CASE STUDY: A race to possession when a borrower defaults on their financial obligations
Posted by: Westcor International
If the property is leasehold and the borrower ceases to make payments on their mortgage, not only is the lender affected, but the freeholder (or landlord) is too. This can mean a lender risks losing their security if they don't act quickly enough.
CASE STUDY: Protecting our lenders against fraudulent borrowers
Posted by: Westcor International
What triggered the claim? The Lender was approached by Mr M for a short term loan to be secured as a second charge against the Property he jointly owned with his mother, Mrs Y. Once the loan was complete, Mrs Y would relinquish her interest in the property and Mr M would become the sole owner. Mr M was living at the property with his wife and Mrs Y and confirmed that they would be letting the property out and produced a tenancy agreement to reflect this. 6 months later, Mr M defaulted on the loan. The lender discovered that not only was Mr M still living at the property, but Mrs Y alleged that she had no idea why the property was no longer in her name, that she didn't know the solicitors who had acted on her behalf and that she did not understand the documents Mr M had asked her to sign.
What are the hidden risks for lenders post purchase?
Posted by: Westcor International
Whilst all land in England and Wales is required to be registered at HMLR, following any significant change in title, only around 85% of all land in England and Wales actually is.
A valuable lesson
Posted by: Westcor International
Recent data from the Bank of England's Credit Conditions Review on Q4 of 2016 noted a return to "greater credit availability for borrowers with LTV ratios above 75%."
Stand and deliver
Posted by: Westcor International
As the government comes under increasing pressure to meet housing targets, compulsory purchase orders (CPOs) are gaining favour as a means of allowing a public body to take a property by right where it is needed as a matter of public interest.
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