Company tells my tenant to pay them!

[Nicegirl1]

Anyone had experience of Platform Funding buy to let mortgage? I'm in arrears and will be able to pay these off next week. Platform have applied for a posession order but a few weeks ago they appointed a company as receiver for the rent before they get posession. This company wrote to my tenant and insisted he pay them and not my letteing agent. I've looked at Platform T&Cs and this is in there but is it legal? Surely I'm still the owner of the property and entitled to the rent? I don't know where to start with this, any ideas anyone please?

[jaocheu]

No you are not the owner of the property. Platform have a charge on the property in the land register. They are empowered to do many reasonable things, such as demand repairs on the property if you neglect it and insure it (at your expense) if you fail to do it adequately.

 

Once upon a time all motgages were by demise, meaning the property stayed in the lenders name until you finished paying it. This meant if you fell into arrears they could simply kick you out. Nowadays mortgages are by charge, which means a lender must go to court to get you out and courts are there to broker a compromise and do everything to keep you in your home. However while no-longer all powerful lenders still have considerable control over the property.

 

If you have a tenant and they are receiving rent from the tenant and presumably the rent covers the interest of the mortage, I can't see the judge giving Platform possession of the property. How much arrears are you in?