Which banks can appoint receivers to buy to let properties?

[Brendan Burgess]

I am reading the Expert Group on Repossession's report which summarises the position on the appointment of receivers.

Where the documentation allows it, a bank can appoint a receiver who will collect the rent and sell the property.

If the documentation does not allow it, they must apply for repossession in the usual way.

This is a very important issue for a buy to let investor to understand when deciding how to deal with the bank.

For example, Bank of Ireland is trying to kick borrowers off their tracker mortgages. I have told the borrowers to resist this. But if the Bank simply appoints a receiver, the borrower could be in much worse trouble.

[FONT=&quot]C. [/FONT][FONT=&quot] Appointment of Receivers[/FONT]
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[FONT=&quot]20[/FONT][FONT=&quot]. An alternative method of repossession, and one which is generally used in relation to BTL properties, is the appointment of a receiver. In general, mortgage documents provide that a receiver may be appointed in cases of default.[/FONT]
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[FONT=&quot]20[/FONT][FONT=&quot]. [/FONT][FONT=&quot]U[/FONT][FONT=&quot]nd[/FONT][FONT=&quot]e[/FONT][FONT=&quot]r the mortgage, a receiver appointed by the lending institution has a number of powers. They generally include—[/FONT]
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[FONT=&quot]•[/FONT][FONT=&quot] the power to take possession of and enter the property;[/FONT]
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[FONT=&quot]•[/FONT][FONT=&quot] the power to protect and insure the property;[/FONT]
[FONT=&quot] [/FONT]
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[FONT=&quot]•[/FONT][FONT=&quot] the power to let any property for a specified period and at a specified rent;[/FONT]
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[FONT=&quot]•[/FONT][FONT=&quot] the power to do other things that he or she may consider to be incidental or conducive to any of the matters or powers contained in the mortgage documentation.[/FONT]
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[FONT=&quot]22[/FONT][FONT=&quot]. The Expert Group has been informed that some mortgage documents issued by certain lending institutions have omitted the power of the receiver to sell the property. In such cases, sale of the property by the lender can only be effected through the courts system.[/FONT]

 

[thecribber]

Do you have a list of the banks which have omitted the receiver clause "?

 

[jdwex]

Perhaps there should be a guide for (the usually forgotten) tenants too.
Their original contract would have been with the landlord, is the collection of the rent by by the receiver enforceable on them without a court order?

If I was a tenant and a receiver arrived without a court order I'd probably give my notice, consider my options regarding the deposit, and leave.

 

[Bronte]

Their original contract would have been with the landlord, is the collection of the rent by by the receiver enforceable on them without a court order?

Have a look at this:

[broken link removed]

But please note that document is only an interpretation, by the banks, and cannot be relied on as being the law.

 

[UnderClass]

Do you have a list of the banks which have omitted the receiver clause "?

Did this ever get answered?

 

[robert 200]

I am trying to help a friend to hold onto his buy to let apartment as he has no pension.

He is paying A.I.B full interest and partial capital but they have threatened to appoint receivers.

On my advice he has requested deeds of mortgage and debenture documentation . What should we look for when this information arrives or will we need a solicitor to decipher same?

Thank you

 

[eirman]

In my case, I employed a solicitor - I suggest your friend does the same.

Best of luck!

 

[Pat Sorrn]

Is there a list posted anywhere here since, of the banks who have omitted the receivership clause?
I'm with PTSB and wondering if they're on the list

 

[robert 200]

Good news for you Pat , on 9th December 2015 RTE announced that PTSB could not appoint receivers - this info can be easily attained by Google

 

[Jim Stafford]

PTSB are only able to appoint rent receivers because of the way their mortgages are drafted. If they wish to sell the property they need to obtain a repossession order.

Some of the mortgages issued by other banks have similar issues.

Jim Stafford

 

[Pat Sorrn]

Thanks Robert, I had seen that but from research it seems to have been denied by them the following day.