Receiver's on a buy to let.

[fed up]

Hi,

I would really appreciate any help, advice or pointers to where I could find some please

I am a reluctant Landlord (in respect of taking on a buy to let, due to a bereavement and not being able to sell the property). I have had 2 Tenants, both didn't see why they needed to pay on a set date (would pay when they felt like it) neither did they see why they should pay the set amount of rent, (they both paid any amount that they wanted, always below requested amount).

This led to me being 2 months in arrears. I have finally managed (with your kind help a few weeks back) to remove the last Tenant, my house had been up for sale throughout her final 2 months of Tenancy (as set out in her Tenancy agreement, so that viewings could commence).

Not wishing to disturb or annoy either Tenant, both times, we asked agents to vet carefully any viewers, they were to be either cash buyers, first time buyers or indeed investment buyers (some would have kept the tenants in place). Both times, neither Tenant would permit anyone onto the premises, (even us to inspect the property at intervals during the tenancy).

Back in Feb/March/April, there were many potential buyers, chomping to view, now it has died out, so that leads us to now having it up for sale, sprinkle of viewings, drop in price and now a tsunami of viewers, with offers about to arrive.

Last Saturday received a letter, informing me that Receiver's were appointed on the Friday and not a whole lot more info. I rang on the Monday, to be told the locks were being changed (or should have already) that I am no longer permitted to have anything to do with the property and they will notify me what's what.

Agents were still in place, with viewings booked, so I gave all their details to the Receiver. They have made no contact to the agents at all, even to say you are no longer on the case. The Agents deal with other receiver's so they continued to market, as this is usual for them. Today, having notified the receiver of this, a second viewing was arranged and they were ready to put in their offer (just a grand under the asking price). They arrived to find the locks are changed.

(sorry this was so long) ... Are they allowed to do this without any possession hearing at court? Why are they allowed to bar any viewings and ignore any offers?

[Carryon Regardless]

I'm not qualified or experienced to be able to advise but would be very surprised that they would have the right of possession without a court order.

Is it possible that communication has been going to the deceased address ?

[Melboy]

There would have been a court order for possession. Nothing happens without one and if it has then the receiver's would be out of order to proceed as you have described.

Are you the executor of the deceased person's estate? Do you inherit the property by Deed?

[fed up]

Good morning,

Thanks for the replies.

I purchased the property, (long story, but nutshell version..) I have a relative, who has bullied their in-laws into signing off their paid off properties to them.

They attempted this with my Mother, terrified her in her home of nearly 40 years, to the extent, she moved in with us here fearing for her own safety. They would let themselves in at 11pm, when she'd gone to bed at 7pm, wake her suddenly and push paperwork in her face, demanding signings.

Mum knew they were a problem years before and had got a POA for us to care for her, so they couldn't do anything horrible, should she become frailer at any time.

We went to her Solicitor's and they suggested (as there was a lifetime mortgage on the property already) that as it was now empty, I should purchase it on a buy to let mortgage, that way it was legally mine, so "they" couldn't try to take it again. It would give an income and all would be easier to manage, as I could deal with anything needed on the property.

However, after purchase, the local Social Services stepped in, denied us the right to rent it out, so we had two mortgages to cover (doh ) and explained that should Mum become in need of residential care, they would take back the house, sell it and use the funds to cover this cost. I was shocked, but they explained it's seen as "disposing of assets" - which given our situation above was not our intention whatsoever.

This used all our savings and we went without basic things as a family to pay for this, till sadly she passed away 3 years later, then it was let.

[fed up]

Oh a ps.

I also phoned HM Land Registry and asked if there were any applications pending or added, but an incredibly lovely lady explained it all fully and there is nothing showing towards the title, except the usual.

[Carryon Regardless]

I'm sorry but this web is too complicated for me.

It seems, to me, that you need to return to the solicitor to get this straightened out. More money spent I know but that might be offset by reducing the professional charges of the receiver if they are in the wrong.

[LLAW96]

oh dear, the appointment of a receiver is an extremely draconian act and usually means that the lender has reached the end of the line with you. I would assume there is a history between you and your lender and that you have a buy to let product. The starting point is your mortgage deed if there is a power to appoint a receiver then you are stuck with it. The law behind it is contained in s.109 Law Property Act 1925. The receiver will initially accept rents and use the same with a view to discharging the mortgage debt and or arrange a disposal of the property. They will at some point contact you to see if you can arrange to clear the debt and to inform you what they intend to do. If you do not have any equity in the property then are you flogging a dead horse? Remember a mortgage debt is under a contract of speciality and as such you can be chased for upp to 12 years for any shortfall.

[LLAW96]

and believe it or not there is no need for possession proceedings, they can just step in and take control.

[fed up]

Thanks for your help again.

The history with the mortgage company is that they won't reach any other conversation than "pay the full monthly amount". They won't enter into any discussion about paying a lesser amount or any other workable option.

They did not forewarn me about receivers, I simply received a letter on Sat, telling me they were appointed on the Friday, I spent two sleepless nights, before ringing them at 9am on monday.

I was then told they did not take calls till after 9.30am. Rang back 4 more times, till I finally got to talk to a human at mid-afternoon. The person was blunt, told me the locks "were" changed on friday (not true as the agents had viewings on sat and sun and that mon morning too). I asked her to explain how this all worked, what it all meant, she said she did not have to do that. (umm, yeah thanks then )

She told me I must always be available and give them my total support ??? I was left baffled, then I pointed out that my hoover, my lawn mower and a box of cleaning products were at the house, along with some brushes and a rake. She told me that I would have to make an appointment to collect those, I would be charged for the person's time to attend and it wouldn't be for a few days, maybe the following week.

In sheer desperation, I shot round (it's only 2 roads away) and tried my keys, they still worked, so I collected my items and left.

I've been told I cannot go to the property (which I understand) but I had been carrying out viewings too (if the agents had several at any one time, I'd take the buyers around to view). There were 5 potential buyers in the frame, all ready to put in offers, but wanting 2nd viewings. They have now blocked all the 2nd viewings over the weekend.

I've got 3 angry agents, several potential purchasers who are now running, not walking and all the jnr could say on friday was "oh well, that's a bit unfortunate, but if they like it, they'll hang on" umm, no I don't think they will actually. If it's this annoying trying to simply view, let along offer, why on earth would they? I sure would not.

I guess my frustration now, is that I understand receiver's are there to pay off the mortgage balance. They must also be seen to be getting the best price too. But now, they appear to be standing in the buyer's way and are now telling me they get to set what price would be acceptable for the sale. Guess that means monkey here will be stitched up to pay the balance, at the mo, there is around £20,000 equity (I've already dropped it £30k less than a similar one 4 doors up, only difference is the kitchen and bathroom).

I just wanted to know can they just remove all my agents and potential buyers like that? Are they allowed to dispossess the borrower (which other helpsites seem to say they cannot).

Again, thanks for all your time with this.

[LLAW96]

As I said you need to check your mortgage deed (1) to see if the power is there and (2) to check whether the trigger event leading to the appointment has actually arisen. The receiver is in fact your agent of a sort and you need to read s109 Law of Property Act 1925 to fully understand your position in all this.