lpa receivers

[kanine]

Hello
Can someone please help me with the following, I am the executor of my uncles will and his beneficiary. In 2009 he entered into a mortgage with Outlook finance ltd over a small farm situated in England. My uncle died in June 2011. Since then I have maintained the paymentsof the mortgage. In Nov 2012 Outlook demanded back the 465k mortgage as my uncle had "died" 2 days later they appointed an lpa receiver who ejected me and employees from the premises.

All obligations to the company had been met on the day the lpa was appointed. They said there was a clause in the mortgage that they could take possession if he died.

I have instructed solicitors to act and will be issuing proceedings shortly but in the meantime the LPA receiver has used 15k of my business assets that he has no duristiction over, he has prevented me from running my business and poleaxed my income, as this is a farm there is livestock involved and in short it has degenerated into a total farce. I genuinly feel that this matter could be resolved with dialogue and an honest appraisel of the situation but the lpa has never contacted us to meet and understand our position or what I am supposed to have breached or given us a reasonable chance to redeem the mortgage.

I am confident that my solicitors will deal with this in the fullness of time, but has anyone ever been in the same position and surely the law is in need of major surgery if this commercial looting is lawful.

[enaid]

Re: lpa receivers

Hi kanine and welcome I can not help you or even comment on your situation, only to wish you good luck with it and if you do not get the help you need on here please keep us up to speed with your situation as it may help others.
Thanks Enaid x

[Nikolai]

Re: lpa receivers

LPA receivers have duties under the law, just like anyone else. Contrary to what some seem to believe they do not have carte blanche to act as they see fit. Sure they are appointed by the mortgagee, but they have a duty to act in good faith and use their powers for proper purposes. Search online for "powers of lpa receivers" for some general background if you haven't already done so, but I think you are right to challenge this legally.

[MissFM]

Re: lpa receivers

http://www.insolvencydirect.bis.gov....rt3/part_3.htm

[kanine]

Re: lpa receivers

Thanks both. The lpa seems reluctant to engage at all, he leaves it all to the mortgagee Outlook finance (Derek Fradgley)who has TOTALLY TRASHED My BUSINESS, that was operating there. I had a commercial lease with them for the livestock which was fully paid up as well, he tried to remove and sell the livestock but didn't know the law in that respect and is now stuck under DEFRA regulations for at least two months while animals are tested in particular TB. In the meantime a collection of unknowns are supposedly looking after the stock, I did not owe Outlook anything in arrears until the day the receiver arrived, they have blown a fortune for no gain, have pilferred 15k of my stocks without asking, and are totally bogged down and are involving 3 parties in the debacle. We are acting responsibly in respecting the lpa and his position and taking redress through the courts but I am speechless as to the absurdity of the situation. My losses are mounting into 6 figures and they went as far as threatening to slaughter the livestock the week before christmas in a desperate attempt to curb their costs. I will demand the lpa meets me as soon as possible and tells me why he was appointed and what evidence he was shown to back it up. My uncle died 18 months ago seems odd to call the mortgage in now.

[MissFM]

Re: lpa receivers

Kanine - how terribly distressing that you are going through this needless carp. I hope some more knowledgeable hot-rod LB will appear to tell you the actual process and how to circumvent the destructive nonsense you have faced. Having acted as executor myself the only thing I can say without any doubt is that you have the right, the responsibility and the duty to both oversee and control the process in the interests of the benificiary. From your post it seems that the LPA is devaluing the inheritance, trashing the business, putting the livestock at risk etc. - it is hard to see how they could possibly have any valid remit to do this, as you say. I do hope you have a very efficient lawyer and wish you every success (huge sympathy FWIW) FM

[bluebottle]

Re: lpa receivers

Kanine - Is the Office of the Official Receiver or the Insolvency Service involved? Your solicitor is, perhaps, the best person to advise you in this case, but I would not rule out involving the local police Economic Crime Unit (ECU), especially if the LPA receiver and Outlook Finance Limited have acted ultra vires. As Nikolai has stated, LPA receivers cannot do what they like and have to obey the law the same as everyone else. I also have my doubts about the behaviour and actions of Outlook Finance Limited. Whether you have a claim, in law, against the company and the individual you mention is something your solicitor can advise you on. My gut-feeling is that someone is going to have a Size 11 boot inserted into a certain bodily orifice at the lowermost point of their alimentary canal. Someone who has frittered £15,000 of your money? The individual you name may well get the same or a similar Size 11 boot hit them in the mouth or the head when they least expect it. Stay focused and stay strong and you with come through this.

[CYNthesys]

Re: lpa receivers

If I understand this right you say you were operating a business from your deceased relatives property. As you had a lease you were in lawful occupation as a sitting tenant, and I believe that they would have to obtain a court order to evict you or interfere with your business
Normally when a LPA receiver is appointed they would write to any tenants informing of their appointment, and instructing the tenant to pay all future rents direct to them.
What you have said seems to suggest that as the mortgagee and the LPA receivers are working together, with the mortgagee calling the shots the mortgagee is therefore acting as mortgagee in possession and an be held responsible and liable for what has been going on.
The following link is the best article Ive ever read about LP Receiverships, Although this article focuses on BTL mortgages the principles remain the same
http://www.jgrweb.com/downloads/buy_...operty_law.pdf

[MissFM]

Re: lpa receivers

Again - FWIW - when my father died he had a lifetime tenancy at a peppercorn rent as he had invested all his money in developing the property he lived in on the understanding that he would enjoy it during his lifetime and the landlords would inherit all upon his death (ie he had multiplied the value of their property by approx x10). We (my siblings and I) as his beneficiaries would make no claim. When he did die the landlords tried to impose a (huge and unaffordable) market rent, based upon the enormous improvements he had made to the property, immediately, without giving the executors time to sort out his things, get probate, etc.. The legal advice we had then (which the landlords were forced to accept, with no court involved) was that the executors are absolutely in charge as if the person were still alive until their duties as executors are satisfactorily discharged.

[kanine]

Re: lpa receivers

Thankyou for all replies, I will post detailed response later after I have followed the various links.

[kanine]

Re: lpa receivers

Thankyou for all responses.
Firstly there is no official receiver ot trustee etc, and secondly I did run the farm as a business (sole trader) but not with a lease. When I mention lease it is in the sense that OUTLOOK FINANCE leased the dairy herd to me. However Outlook did not furnish me with the correct paperwork for that lease after I accepted and signed the terms of it. I have honoured 100% the terms of the lease for the herd as well as the mortgage on the farm, and all were paid until Derek Fradgley of Outlook finance Came at short notice one sunday morning and demanded I repay 160k immediately so that he could repay the loan he had taken out to supply the dairy herd as it was considered invalid. I asked him to put it all in writing which he didn't do but instead sent me a demand for the full mortgage amount of 465k on the 17/11/12, onn the basis that my uncle had died (18 months earlier) his demand letters were undated. On the 21/11/12 the LPA receiver arrived and forced us off the premises. That evening I received an email from his solicitor stating that the LPA receiver had been appointed and that he was also employed as Outlooks agent to reposess the dairy herd, although he has always denied he has any involvement in the dairy herd, they set about selling the animals and ran straight into a brick wall of regulation which in short mens 5 weeks on they haven't sold an animal and won't for another 5 at least, there costs went out of control and all sorts happened, major thefts from the site etc, but importantly they had no feed that they owned for the stock, just mine which they have helped themselves to, as well as my fuel my equipment and alot of cattle that were not party to the lease in any event. My milk income is gone and lpa keeps passing the buck about payment for the goods thay have used, he tells me to charge the auctioneers they hired, they tell me to send it to Outlook finance, every time I try to pin somebody down the trail goes back to outlook finance. When they discovered they couldn't sell the cattle before christmas they wanted to slaughter the entire herd The lpa receiver then sent me a letter stating that as bailie of the goods he was going to slaughter the cattle.

My solicitors have put them all on notice that proceedings will be issued in the new year both in terms of the receiver appointment and the cattle lease. My concern is the time this takes but also the incalculable damage that is being done to my business. I think it is clear the receiver was appointed to get the cattle to save outlook getting a court order to posess the cattle ( which would have been vigorously defended). The lpa letter only states his interest in the land and building not the livestock. Does he have the power to force me out of my business premises at the drop of a hat without getting to grips with the situation or at the very least checking that his facts were correct. Always remember my commitments to Outlook had been honoured, not one letter of default has been sent to me.

[bluebottle]

Re: lpa receivers

It sounds like Derek Fradgley overextended himself and is now panicking like an hysterical schoolgirl as he knows, himself, he is about to be stuffed, trussed and roasted financially and legally. I am sure your solicitor will help you prepare a claim against Derek Fradgley, Outlook Finance Limited and the LPA receiver for the losses you have suffered, not only financially, but for equipment, etc., that has been "stolen". As for the feed and money belonging to you to which they have helped themselves, I would treat that as Theft or, possibly, Fraud by False Misrepresentation on their part. However, do discuss this with your solicitor, who may advise you to report the matter to the police. If that happens, I doubt Derek Fradgley and the LPA receiver will find Imodium Plus is strong enough.

[CYNthesys]

Re: lpa receivers

You say that the LPA Receiver was appointed as Outlooks agent. LPA receivers act as mortgagors agents and only have limited powers conferred by statute. Unless payment has been demanded from you by the lender, power of sale will not have arisen. Were borrowings expressed as being repayable on demand? Was a demand for repayment of the balance of your agreement made by your lender?
Generally speaking unless the contract stipulates that any Receiver will be the lenders agent it would appear that the lender and the receivers are acting well outside of their powers

[bluebottle]

Re: lpa receivers

You say that the LPA Receiver was appointed as Outlooks agent. LPA receivers act as mortgagors agents and only have limited powers conferred by statute. Unless payment has been demanded from you by the lender, power of sale will not have arisen. Were borrowings expressed as being repayable on demand? Was a demand for repayment of the balance of your agreement made by your lender?
Generally speaking unless the contract stipulates that any Receiver will be the lenders agent it would appear that the lender and the receivers are acting well outside of their powers

If this does, indeed, prove to be the case, it is very likely your solicitor will advise you to report this matter to the police.

[kanine]

Re: lpa receivers

Thankyou all, I have taken comfort from paper by Clive Whitfield Jones.