Our Brentford solicitors can help prevent your home being repossessed by your mortgage lender at Brentford County Court
How Starck Uberoi can help if your mortgage lender is threatening you with repossession at Brentford County Court
Facing property repossession is a scary time for anyone – you may be worried about losing your home and even about what it might mean for your credit score. You may feel like you have nowhere to turn and have no way to avoid it.
However, Starck Uberoi can help. We are pleased to announce we have just opened a new office in Brentford, West London (London borough of Hounslow). The offices were previously owned by Anthony Holden Crofts and Co solicitors who practised in the same building until our acquisition for 40 years. We look forward to reaching out to the local Brentford community and extending our services to clients of Brentford and surrounding areas including Kew, Chiswick, Isleworth, Richmond and Hounslow. If you are in one of these areas and are facing property repossession, contact us on 020 8840 6640 to book an appointment at our Brentford office.
Case Study – Equity Release to Prevent Repossession
In this case study our expert solicitors and mortgage advisors worked together to help our client refinance, releasing equity, to prevent the repossession of their property.
One of our recent clients owned a residential home and two Buy to Let properties. However, she was facing a £500,000 judgement debt against her from the high court, which put her at risk of losing her home. Our solicitors recommended that she used the services of Starck Uberoi Mortgages to release equity from her property if she was reluctant to sell her home.
She managed to complete an equity release against her property to pay off the £500,000 debt. As a result, she wasn’t forced into selling her Buy to Let properties which allowed her to keep that rental income. The client was delighted with the outcome as it meant she could keep all of her properties and could avoid having to declare bankruptcy. Our mortgage advisors and solicitors communicated effectively to ensure the court deadlines in securing all funds were all met.
No one should have to worry about finances during their retirement. For many property owners aged 55 or above, equity release can be an effective solution to give your finances a much-needed boost to your finances. At Starck Uberoi, we can shed some light on the facts of equity release mortgages and help you understand the different options available.
To read more about equity release see our blog The facts around equity release mortgages and how they can benefit property owners aged 55 or above.
What is property repossession?
When you take out a mortgage, your property acts as security for the loan, meaning if you fail to pay, the lender can take ownership of your home. They will often request that the homeowner is formally evicted from the property for failing to pay; in these situations, a local court such as Brentford county court will grant an order to vacate, which will then be carried out by local law enforcement. If the court agrees to evict the homeowner, the lender can then resell the property to offset the remaining balance of the unpaid mortgage.
The most common reasons why people fail to pay their mortgage are negligence and because of a loss of income/declaring bankruptcy. In the latter case, the mortgage lender will often try and negotiate a deal between them and the homeowner, such as offering to extend their mortgage term. If no deal can be reached, then they will take legal action against them.
Property repossession has an enormous detrimental effect on your credit score, making it difficult for you to get a mortgage again in the future. For this reason, it is absolutely essential you do whatever you can to keep your mortgage out of arrears.
How long does repossession take?
The time scale of which property repossession happens varies greatly depending on a number of factors. If the homeowner can negotiate a compromise with the lender, the process is much shorter than if the case has to be taken to court. This is because lenders have to do a number of things before they can take the case to court, and then they would have to wait until the local county court can find an available time and date for the hearing.
It can take up to nine months for someone to be evicted from their house following repossession – however, it will usually take much less time, so you should take action as soon as you worry you may not be able to pay your mortgage.
What does the process involve?
Here is a rough step-by-step guide detailing the property repossession process:
- Communication
– Your lender cannot repossess your home immediately. They first have to write to you to tell you how much you owe and give you brief period of time to respond. They will also clearly warn you that they will take legal action against you should you fail to communicate with them. It is vital you do not ignore your lender – this is the stage at which it is easiest to prevent your home being repossessed and by communicating with them, you may be able to avoid court action. - Legal proceedings
– If the homeowner fails to respond to the lender, legal proceedings will begin. If this happens, you will need a solicitor as we will be able to advise you on what you can do. The court will send you the date of the hearing and a copy of the claim made by the lender, and you will be required to complete and send a defence form (also called an N11R) to them. - The hearing
– When you go to court, the judge will listen to your reasons why you failed to repay your mortgage and look at any evidence you provide. They will also listen to the lender’s arguments and then decide whether your property should be repossessed. If the judge orders your property should be repossessed, an order to vacate will be issued to you and the lender will take ownership of your property. - Repossession
– You will normally have 28 days after the hearing to leave the property, but this may be upped to 56 in certain circumstances. After repossession, the mortgage lender will re-sell the property at the best price they can to earn back the money they lost. If the proceeds from the house sale do not cover the money you owe them, you will still be in debt to them and may have to pay interest on said debt.
The court local to us where this would happen is Brentford county court. They specialise in civil law rather than criminal law, meaning they have a lot of experience in dealing with housing repossession claims.
What can I do to stop my property being repossessed?
Remember, mortgage lenders do not want to repossess your home if they can help it either – going to court is expensive for everyone involved and they would still have to go to the trouble of selling the property again. There are a number of things you can do, including:
- Re-organising your finances
– The most obvious way to prevent property repossession is to not allow your mortgage to fall into arrears in the first place. If you’re worried that you might not be able to afford your mortgage payments, consider budgeting or seeking a loan (such as a bridging loan) to make sure you don’t let your mortgage fall into arrears while you look for a more long-term solution. - Communicate with your lender
– As soon as you’re worried you may not be able to pay your mortgage, you should contact your lender immediately to explain the situation to them. Lenders will be more patient with clients who give them advanced warning and they can begin negotiating a deal with you sooner, putting the repossession process to a stop before it starts. - Preparing for future payments
– In all situations, your top priority should be making sure that you can make repayments in the future. Our solicitors can help you put together a proposal for your lender outlining how you intend to repay any arrears and make future mortgage payments. After receiving your proposal, the lender has 10 days to respond. - Consider selling your home
– This may not be an available option if your house has negative equity (meaning you owe more than the house’s worth). As a last resort, selling your house before you enter rent arrears means that while you will still lose your property, you can use the sale to pay back the mortgage and will prevent your credit score being affected. You will be required to sell your property quickly to avoid sinking too far into arrears – for advice, see our blog on fast conveyancing.
How Starck Uberoi can help
Our Brentford-based team can help you should you face a repossession hearing at Brentford County Court. Starck Uberoi Solicitors and Starck Uberoi Mortgages work together under the same roof to provide our clients efficient service and expert advice regarding all their legal and mortgage matters. Our solicitors can help you prepare your defence and act for you at your hearing to prevent your home being repossessed, and if the worst should happen, our mortgage advisory team can assist you with remortgaging in the event your property is repossessed.
To find out more about property repossession services, please see our litigation and mortgages pages on our website. To book an appointment at our Brentford office please call 020 8840 6640 or email us at solicitor@starckuberoi.co.uk. Our other offices are in Ealing, Canterbury and London Victoria – give us a call to arrange an appointment there.
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