Interest only Mortgage repayment

[Gprit]

My late wife took out a mortgage with Platform Holdings on an interest only basis. The property was also solely in the name of my late wife, who died in January 2011. I was/am the executor. Sometime before that, the mortgage was taken over by J P Morgan.

At the time of my wife's death I contacted J P Morgan to transfer the mortgage into my name but they refused as ‘they were no longer lending and considered it as new business’. This was despite (as a precaution) having obtained a letter from Platform Holdings stated that in the event of my wife;'s death the mortgage COULD be transferred to my name).

The mortgage was for £68,000 against property valued iro £80,000. In March 2016 I paid J P Morgan £28,000 in reduction of the mortgage and intended to repay the remainder by selling a property that I had in France. J P Morgan agreed to give it 12 months to do this (ie until March 2017).

The mortgage was subsequently sold to Rooftop Mortgages. In the meantime due to the stagnant property market in France the property did not sell, so I chose to reverse my strategy and become resident in France and sell the mortgaged property.

I spoke to Rooftop Mortgages around the end of August this year, explained the situation, that the property was vacant and was now for sale with a local agent. I was very surprised therefore to receive a letter by email (as I am abroad) from their solicitors again asking for repayment proposals or the property may be repossessed and sold. I have naturally responded to this letter, stating that I am sure anyone will agree that a sensible mechanism is in place for complete repayment of the mortgage and it just needs a little patience – no need to threaten any ‘heavy handed actions’.

My questions therefore are:
1) Can they repossess the property and sell at below market valuation just to repay their mortgage, even if the property is already for sale? Would they not have a'duty of care' to obtain a market valuation price?
2) Should they (or J P Morgan) have offered alternatives other than simply demand repayment?
3) As I am resident abroad, if they did continue the ‘heavy handed’ approach and went to court to seek a repossession order, am I correct in saying that a court cannot issue a CCJ in the Uk against a non resident?

I would add that all payments have been made without fail and on time and there are no arrears.



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[jaguarsuk]

Re: Interest only Mortgage repayment

My late wife took out a mortgage with Platform Holdings on an interest only basis. The property was also solely in the name of my late wife, who died in January 2011. I was/am the executor. Sometime before that, the mortgage was taken over by J P Morgan.

At the time of my wife's death I contacted J P Morgan to transfer the mortgage into my name but they refused as ‘they were no longer lending and considered it as new business’. This was despite (as a precaution) having obtained a letter from Platform Holdings stated that in the event of my wife;'s death the mortgage COULD be transferred to my name).

The mortgage was for £68,000 against property valued iro £80,000. In March 2016 I paid J P Morgan £28,000 in reduction of the mortgage and intended to repay the remainder by selling a property that I had in France. J P Morgan agreed to give it 12 months to do this (ie until March 2017).

The mortgage was subsequently sold to Rooftop Mortgages. In the meantime due to the stagnant property market in France the property did not sell, so I chose to reverse my strategy and become resident in France and sell the mortgaged property.

I spoke to Rooftop Mortgages around the end of August this year, explained the situation, that the property was vacant and was now for sale with a local agent. I was very surprised therefore to receive a letter by email (as I am abroad) from their solicitors again asking for repayment proposals or the property may be repossessed and sold. I have naturally responded to this letter, stating that I am sure anyone will agree that a sensible mechanism is in place for complete repayment of the mortgage and it just needs a little patience – no need to threaten any ‘heavy handed actions’.

My questions therefore are:
1) Can they repossess the property and sell at below market valuation just to repay their mortgage, even if the property is already for sale? Would they not have a'duty of care' to obtain a market valuation price?
2) Should they (or J P Morgan) have offered alternatives other than simply demand repayment?
3) As I am resident abroad, if they did continue the ‘heavy handed’ approach and went to court to seek a repossession order, am I correct in saying that a court cannot issue a CCJ in the Uk against a non resident?

I would add that all payments have been made without fail and on time and there are no arrears.



.

Hi

Sorry to hear of your loss.

1) Yes they can if they go to court and are successful in obtaining repossession. Once the property is their they can sell it for what they like, in the same way you can.
2) No, they can make a demand for payment so far as the terms and conditions of the mortgage allow. If you don't have the T&C's get a hold of them and see what your wife originally agreed.
3) I can't help you with this, because the property is not in your name and is part of the estate of your wife I don't know where you would stand with that. Someone who might know could be @des8 or [MENTION=71570]R0b[/MENTION] and if not at least be able to tag in someone who knows.

[R0b]

Re: Interest only Mortgage repayment

Mortgages are not really my thing I'm afraid, perhaps [MENTION=87380]Diana M[/MENTION] might be of more assistance

[des8]

Re: Interest only Mortgage repayment

That letter from Platform regarding the possible transfer of the mortgage is interesting.
Could it be argued that it became a term of the mortgage, and so whoever buys the mortgage is likewise bound by it?

The mortgagee has a duty to obtain the market price (not the valuation) and this can be discharged by selling at auction.

The property can be repossessed whilst you are abroad.
Your problems will mount if the house sells below the amount needed to clear the mortgage as JP Morgan might start to chase you as executor for funds from the estate of your late wife to clear the debt.

As R0b tagging [MENTION=87380]Diana M[/MENTION]

[Gprit]

Re: Interest only Mortgage repayment

yes, I tried arguing that with J P Morgan (not taken it up with Rooftop) but it just fell on deaf ears. That was 6 years ago and if I had been able to transfer the mortgage (and hence the Property Title at Land Registry) then I MIGHT have been able to remortgage.

The property can be repossessed whilst you are abroad.

My understanding is that the property cannot be repossessed if I am not a resident of the UK and the Mortgage company are aware of my residential address abroad.

This is taken from the website of the 'CCJ factory' which is Northampton County Court

The Centre will not issue any of the following types of claim –

(1) a claim against more than two defendants;
(2) a claim against two defendants where a different sum is claimed against each of them;
(3) a claim against the Crown;
(4) a claim for an amount in a foreign currency;
(5) a claim where either party is known to be a child or protected party within Part 21;
(6) a claim where the claimant is a legally assisted person within the meaning of the Legal Aid Act 1988;
(7) a claim where the defendant’s address for service as it appears on the claim form is not in England and Wales;
(8) a claim which is to be issued under Part 8.

also:
A CCJ can only be obtained against a UK resident, if you are living outside the UK they cannot legally obtain one, although there are incidents where some creditors have obtained one using a previous known address, if this has happened it can easily be set aside see; National Debtline England & Wales | Debt Advice | Factsheet 12 How To Set Aside A Judgment In The county court.

Ah! - I have also found another thread on here that seems to confirm that:
http://legalbeagles.info/forums/show...d-while-abroad:

[jaguarsuk]

Re: Interest only Mortgage repayment

yes, I tried arguing that with J P Morgan (not taken it up with Rooftop) but it just fell on deaf ears. That was 6 years ago and if I had been able to transfer the mortgage (and hence the Property Title at Land Registry) then I MIGHT have been able to remortgage.


My understanding is that the property cannot be repossessed if I am not a resident of the UK and the Mortgage company are aware of my residential address abroad.

This is taken from the website of the 'CCJ factory' which is Northampton County Court

The Centre will not issue any of the following types of claim –

(1) a claim against more than two defendants;
(2) a claim against two defendants where a different sum is claimed against each of them;
(3) a claim against the Crown;
(4) a claim for an amount in a foreign currency;
(5) a claim where either party is known to be a child or protected party within Part 21;
(6) a claim where the claimant is a legally assisted person within the meaning of the Legal Aid Act 1988;
(7) a claim where the defendant’s address for service as it appears on the claim form is not in England and Wales;
(8) a claim which is to be issued under Part 8.

also:
A CCJ can only be obtained against a UK resident, if you are living outside the UK they cannot legally obtain one, although there are incidents where some creditors have obtained one using a previous known address, if this has happened it can easily be set aside see; National Debtline England & Wales | Debt Advice | Factsheet 12 How To Set Aside A Judgment In The county court.

Ah! - I have also found another thread on here that seems to confirm that:
http://legalbeagles.info/forums/show...d-while-abroad:

The proceedings wouldn't be issued against you though, they would be issued against the Estate of your late Wife as the legal owner of the property. Your residential status as the executor wouldn't matter in that regard.

[Gprit]

Re: Interest only Mortgage repayment

But surely the estate of my late wife rests with the executor (and sole beneficiary) - who is non resident.

[jaguarsuk]

Re: Interest only Mortgage repayment

But surely the estate of my late wife rests with the executor (and sole beneficiary) - who is non resident.

That may be the case, but someone more qualified than I would have to confirm it.

In your original post you stated they agreed to transfer the Mortgage over to your name, if they had would the intention still have been to sell? If not, have you explored mortgage opportunities yourself to buy the house?

[des8]

Re: Interest only Mortgage repayment

Sorry for delay in getting back to thread, but been out all day (dentist!)

If county court does not have jurisdiction, action can be brought in the High Court.
Living abroad won't help you then and costs will be much higher.

IMO you should try negotiating with Rooftop.
Point out the letter your late wife had about transferring the mortgage, point out you have maintained repayments and ask them to consider transferring mortgage to yourself

[Gprit]

Re: Interest only Mortgage repayment

Thanks for all the comments. As suggested I am attempting to discuss options with Rooftop. All the above questions are 'in case' it goes sour.
Rooftop won't transfer the mortgage to me for the same reason J P Morgan wouldn't - they class it as new lending and they no longer take on new mortgage business. If this had happened then yes I would still be selling now.
Also looking at a mortgage elsewhere (I now again have an excellent credit rating), but it is limited as I am now 70, it would need to be interest only PLUS I am finding lenders don't want to give a mortgage when the property is for sale.

[jaguarsuk]

Re: Interest only Mortgage repayment

I think you need to shop around and see if there are options for a Bridging Loan, on the basis of the equity in the property that might be the solution as opposed to the mortgage given age restrictions.

Hopefully the lender will just agree to wait for sale and it won't be needed, but if you can get an agreement in principal for a BL you have a back up plan.