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So there’s a lot of normality’s in terms of the way the valuation is done, and that in itself is actually a major issue because surveyor may go in and just value the property down just because they know that it’s contentious. And if there’s an issue, the property is sold at a lower price than the debt, and then they’re going to be in trouble with the bank, so they’ll have to pull in their identity and decrease their divinity price.

So there are other issues which will affect really to do it in an objective way. It’s not very objective process. That’s the point. Okay, let’s suppose the banks appointed an LPA receiver knocks on your door.

  1. What’s the normal process once the bank appoints a receiver?
  2. What do they do?
  3. How do they take or do they still have to go to court?
  4.  Is it a fast track application?
  5. Is it accelerated or is it just that you’re basically told leave the property empties the property? How does it work?

To answer those questions lets suggest you have a buy to let property you’re in the arrears, you’ll get a letter, ideally to your home address, making aware of what’s happened and that the bank is going to appoint receivers via a demand notice should you not be in a position to pay off your arrears. Once they have established you won’t be paying of the arrears, it can be the case the at the LPA receivers will attend the premises, knock on your door and attempt to hand deliver a letter of confirmation of their appointment. If nobody’s there, they’ll typically change the locks and actually take control of the property and put their own tenants in. If somebody is there, then it makes it a bit more difficult.

They may look to contact the tenants directly to collect rental payments directly and they wouldn’t really be able to change locks as such, because the tenants actually now being compliant and paying the receivers rent. But if there was an empty property, typically they would change the locks so that they’ve got control of the asset to rent it out themselves and to be able to do beings if they were going to force the sale of the property. So that would be the key measures that they would take.

How long does it take them from the first notice to take control of the property?

It is typically it’s a five to ten day process. So if the notice is given and the money is not within about seven days to five days, you will receive a second letter and the receivers get appointed. And also as a point of note, there’s also a charge that’s based on additional fees that get charges, admin fee and receivership fee and a couple of other fees could amount to £2000 plus minus for appointing receivers by the bank as well. So you have to pay that money as well once the receivers are pointed. So what some people might find is that the arrears are £5,000, but the whole cost of receivership is about £5000 on top.

So if they manage to find the money from somewhere and pay the arrears off pre any type of debt being occurred on them or received as being appointed, they would be in a better position. But a lot of people don’t even realize that that can happen. So they would actually understand what LPA receivers are, what they can do and what the process is. The process is highly convoluted as well, because we’ve known people to pay off their arrears before receivers get appointed but the bank still progressed with the receivers being appointed. So there are a lot of sales tactics by the receivers which are not really well known in the industry.

Is there a way of protecting yourself from LPA receivers?

It’s not an easy process because you’re at the best of the bank banks actually giving the loan. If you have not paying your money up every month and you’re in arrears or for other reasons, once you get receivers appointed, it’s very difficult to get the receivers off your back. I mean one of the things where some people, if you’re actually living in the property and receivers get appointed, then it’s a bit more difficult for receivers to actually do what they need to do because the whole situation changes because they can’t really do much apart from taking you to court and to try and get you out the property.

So it becomes more of a frustrating process for receivers. So that’s about the only type of situation where you get a little bit more control as a borrower because you’re living in the property. It’s just a matter of time for the receivers actually go through the process of getting you taken out the property or actually still being able to actually do what they need to do.

Can you, as an organization, help stop evictions or repossessions?

YES WE CAN! we specialize in this area, so we will be able to come in at any point in time and look at a situation where we could rescue a property out of repossession. Yes. But the longer the process has gone on, and the closer they are to the wire, the more difficult.