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migmash
Starting Member
United Kingdom
25 Posts |
 Posted - 25 July 2009 : 23:03:58
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| Good or bad income?! I receive £550 p/month from a property I bought and renovated about a year ago. It was done to sell on, but the Market did what it did, and it was not to be! I have a m/gage on the property with M/Express at £101,000, and have got valuations from local agents at £90 - £95,000. With the £550 added to my wifes income and credits, the monthly total incomings is £1,700 for 2 adults and 3 children. We both went B/R last week and the O.R. called Monday morning to say, as the house was purchased solely in my name, the O.R. will have the rent from now on, and when you come for your interview next week bring the latest rent in cash, and from now on the Tenant wil pay us.This invariably came as a shock to me and my wife, as I thought the rental income was a good thing to our household as it just covered our home m/gage, and the rental one. Apparently they have only recently started to do this, and I can't quite see the logic in it as the tenant says he won't pay them anyway. . . and eventually both will be repossessed, (as we paid our house from the rent)and for the O.R. to gain about £1,650 (which tenant won't pay anyway?!)our family, and tenants family, get kicked out! Where is the sense in that. Have offered to borrow from friends £2,000 and give the O.R. this instead, but no-go. Sorry to go on a bit, and I realise as a bankrupt you are meant to suffer for what you have done, but I have watched this Forum for 5 weeks and can't recall a similar situation arising. Has anyone else had anything like it ? Sorry going on and thanks in anticipation. |
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debtinfo
forum expert
2826 Posts |
Posted - 26 July 2009 : 08:12:36
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Hi was the mortgage a buy to let.
If so The Mortgage company usually has the option to appoint a LPA (law of the property act receiver) to collect the rent for them. If they do not do this then the OR will collect the rent.
Their is much discussion at the moment as to Teneneted properties but the one thing that all OR's agree on is the the bankrupt person can no longer collect the rent.
Perhaps it would be worth contacting the mortgage company why they are not appointing an LPA receiver |
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migmash
Starting Member
United Kingdom
25 Posts |
Posted - 26 July 2009 : 09:15:43
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Thanks debtinfo for reply. Yes I did purchase the property on a Buy to Let which I thought at the time was a sensible investment! All payments are up to date and having only last week asked to be made Bankrupt, I can only assume that M/gage Express have not yet been informed. I guess my next move is to tell them myself and ask them to appoint a Law of property act receiver. If I do this and the O.R. then doesn't get the rent, and I have 2 local e/agents valuations which put the property in negative equity, would I then be able to ask to buy the B/I for the usual £211.
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debtinfo
forum expert
2826 Posts |
Posted - 26 July 2009 : 09:44:13
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You can buy the B/I back but it will cost more because it is soley owned.
Couple of things to note. The LPA Receiver will have total control over the property. This includes up to selling the property. Many do not as they dont want to make a loss, but it is something to think about.
The OR's usually want an LPA Receiver and sometimes ask for the rent to be paid to them to jolt the Mortgage company into action. The Reason the OR's do this is that if they collect the rent they may become defacto landlords with all the responsibilities that this entails. needless to say they dont want t have to go out and fix someones boiler |
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RHB
Senior Member
1159 Posts |
Posted - 26 July 2009 : 14:13:26
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| Why won't your tenant pay the rent to someone else? |
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migmash
Starting Member
United Kingdom
25 Posts |
Posted - 26 July 2009 : 14:54:32
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Hi again debtinfo, thanks for reply, I just wanted to make sure that I read it correctly. Would the O.R. be pleased if I were to get M/gage Express to involve a Law receiver to take the rent instead of the O.R.s office taking it?
The O.R. did tell me that they would have no intention whatsoever of paying the Mortgage with the rent, though I have never missed a payment on the rented house, or my own home, and once my tenants get evicted, there opinion was, well basically, hard luck?!
Will a Law receiver appointed by M/gage Express pay M/gage Express the rent money to carry on with the m/gage payments, and therefore make it possible for me to acquire the BI?, or just give it to the O.R.s office.
Also when you said O.R. likes to "jolt them into action" is this so that the O.R. can get the few months rent money , before the Tenants eviction, without the upheavel and responsibility of maintenance and repairs/problems? |
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migmash
Starting Member
United Kingdom
25 Posts |
Posted - 26 July 2009 : 15:23:58
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| Hello RHB, it's not that my tenants won't pay anyone else, it's because the O.R. have written to them explaining the situation, that no mortgage is going to be paid. . . resulting in there eviction, and as I am B/R they end up with no home and no deposit. |
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debtinfo
forum expert
2826 Posts |
Posted - 26 July 2009 : 15:46:39
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| The reason is (and i cant speak for every OR) that the OR doesnt want to be landlord and wants the mortcage company to take on the responsibility. They may have already asked the mortgage company, maybee a good idea to ask the OR if they considered the option. These LPA receivers were very uncommon in bankrutcy until recently when the housing market detonated. Otherwise you could get the tennent to start making demands to the OR as per his agreement. |
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migmash
Starting Member
United Kingdom
25 Posts |
Posted - 26 July 2009 : 17:18:27
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| Thanks debtinfo, now you mention it, I seem to recall they were having some problems only last week?! ;-) |
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Has anyone else had anything like this ?
