my Leasehold/Freehold property and its issues.

[HP Mum]

I will check the paperwork.

I don't think its cca, rather the financial board that covers regular loans/ mortgages.

 

Lawyers letters have already begun

- but they stepped outside lawyers after my repayment was offered to make these 'suggestions' of selling asset cheap and wanting more profit.

 

I bet you are correct that a court won't allow repossession if they see repayment offered just not the amount of interest profit they want.

 

For arguments sake

- these aren't the real figures

- but the situation is something like this:

apx asset worth 750k,

loan 350k,

offer to repay 380k /

they refuse 380k and want 420k and intend to keep adding interest to the original amount

 

the figure they want now will increase so far out of my ability to repay and they force repossession.

 

Obviously this is wrong,

unethical, immoral etc and I was very silly to use such an outfit.

Their refusal to accept the repayment makes it clear they are money

-grabbing profiteers

- so do I just 'call their bluff' and transfer the money via a lawyer

- would this alter the dynamics of their demands and any future court case?

[Old Cogger]

missed who is the lender?

[HP Mum]

I haven't disclosed yet! It's not a regular bank listed on here. It's a small private financial house (read as loan shark!)

[AndyOrch]

Thread moved to the appropriate forum...please continue to post here to your thread.

 

 

Regards

 

Andy

[HP Mum]

it was a bridge loan

 

Is the FCA open to phone calls to discuss the situation?

 

I have been thinking about the "game" the bank is playing - and I think perhaps their conduct should be reported. Is that via a call initially or has to be a letter?

[HP Mum]

It's a new week and I need to address the situation above.

 

As the Lender rang me to tell me I only had limited options

- all of which centre on me giving them the property and not repaying the loan

- should I write a letter to the lender noting everything they said

- so there's a paper trail of their conduct?

 

I drafted one immediately after their call, as I didn't want to forget what was said.

Or should I just get the lawyer to write to say their refusal to accept my repayment is unacceptable and they wish the redemption papers to be sent forthwith????

 

I did receive a "pre-action protocol for possession claim .... in respect of residential property"

Just re-read it. There is a clause that if borrower makes a proposal for payment, and they dont agree to such a proposal they have to put it in writing within 10 biz days. They haven't - yet.

 

Another clause - says lender must consider not starting possession where the borrower can demonstrate he/she has an ability to pay an instalment (in this instance the whole loan + profit)

 

Plus there is a compliance clause - where both parties must be able to explain the actions they have taken to comply with the protocol.

 

Is any of this relevant to the fact that they are not accepting payment of the loan?

[AndyOrch]

I did receive a "pre-action protocol for possession claim .... in respect of residential property"

Just re-read it. There is a clause that if borrower makes a proposal for payment, and they dont agree to such a proposal they have to put it in writing within 10 biz days. They haven't - yet.

Another clause - says lender must consider not starting possession where the borrower can demonstrate he/she has an ability to pay an instalment (in this instance the whole loan + profit)

Plus there is a compliance clause - where both parties must be able to explain the actions they have taken to comply with the protocol.

 

Is any of this relevant to the fact that they are not accepting payment of the loan?

 

Yes

[HP Mum]

Thanks Andy

I spoke to FCA - they advised that the lender is regulated but it seems the loan may not be because it was 12 months or less and it falls outside of their remit.

 

Although the FCA did say that if I wish to make a written complaint they will make my issues widely known within the FCA.

However, that would not personally help me now.

They did say I should just handle it from a legal perspective and could contact the Financial Ombudsman.

Although again, I am not sure that will help me now.

 

It seems I must get them to put in writing why they are refusing my repayment offer.

Or should I get a lawyer to outline my complaints first?

A lawyer would probably tell more succinctly why they cant have the property!

[HP Mum]

The lender has refused the offer.

They want more money.

And are going to serve Notice for repossession.

 

How do I argue this now?

 

Can I just send the money to their bank account

- as this obviously removes the original loan and gives them a profit too

[HP Mum]

just a follow up on this

- lender says they have applied to court for repossession.

They wont accept my offer of repayment because the interest on the loan has increased

- and they want all the interest, not my reduced offer.

 

It wasnt a mortgage, it was a loan with interest rolled up - so not been making payments.

I had intended to clear the loan ages ago

- but couldn't until now, but only at the amount I have offered them.

 

They absolutely refuse to accept a repayment unless the full amount of interest and now costs etc are also paid.

Each day that passes they are continuing to add interest on the bulk.

 

They want to keep applying interest on a large sum of money

- even though my repayment would reduce the balance. There would only be unpaid interest left.

 

Our dispute would then be just on the unpaid interest, which

- if that was still to accrue interest charges

- would be based on the lower amount.

 

But they wont release the charge on the property until the whole ever increasing lot is paid.

And without any further negotiation / discussion on alternatives they have applied to court.

 

Do I just accept that this is now going to be a court case?

Or have they not followed the pre-action protocol in terms of alternative payment discussions and I can still do something pre

- going to court?

 

My situation/ health is delicate at the moment and I currently have no income.

I would not be able to afford a lawyer to go to court.

I really do not know what to do....

 

fwiw - the lender keeps repeating that the property is worth much more and thats why they want to hold out for more money from me

[dx100uk]

You need to name them

as numerous of these so called companies have been sanctioned today and recently.

 

https://www.consumeractiongroup.co.uk/forum/showthread.php?484963&p=5097959#post5097959

[Bazooka Boo]

fwiw - the lender keeps repeating that the property is worth much more and thats why they want to hold out for more money from me

 

You have this in writing yes??

 

It is clear that they never wanted you to repay the loan at all, they simply wanted your property, something which any DJ worth their salt would recognise immediately!

[HP Mum]

Just wanting bit of advice on FH/ Leasehold rights

 

A FH split to create 2 Leasehold adjoining houses (terrace)

FH remains under original ownership and 1 Leasehold house sold on 100y+ lease. .

Freeholder resides in the other Leasehold house.

 

The property was originally resided in as one house by Freeholder

Annual GR charged on the sold leasehold house.

No Management and no service charges.

 

Is it correct that the Right of First Refusal for the new owner to buy FH after 2y occupancy isn't applicable if the Freeholder resides in the other part of the FH property?

 

They are not the same size properties.

The Freeholder lives in the smaller house.

Not sure if this makes any difference?

Anyone know if new owner has right to buy FH or not? Just for their part?

 

If new leaseholder doesn't have right are they eligible to ask for share of FH?

Thanks

Edited March 4, 2018 by dx100uk
spacing

[ericsbrother]

If they have separate entrances and ground footprint it would be worth considering selling the freehold of that part to the lessee but as you have written it the freeholder of the leashold property appears to live in the lease property. Does this mean that the f/h property has been sold on now creating an ownership problem?

Explain things more clearly including the history then you will get an answer

[HP Mum]

The FH property was one house lived in as a whole; then divided into 2 units. One unit is for sale; the other unit will be lived in by the Freeholder. Just trying to analyse the rights of both: the resident Freeholder and the incoming purchaser of the Leasehold title of the other unit.

Both units have separate entrances. And both sit on their own footprint as the split was vertical; not horizontal.

The Freeholder prefers to retain the FH of both units for annual Ground Rent purposes (nominal £1000pa) and potential gain for descendant in the future when the Lease becomes shorter and needs to be extended.

[HP Mum]

Bazooka - I recorded a call in which the lender states 'I should just move out and let them take over the property'

[HP Mum]

The lender has served notice.

I have 3w until a hearing.

In the meantime I am trying to resolve with 1) a sale (may get an offer this week) 2) switching lenders 3) asking if I can part pay and have an extension on the outstanding

 

I know nothing about repo - so will read some other threads on this.

But, before I do that and inform myself better of the process - is there a way of postponing the hearing? Its just after Easter and I only just got the paperwork on Friday - giving me only 2..5w to resolve/ respond.

I havent even read the papers yet, have no idea how I respond. Plus - do I assume I may need a lawyer? What happens if i cant afford one? But the lender obviously can and will...

[HP Mum]

Since I started the thread, the source of the funds to help repay the loan, is potentially no longer there Scrabbling for alternatives, as just said above

[Bazooka Boo]

Have you got any legal advice yet?

[HP Mum]

No.

I was relying on the financial assistance to solve the issue before it went to court.

Only got papers on Friday; haven't read yet.

 

Am spending today/ tomorrow trying to resolve alternative financing options.

 

May have a sale option later this week which would totally solve the issue.

 

However, with Easter in 2.5w and court hearing just after I really need to step up and address the legal stuff too.

 

Its a lot of money and am worried about funding lawyer too.

[Bazooka Boo]

I really think you need to be seeking some form of legal assistance with this, as they will be able to view all the docs you have and other correspondence regarding your situation.

[ericsbrother]

then the person buying a lease get just that, no other rights. As for the GR, that is excessive so not likely to get a purchaser unless lease is 999 years.

 

Sounds like someone is being greedy and unless central London, unrealistic to boot as the selling price will reflect the other disadvantages so flat will likely fetch £40k less then a freehold

 

The big property developers have created problems with leases because of their greed and it is likely that there will be a change in the law that will make this lease untenable so no lender will touch it unless the purchaser has a massive deposit and if that were the case they would buy somewhere else with less onerous conditions

Edited March 12, 2018 by honeybee13
Paras

[HP Mum]

Thanks ericsbrother.

just double checked - GR is £500pa, doubling every 20y. Not quite as excessive as thought. No service or management charges.

ps Yes central London...

 

So just to clarify - the resident Freeholder doesnt have to sell the FH for the other unit - but could come to an arrangement with the new leaseholder for an agreed sum??

Guess a valuer would be able to advise on value to add FH onto a 100y+ lease. Perhaps bit more than 40k in London?

[ericsbrother]

why are you inventing scenarios that dont actually have any grounding in reality and then asking more questions based on a totally different situation. Give us some facts and you will get worthwhile advice.

 

So are you the leaseholder of the flat in question? How long is the lease? Do you intend to try and buy the freehold? If not what is this about?

Edited March 15, 2018 by Andyorch
Paras

[HP Mum]

ouch ericsbrother It is a real situation

The question was regarding one freehold building split into 2 lease units - if an in-coming purchaser of a long lease unit has the right to buy the FH of their unit, if the freeholder lives in the other unit. It seems from your kind answer above that the incoming leaseholder doesn't have the right to demand the FH. Thank you