NAME: Mr B
ARREARS: £128,000 (full mortgage balance)
TYPE OF CASE: Expired Term – Eviction
Time Available: Eviction date pending.
Previous History: Mr B did not realise the consequences of not having a repayment vehicle when the mortgage expired. He was under the impression that the mortgage would simply continue on an interest-only basis, as he could afford the payments into retirement. Sadly, after the passing of his late wife, Mr B ignored his position and his Lenders threats to start possession proceeding for some time and did not attend his initial court date.
The court had no choice but to award possession to his Lender as a result of his non-attendance. The court ordered a 28-day possession order and had informed Mr B they had applied to enforce it with an application for an eviction notice having already been made.
This woke Mr B up to the severity of the situation, so contacted HMS for help.
Case Won? YES
We talked to Mr B at length about his situation to establish the best way forward. Mr B did not wish to sell his home, having lived there for over 25 years with his late wife. We discussed the viability of Lifetime Mortgage with Mr B and arranged a specialist qualified broker to discuss a new mortgage independently. Mr B chose this course of action, which enabled us to negotiate with his Lender, who ignored the evidence of the loan and proceeded with the eviction.
We decided against the action of making an application to vary the court order, as this is more costly and not as definitive in terms of timing. We, therefore, decided to wait for the eviction order and defend it the moment it arrived.
An N244 Application was submitted to the County Court to suspend the eviction notice while the refinance was offered and completed. Whilst there are very few legal grounds to support an application when the term has expired, our expertise in appealing to the Judge proved successful and Mr B was awarded a 2-month extension.
Having used a professional broker that we have a working relationship with enabled us to provide the correct confirmation to the court to support the application and convince the Judge. The loan was actually completed within 5 weeks so no further recourse to court was required.
Testimonial of Mr B
I just want you guys to know I am eternally grateful for your help. I really had my head in the clouds while dealing with my grief and I am not sure how I would have coped if I had lost our home too. I am sat at my kitchen table and can scarcely believe how different I feel already. Knowing I never have to leave my home unless I choose to is very comforting.
We are seeing a significant increase in cases where the term has expired on a mortgage. An outstanding balance, due in main to them being Interest Only based. The biggest difficulty in defending a case with an expired term is that there is no longer a contract in place and there is very little legal footing with which to defend your case. Ultimately there HAS to be a SOLUTION in place. There is no obligation on your lender to extend the term.
We will be able to advise you on your options and what methods will actually make a difference to your case and create a solution.