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Kate.ll
Starting Member
19 Posts |
 Posted - 14 January 2011 : 23:24:31
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Buying out my interest - Trustee refuses as wants to rent prop. This is further to my question re Possession order on 7th Jan.
Have now received a reply from the Trustee who is not willing to accept my offer (although I have not mentioned a possible increase of £5k yet = 20% of figure required). Basically he is not prepared to sell it to anyone in the current climate and wishes to rent it out for a return to the creditors until the market recovers. Both my 1st & 2nd charges on prop are not happy about this and have confirmed by phone that they will not agree to prop rental.(Mort & Bus. loan charges on prop). He is aware that 2nd charge had indicated that very rarely do they agree to rental due to risk and they do not get much out of it, plus they want either the full monthly repayments or settlement in full which they have indicated they will repossess if not settled soon and then Trustee will end up with whatever is less and that is around the figure I have offered or maybe less. It seems like we are going round in circles. I will let the charges inform him of the non- rental approach and see what arises. Has anyone any other suggestions? Thanks |
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RHB
Senior Member
1159 Posts |
Posted - 16 January 2011 : 08:47:32
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| I think you have no choice but to wait & see. Are you living in the property right now? I think your mortgage provider may well say something different to the trustee direct than what they would to you as well. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 16 January 2011 : 11:53:29
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Kate
I had similar challlenges with my trustee and the mortgage company not speaking to each other, both playing the data protection card and generally being silly.
I emailed a transcript of every phone call and discussion to both sides and the mortgage companies lawyers
The trustee in fairness came on board quite quickly, the mortgage company were a bit slower but when they did come on board and make suggestions I was able to say on XZY date you were informed of this action, you did not reply or you said ABC which was included in email dated XYZ.
the voice of reason was the mortgage companies lawyers,
it took 4 months of frustration but i think that we are now in the right direction.
good luck Richard |
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Kate.ll
Starting Member
19 Posts |
Posted - 31 January 2011 : 22:58:12
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| I now have a further update. The Trustee is aware that the 2nd charge are not consenting to the prop being let. He is taking us to court next week for poss. order and has said that we can rent it from him thereafter, he does not seem to grasp that he cannot rent it even to us. As this is the case the Bank (2nd charge) want full settlement of the business loan and are also going for poss. order. I have told the Trustee of the Bank's intentions and made it clear that our offer which is 20% below the figure required to buy out the BI still stands. The o/s debts (1st & 2nd chg) amount to £205k the prop valued Nov 2010 at £235k. Trustee looking for £36k we have offered £28k and he will not accept. Can anyone shed any light on his logic here? Seems if it is sold for asking price then after costs Trustee will end up with less than our offer. Will the judge take this into consideration? Surely realising the best figure for the creditors is what this is all about. Or am I simply better off handing the keys back? Court costs of £2.5k if I lose. Hope someone can help as time is running out. Speaking to my solicitor asap. |
Edited by - Kate.ll on 31 January 2011 23:12:04 |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 01 February 2011 : 18:14:11
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Kate
unless the solicitor is an insolvency specialist go direct email to one of the experts to the left.
are the mortgage company with first charge aware of planned proceedings put it in email so that they are aware, they might want to protect their asset
Richard |
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RHB
Senior Member
1159 Posts |
Posted - 01 February 2011 : 18:18:20
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| I suppose if he rents the house to you he will get the equity & THE RENT. |
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RHB
Senior Member
1159 Posts |
Posted - 01 February 2011 : 18:20:08
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| Might be worth putting your best offer forward now to avoid court. |
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Kate.ll
Starting Member
19 Posts |
Posted - 01 February 2011 : 21:44:25
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quote:
Originally posted by Richard P
Kate
unless the solicitor is an insolvency specialist go direct email to one of the experts to the left.
are the mortgage company with first charge aware of planned proceedings put it in email so that they are aware, they might want to protect their asset
Richard
Richard, solicitor is an insolvency specialist. He said today that the court cannot compel the Trustee to accept my offer, that is between the Tstee & the creditors. I have spoken to the Trustee and it seems the order is for 28 days usually and I can still negotiate with them after court. They are panicky as the Bank (2nd chg) have chance to sell the prop once they have their poss order and it is clear that the Bank will sell for best figure but will not wait too long as long as their debt is covered leaving less for Tstee. They have said submit your best offer soon. It may avoid court but it will probably not as the poss order can still be obtained in case it falls thru and they can then action order. Tstee did indicate that if I hand keys back to 1st or 2nd chg I would be in trouble !!
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Kate.ll
Starting Member
19 Posts |
Posted - 01 February 2011 : 21:48:34
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quote:
Originally posted by RHB
Might be worth putting your best offer forward now to avoid court.
Yes I think now is the time to put best offer on table. You are right they would get rent and equity, plus bank will not allow them to rent it to me and will take proceedings so it has become a 2 horse race so to speak and I am in the middle. Frustatingly with an offer that is probably similar to or poss more than the Tstee will end up with anyway whoever sells it. Market here not really moving plus 300 new homes starting to be built few mins away. Am arranging for quick sale / 90 day valuation to be carried out tomorrow. Thanks
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 02 February 2011 : 10:20:06
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OK great that your solicitor is insolvency specialst that should help
also go onto house sale price comparison web site for example upmystreet or ourproperty.com.
if it is in your favour you can then produce the print out to show that your offer is reasonable in the circumstances
Richard |
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Kate.ll
Starting Member
19 Posts |
Posted - 06 February 2011 : 10:29:46
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[quote]Originally posted by Richard P
OK great that your solicitor is insolvency specialst that should help
also go onto house sale price comparison web site for example upmystreet or ourproperty.com.
if it is in your favour you can then produce the print out to show that your offer is reasonable in the circumstances
Richard
Hi Richard, things have progressed quickly this week bearing in mind we are going to court this Tues for poss order. Tstee has offered us chance to stay here subject to several provisions. He has done this we think as 2nd charge is also getting poss order and he will get less if they take it. Basically they are not accepting our offer of £23k against the £36k they want. But they will allow us to rent until we have sufficient to make a nearer offer.They also want monthly payment towards back rent and us to arrange to pay capital payts to 2nd charge each month to keep them at bay. These capital payments will be credited back to us when purchase BI or if unable they will come back to us on sale. Finally they want us to pay litigation costs of £3k. A steep mountain as you can see. We have offered £600pm for rent £300pm towards back rent & £30k to purchase BI and will pay lloyds too. If we pay lloyds £600 x 12 months this will be the £7k that we have back to raise £23k to £30k. The worst part of this is the rent it is costing us in the meantime but as we cannot raise another £7k now this is the only option. I am trying to ascertain whether the purchase of BI has to be within 3 year period from BR which will be Jan 2012. Prop valued recently at £245, Tstee value at £235k. Do you think I am approaching my offer the right way?
Thanks Kate
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RHB
Senior Member
1159 Posts |
Posted - 06 February 2011 : 17:19:47
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| If you can afford these amounts it seems one way that allows you to keep your house. |
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Kate.ll
Starting Member
19 Posts |
Posted - 06 February 2011 : 17:30:00
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quote:
Originally posted by RHB
If you can afford these amounts it seems one way that allows you to keep your house.
They are affordable just, only worry will be over interest rate rise on 2nd charge debt. I am seriously considering renting a room to mature student understand tax free rate of £4200 p.a but I guess this will affect my tax credits??
It will get a bit easier after we purchase BI as no rent but have to pay back family as some of the £23k is borrowed.
Thanks for all your help on this site it is such a help.
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RHB
Senior Member
1159 Posts |
Posted - 07 February 2011 : 13:33:36
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| Let us know what happens. |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 07 February 2011 : 13:42:06
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Good luck from me - hope it all goes ok for you.
Buckle your seat belt Dorothy, 'cos Kansas is going bye bye.
Jan
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Kate.ll
Starting Member
19 Posts |
Posted - 07 February 2011 : 13:48:04
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quote:
Originally posted by RHB
Let us know what happens.
Just heard from Tstee he wants £33k (offered £30k) plus he wants rent arrears to continueto be paid after BI purchased. My calculations show it is £20,400 less what we pay over next 16 months if we go for £33k= £17200. This means he will get over £54k which is more than the BR. I assume he is trying to cover his costs. Thing is if 2nd chg takes it he will be lucky to get £20k after fees as my local Agent 90 day valn was £230k and debts = £205k. Should I point this out or will it rock the boat now we are at crucial negotiation stage. 24 hours to go til court case.
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Buying out my interest -
