Will Pepper appoint a Receiver?

J

January25

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Reviving this old thread. Asking for a friend who has several rental properties with pepper. They were interest only loans over 20 years. Several mortgage terms ended in summer 2025. But the mortgage payments have continued at the same lowish rate. Properties values are in line with amount due which is well over a million. Owner has to pay CGT on them and has some revenue arrears to settle on rental income. Other costs will be legal and auctioneers. Pepper have been slow to move on the properties. Now one house has had the tenants leave voluntarily, but owner would rather relet for a year to keep rental income stream going. Obviously wants to avoid receivership. How long before receivership process could kick in ? He hasn’t even had a meeting with Pepper yet. They seem to be not that bothered perhaps as market values are ok. Just wondering about the typical expected timescale ? Could he get another year of letting before he has to issue evictions or can receivership procedure land without warning ?
 
If Pepper appoints Receivers, he will lose any equity he has and end up owing a lot of money to Pepper.

Assuming he is otherwise solvent, he should seek to extricate himself from these while he can.

But he sounds financially irresponsible from the brief profile you have given, so he will probably just rent again and then find he can't ever sell that property as he will be classified as a large landlord.
 
He should sell the house that tenants are vacating and not be considering renting it again.
He should also have had a plan for paying back the money to the bank after the mortgage terms ended. I am surprised Pepper have not asked for this.
As Brendan says, he seems financially irresponsible. How much is owed to Revenue in arrears income tax?
 
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This is absolutely a case for a Moneymakeover

For example, does he own his own home? Has he equity in it?

If his overall net worth is negative, he might be better off holding on to all the properties as further rises might get him out of his negative net worth. When it comes to insolvency, you might as well be killed for a sheep as a lamb. But then if Pepper appoint Receivers, he would lose control and lose the rental income

If he has equity in his home and has positive net worth, he should probably manage his way out of his investments.
 
Yes he owns his own home. He has had multiple rental properties for many years on interest only. Pepper have not done anything to get him to resolve the mortgages even though it’s 12 months since the mortgage terms expired. He is guessing that they are happy enough to let them run as he has never missed a payment. I agree he should sell now while they are at high values. Who knows what a recession should bring. But he is slightly blinded by losing rental income and wants not to miss out or any further rises in value. Perhaps Pepper are not in a rush as there is no negative equity after the last few years of rises ? I’m not sure what he owes revenue but it’s on a payment plan. Surely they would not rush into receivership without negotiations or a meeting first ?
 
Just to clarify Brendan you said he will lose any equity he has. Surely this is not the case? I understand he would lose control over how they are sold. But surely Pepper would try to get the best price. It’s the owners intention to clean and paint etc before selling.
 
January25 said:
But surely Pepper would try to get the best price.
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The Receiver will be in no hurry at all and will rack up fees.
They will leave the property empty and will appoint a security company to look after it which will rack up fees.
And when people hear that it's a Receivership sale, they will expect and get a discount on the market value.

Your friend is best placed to maximise the value while he is in control.
 
once it is in positive equity pepper are in the driving seat how old is he what plans has he in place to clear mortgages I don't know but I expect if he waits until pepper contact him it will be too late to come to an agreement,
 
Thanks Brendan. To your knowledge can the receiver be appointed now. Before any meeting ? What’s the usual timescale approximate. I thought it might take several years of failed negotiations to reach that point. He will negotiate but is in no rush at present.
 
He is early 60s. He intends to negotiate and to hold onto at least one in retirement. Is not in good employment to get refinance.
 
Brendan Burgess said:
The Receiver will be in no hurry at all and will rack up fees.
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It could also be sold very quick and be offered to tenants who now have lots of schemes in place to help them buy it from pepper/Receiver,so they are not homeless
 
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January25 said:
To your knowledge can the receiver be appointed now. Before any meeting ? What’s the usual timescale approximate.
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I am not an expert at all in the area, but there have been lots of reports of people being shocked by the appointment of Receivers suddenly and without notice.

He is in arrears. The loan term is finished. What more notice does he want?
 
January25 said:
What’s the usual timescale approximate. I thought it might take several years of failed negotiations to reach that point. He will negotiate but is in no rush at presen
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To quote Trump pepper hold all the cards, What negotiations are you talking about if pepper can realise the cost of mortgages outstanding he
now has vacant possession on one, I cant see him in a stronger position than at present, in fact he has been at sleep at the wheel he should have moved before the new RTB rules came into force,
 
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Yes it’s just the timescale and the procedure. He hasn’t refused to engage. But he doesn’t need any surprises either.
 
I have not cross checked I am not sure if the following is correct maybe some poster can confirm but I have been told a receiver can contact tenant for rental income while it is in receivership quite possible tenant will stop paying because he/she no longer know who the real owned is,
Again I have nothing to back this up but if I was in your friend position I would not let again I also suspect when he sells he will not be seeing any money until all is sorted seeing all mortgages are with Pepper again I could be wrong,
 
His plan is obviously to sell the one that has slightly fallen in value first. In case there is any CGT benefit down the road. But again this plan could be upset if Pepper take over the running of things. I thought if he was engaging fully then appointing a receiver might not happen. I also wondered if they would increase the interest rate as the tracker deal is over - but they haven’t.
 
January25 said:
I thought if he was engaging fully then appointing a receiver might not happen.
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It might not.
But also it might.
There really is no way of knowing.

The Pepper executive currently handling the file might be happy to keep things as they are. But a new guy might come in and have a different attitude.

If he can get out and remain solvent, that should be his objective.

If receivers are appointed, he will lose his rental income and the process will cost him potentially hundreds of thousands of euro.
 
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