Urgent help needed - NRAM repossession and consent to let refused

[Bella2010]

]Please, please can someone help? My husband has e a property which has been rented out for over eight years with no problem, until about a year ago when he was made redundant and we struggled financially. We have been trying to negotiate with NRAM, and have offered the £200 additional mortgage payment they require to clear the arrears in two years. However, about six months ago they said we did not have a consent to let and asked us for tenancy agreements etc, which we supplied, and then heard nothing more. Yesterday, when we were on the verge of making an agreement with them over the phone, to stop the repossession hearing which is next Tuesday, they told us the consent to let had been declined, and therefore we cannot make any arrangement with them. The reason we want to hold on to the flat is: one, we have a young lady tenant who has a baby, and we don't want to make her homeless, and two, our marriage is breaking up and we are trying to sell the home we live in, and then my husband wants to return to his flat. I am at my wits end, and feel like giving up on everything, as it is all getting too much for me. Can they refuse to negotiate a payment arrangement with us - I suppose they can as they say we are in breach on our mortgage conditions?

[Lea_HTH]

They can't reasonably withhold permission to let the property out - so they'd better have a very good reason to provide to the court as to why they have denied you this opportunity, if that is the only way that you are able to meet your obligations to the mortgage.

 

What they can do, and what they are entitled to do under the contract, is charge you a different interest rate as the mortgage then becomes a buy to let and not a residential mortgage. This will of course mean that they will back date that interest change to the point at which you put tenants in (and since you helpfully provided them with the tenancy agreements they'll know exactly when that was). This will therefore increase your arrears.

 

You also do not need to clear the arrears in two years - the courts have discretion to allow you to repay them over the remaining term of the mortgage, though of course if you can afford to clear them sooner then you will be expected to do so.

 

You need to attend the court hearing on Tuesday and explain everything to the judge, including the fact that your husband wants to move back into the property once your current house is sold.

 

Your tenant's situation is tenuous either way, since you state your husband wants to move back in there.

 

There is absolutely nothing to stop you continuing to pay the CMI plus something towards the arrears - they are obliged to accept it. As above, once the court agrees you can keep the property if you pay CMI plus something towards the arrears, there is a strong likelihood of NRAM increasing the interest rate they charge you.

[barbershop0]

Hi bella, it might be a good idea to get a statement together to put in the judge's file prior to the court hearing. If you arrive early at court, you can hand it in and ask for it to be be placed in the judge's file.

[Bella2010]

Thank you both for your replies - I have just phoned the court and a lady told me in a very offhand way that I can put a statement in and ask that the judge see it, but she said we should have filled in a defence form, but it is now too late. We did get sent one about six months ago when they first threatened repossession, but I didn't keep it as they dropped the repossession at that stage. I am getting very nervous about tomorrow, and don't how we will cope. They have told us that they have declined the consent to let as we have arrears, and we can't make an arrangement to clear the arrears as they have refused our consent to let. The flat has been let on and off for eight years now, and we always understood we had consent to let; this is a nightmare.

[Lea_HTH]

It's never too late to put in a defence. The court clerk is an admin person and should not be giving you information that may prevent you from filing a defence.

 

Prepare a statement explaining to the judge that you believed you had permission to let the property as this has been going on for several years. Point out that if the property continues to be let you can pay the CMI plus something towards the arrears.

 

How much are the arrears? Will you be able to clear them before the end of the term of the mortgage?

What made you think you had permission to let the property? Was there a statement or a letter from the mortgagee that led you to believe this?

[uneverdid]

I will be watching your post with interest i am also trying to get my mortgage company to allow me to rent out the house still waiting though