With the sharp increase in the number of repossession’s throughout England and Wales over the past year, it is vital that tenants are fully aware of their rights and what help is at hand for them.
First and foremost it’s important to point out that lenders and freeholders are fully within their legal rights to take action against you if you fail to keep up with repayments, or in the latter situation; break one or more conditions of your lease. At the same time, this action is not automatic and your lender or freeholder has to state a valid legal reason, along with following the correct procedure in order for your eviction to be initiated.
If you are threatened with a repossession order then the first thing you should do is seek help from your local housing association, advice centre or the Citizens Advice Bureau.
Although numerous accounts contradicting the fact that lenders should use repossession as a last resort are cropping up, essentially the majority of lenders will be more than eager to sort out your repayment problems, and work on implementing a new repayment plan. The options available to you at this stage will depend greatly on your personal situation and your lender will usually take into account what type of mortgage you have; how far you’re are into arrears; and the reason you have fallen into arrears.
Almost always the first indication you will have that your repayments have become problematic are by a letter you will receive from your lender. This will usually just be to inform you that you have missed one or more payments and establish how you intend to catch up on these payments; in most cases they will request that you get in contact with them either by letter or telephone.
Its vital here that you do not simply ignore letters from your lender or landlord as this will encourage them to get their solicitors involved and will show the courts your unwillingness to cooperate.
Following your first letter you will receive one stating whether or not your lender found your proposals agreeable, if not then they will usually give you 1 week to either clear your area’s or get in contact with them; with failure to comply resulting in the matter being passed onto their solicitors. It’s always better to try and resolve the situation with your lender before involving their solicitors, so again it is vital that you answer their letters or get into direct contact with them.
If you have still not taken any action then you are likely to receive a letter from your mortgage lender solicitors stating that you have 1 week to pay of all arrears or make a proposal on how you intend to do so, if you do not then they are able to start court action.
Negotiations are vital at this stage, and if your mortgages case is taken to court, then chances are they will be much more sympathetic if it is obvious that you have made an effort over the preceding months. A remortgage may be an excellent way to cover your outstanding arrears, either way it’s highly advisable you talk with an independent advisor before taking such action.
