clause in or no?

[keates]

There has to be an expressed term in the mortgage deed ie, it has to say something similar to 'THE POWER OF SALE MAY BE CONFERRED ON THE LPA RECEIVER' - Under the Law of Property Act the lender has the power of sale without an express term in the mortgage deed but the LPA Receiver does not have this power without the express term in the mortgage deed being conferred on them. In my case, the bank conferred the power of sale in breech of the mortgage deed as it was not an expressed term and I obtained a judgement in my favour, preventing the receiver selling my houses but unfortunately, this was after they had illegally 'sold' five of them. I hope that makes sense!