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BTL Mortgage Arrears / Rent Receiver Query

Started by ddmol, October 27, 2010, 08:30:44 AM

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ddmol

Hello guys,

I find myself in a bit of a pickle and would very much appreciate some advice / guidance.  :'(

I have a rental property that is currently rented out to a tenant that has been there for some time.  The previous tenant left the property in a right state and was in arrears at a time when I had been made redundant and had very little surplus money.  Due to this the mortgage payment fell behind and the flat stayed empty.

The lender, West Brom, appointed rent receivers and the property was re let.  The arrears are now up to date and there is a surplus of approx £400 / month, after the mortgage has been paid from the rent.  The rent receivers are still managing the property and the lender has declined to pass control back to me.  This surplus is being used by the West Brom to reduce the capital amount on the mortgage - as they feel that due to property prices coming down, there is very little if any equity in the property.

I am in a position where I would like to benefit from my investment and wanted to know if they are allowed to do this - especially seeing as the mortgage is up to date and has been for some time.

Any information, advise or assistance you can give would be greatly appreciated.

Kind regards,

David