Vulture Fund and BTL property

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music man

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Hello – just looking for some advice. Does anyone have any experience of the following.

I am a resident in N. Ireland. I have a BTL property in County Donegal.The property has been up for sale since 2014 but isn’t moving, it is currently rented out. The mortgage was in arrears a few years ago and I managed to negotiate a new payment plan. The mortgage was sold by AIB to a vulture fund as part of Project Cypress in April 2017.This is managed by Pepper/Beltany who have been in contact in the past year with regular statements. In the past month the case has been handed over to the official receiver. The tenant has received a letter telling him not to pay any more rent. Also, I have been contacted by what looks like a firm of solicitors requesting that I send personal details, accounts and details of selling agent.

My question is has anyone any experience of this and have they any advice to offer in how to deal. I am thinking of giving the tenant notice. I have recently been able to access a lump sum from my pension. My ideal aim would be to offer a settlement sum. (I had told Pepper I was considering this).

Is it too late to make an offer now that the official receiver is involved. Just not sure what the process is. I could always just walk away because I am a UK resident. Any advice appreciated.
 
No, it is not to late. Beltany will do deals. You will have to send a letter outlining your proposal to both the Receiver and Pepper who are the credit servicing firm for Beltany. Maybe no harm in sending the same letter to Beltany's solicitors. Are you willing to pay off the arrears now, or are you thinking more in line of addressing the residual balance after the sale is complete?
 
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My advice music man would be to speak to somebody with experience of dealing with the banks.
Might cost you a few quid but could be worth it
 
Before you go any further, talk to someone who knows what they're doing.

They would've valued your loan based on the underlying property and would definitely not have known about your pension. DO NOT OFFER UP THIS INFORMATION.

Talk to a pro.
 
Take Andy’s advices. Do not disclose your pension lump sum to Beltany. Agree a settlement or agree to pay off your arrears and get the receivership vacated.
 
Hello new development since my last post. The tenant is worried about double payment of rent which I would never let happen. He has contacted a tenants association which has told him to stop paying rent to me and pay rent to the receiver going forward. This seems to be perfectly legal but leaves me in an awkward situation because I had not declared that I had a tenant. I want to deal with the receiver with respect to coming to an agreement. Where does this leave me? How should I progress? Any advice would be appreciated.
 
Hello Josie100,

If the property is in Receivership, then the Tenant must pay the rent directly to the Receiver. In fact, you are best not to even engage with the tenant, as it may just confuse matters and upset the tenant.

I'm not sure who it is that you are referring to, when you say that you had not declared having a tenant - the Revenue, the Residential Tenancies Board, or the Lender. Regardless, it's up to you to put the matter right and you are not going to get any "assistance" from the Receiver in dealing with the problem, so just tackle it head on. It's better that you contact the relevant party / parties, than have them come to you at a later date.

Any proposal that you want to make needs to go in writing to the Receiver, with copy addressed to Pepper (for the attention of Beltany). I would send the proposal to both parties via registered post, so there is a record of it having been sent.

Expect to be questioned on where funding is to come from, if you are proposing some form of financial settlement. You will probably be asked to swear off a detailed net worth statement, along with statement of income. You may also be asked to have the signing of these documents witnessed by a notary public.
 
Hi Music Man can I ask what happened with your situation since as I am in the same position
 
I'd echo what has been said previously, if you don't have detailed knowledge of how these things work, pay someone who does to act for you.

It's easy to check references when trying to decide who to engage to represent you, good people are happy to put you in touch with former clients, or tell you to check them out through other channels etc.
 
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