TSB part interest part repayment Mortgage Proceedings issued for repossession

[Openlaw15]

Re: TSB part interest part repayment Mortgage Proceedings issued for repossession

I have mortgage originally with C&G, now moved to TSB in two sub accounts on the same account number. Current property value at least £120k

1) Original amount with cancelled endowment, so now interest only of £25000, term expired 2012. Negotiated a further 12 month extension now expired.

2) Further advance in the mid 1990s on a repayment basis, £30000 still outstanding with 16 years left to run on the mortgage
So mortgage is in two parts with the same lender, now totaling £55000, (originally £65000.) All monthly payments up to date with good payment history. but original capital amount of £25K needs repaying.

Taken from the court papers, they have issued court action for repossession based on "other breach of the mortgage", and are asking for possession on the following grounds:-

"The defendant is in breach of the terms by failing to repay all the sums due to the claimant by the end of the term of the loan secured by the mortgage granted in 1987 which should have been repaid by 2012. As the term of the loan has expired the claimant requires full payment of the loan of £55000"

They are insisting I do a "mortgage review" which will involve a credit search and score which I would rather avoid.


I have had a slightly head down approach to this previously due to other personal issues but are in discussions with the TSB and their solicitors now. I had hoped to get it resolved before it came to this.

I would like to get this court action delayed or stopped as I will not be in the country on the hearing date without a massive rearrangement of personal plans but would hate it to be found in their favour by non attendance. They will not entertain delaying the hearing or negotiating out of court.

I accept I owe the £25K (and will have this amount available for them within the next 6-12 months) but are they correct to claim for repossession for the full £55k when £30k is still being paid within the terms of the mortgage. ie can they cancel the whole mortgage agreement?

It is possible to get an adjournment and I think this is best to give you time to submit a good defence. Your original mortgage was due to be paid off in 2012, but what was the new date with the extensions?

[moatmeister]

Re: TSB part interest part repayment Mortgage Proceedings issued for repossession

Are these two charges just TSB's alone? Do TSB hold the deeds to your property, if so since they're registered they have a legal interest.

Yes I believe they are just with TSB (or previously C&G) I think I have the deeds somewhere. I am sure the original conveyancing solicitors returned them to me when they closed down many years ago. Not sure I could find them in the required timescale though!)

[moatmeister]

Re: TSB part interest part repayment Mortgage Proceedings issued for repossession

Moatmeister,
Personally I think you should be seeking qualified advice locally!

nem

Hi Nemesis
Thanks, I intend to do that later this afternoon or tomorrow, waiting to get appointment, however I like to understand the background of what is going on and get my head round it all and the forums are great places for generating ideas

[Openlaw15]

Re: TSB part interest part repayment Mortgage Proceedings issued for repossession

You had taken your mortgage out in 1987 with TSB and due to be paid off in 2012, which is a 25 year mortgage right. The property has a £55,000 mortgage by TSB so this bank still has more than adequate security and does not need to repossess you. Your current value of the property is 120,000 and minus 55,000 gives £65 equity (ie profit).


What was the revised mortgage paid off date since the second mortgage?

[nemesis45]

Re: TSB part interest part repayment Mortgage Proceedings issued for repossession

Hi Nemesis
Thanks, I intend to do that later this afternoon or tomorrow, waiting to get appointment, however I like to understand the background of what is going on and get my head round it all and the forums are great places for generating ideas

I think things are getting more than a little over complicated for a forum such as this.

I wish you the best of luck getting this sorted.

nen

[Openlaw15]

Re: TSB part interest part repayment Mortgage Proceedings issued for repossession

Does that then mean that the court summons has been filed incorrectly when they are quite clearly claiming the full £55k instead of the £25k and therefore could be defended as such??

No, the court summons is correct, TSB are just trying to make you pay all the arrears and the entire mortgage which is tremendously unfair. So this is why equity will help you under the AJA 1970 (as amended) and Norgan case law et al.

NB: AJA 1973/ Norgan (common law) - judge under AJA 1973 has discretion to disregard TSB's clause to pay all the mortgage including arrears/ interest charges all in one go.

[moatmeister]

Re: TSB part interest part repayment Mortgage Proceedings issued for repossession

What was the revised mortgage paid off date since the second mortgage?

The remaining term on the further advance with £30k outstanding is approx 16years and 9 months

[Openlaw15]

Re: TSB part interest part repayment Mortgage Proceedings issued for repossession

Section 8, Administration of Justice Act 1973 (amends 1970 Act etc)

"Extension of powers of court in action by mortgagee of dwelling-house"
(1)Where by a mortgage of land which consists of or includes a dwelling-house, or by any agreement between the mortgage under such a mortgage and the mortgagor, the mortgagor is entitled or is to be permitted to pay the principal sum secured by instalments or otherwise to defer payment of it in whole or in part, but provision is also made for earlier payment in the event of any default by the mortgagor or of a demand by the mortgagee or otherwise, then for purposes of section 36 of the M1Administration of Justice Act 1970 (under which a court has power to delay giving a mortgagee possession of the mortgaged property so as to allow the mortgagor a reasonable time to pay any sums due under the mortgage) a court may treat as due under the mortgage on account of the principal sum secured and of interest on it only such amounts as the mortgagor would have expected to be required to pay if there had been no such provision for earlier payment.

(2)A court shall not exercise by virtue of subsection (1) above the powers conferred by section 36 of the M2Administration of Justice Act 1970 unless it appears to the court not only that the mortgagor is likely to be able within a reasonable period to pay any amounts regarded (in accordance with subsection (1) above) as due on account of the principal sum secured, together with the interest on those amounts, but also that he is likely to be able by the end of that period to pay any further amounts that he would have expected to be required to pay by then on account of that sum and of interest on it if there had been no such provision as is referred to in subsection (1) above for earlier payment."

This is the law I was referring to.

[moatmeister]

Re: TSB part interest part repayment Mortgage Proceedings issued for repossession

What was the revised mortgage paid off date since the second mortgage?

And from the paper work i can find I would say the granted extension to the original term expired in 1 January 2014

[Openlaw15]

Re: TSB part interest part repayment Mortgage Proceedings issued for repossession

The remaining term on the further advance with £30k outstanding is approx 16years and 9 months

Nem is right, I do want you to take qualified legal advice...I am just making you legally savvy with regard to providing a background in property law and mortgage law.

NB: what is the new date to pay off the entire mortgage, including the original and the new mortgages? If your solicitor does not mention equitable rights...he's not worth his/ her fee. Make sure you know what they're talking about and when they're just giving you little advice for lots of money.

[Openlaw15]

Re: TSB part interest part repayment Mortgage Proceedings issued for repossession

And from the paper work i can find I would say the granted extension to the original term expired in 1 January 2014

My point is that you're still being permitted to pay the mortgage even though its expired since 2012 (when it was due to be paid off), including the Jan 2014 date (again expired). Are you in a position to pay it off all the arrears over say 2-4 years? The bank will argue Norgan (1996) does not apply now as you're outside the original mortgage term. This is why am asking if you have a new mortgage redemption date?

[moatmeister]

Re: TSB part interest part repayment Mortgage Proceedings issued for repossession

NB: what is the new date to pay off the entire mortgage, including the original and the new mortgages?

Thanks you have been more than helpful. I am hoping to see solicitor this afternoon or tomorrow morning. But just to be clear I am not sure what you are asking re the above quote, so to summarise:

The original £25k interest only ended but was officially extended by C&G until 31/12/13 but appears to have been running "unoffiicially" ever since
The further advance on a repayment basis currently of £30k expires in 2031 with approx 16yrs 9 months to run.
All monthly payments up to date

[moatmeister]

Re: TSB part interest part repayment Mortgage Proceedings issued for repossession

Are you in a position to pay it off all the arrears over say 2-4 years?

Yes that would be no problem, perhaps even sooner. On the shelter website here: http://england.shelter.org.uk/get_ad...e_court_action

it says "the court should delay court action if your income is about to improve enough to enable you to"

Which is the case. My problem is I just dont have it now!!

[Openlaw15]

Re: TSB part interest part repayment Mortgage Proceedings issued for repossession

So, to sum up, how much of the mortgage including arrears etc is left?

C & G - how much in total?

TSB - how much in total?

[moatmeister]

Re: TSB part interest part repayment Mortgage Proceedings issued for repossession

So, to sum up, how much of the mortgage including arrears etc is left?

C & G - how much in total?

TSB - how much in total?

As stated above, so to summarise:

The original £25k interest only ended but was officially extended by C&G until 31/12/13 but appears to have been running "unoffiicially" ever since
The further advance on a repayment basis currently of £30k expires in 2031 with approx 16yrs 9 months to run.
All monthly payments up to date

C&G nothing as the mortgate was transferred (without my permission!) to TSB when Lloyds split everything up and relaunched TSB

All the remaing balance totalling £55k including the £25k term expired amont with TSB