Stand Up and Protect Your Income Stream. Claire Manton AIRPM

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1 Stand Up and Protect Your Income Stream Claire Manton AIRPM

2 WE RE AIMING TO COVER:- Getting it right at the beginning The basics of income recovery Help people help themselves When it all goes wrong Useful hints and tips for resales

3 Getting it right at the beginning Make sure they can afford it. Home owners need to remember Rent and service charges do increase and are likely to every year Interest rates are low but will increase What maintenance will they have to do Utilities Council Tax

4 Getting it right at the beginning Collect the first month s charges on completion Completed Direct Debit form Get a correspondence address Get addresses and contact numbers

5 Getting it right at the beginning Get all your long term agreements in place Make your service charge as robust as possible Good Sinking Fund

6 The basics of income recovery Check what your leases say What are the payment terms In Advance or Arrears Choose how you want to collect

7 The basics of income recovery Don t waste time! Use all the communication tools available Don t rely on lender payments Do what you say you will

8 The basics of income recovery Interest on debt? Should you? Why not? Remind them what s at stake Your home is at risk if you do not keep your payments up to date. It could result in the loss of your home with no compensation, and you would still have to pay your mortgage.

9 The basics of income recovery Instalments End of the current financial year or 6 months Set a minimum instalments of 50 a month. Anything different - income and expenditure proof Not for buy to let landlords

10 The basics of income recovery Basic Procedure Within 7 days call, or write Within 14 days write Within 21 days threat of NOSP or CCJ (precursor to forfeiture) Within 28 days NOSP or CCJ

11 Help people to help themselves Signpost Externally LEASE, CAB, Consumer Credit Counselling Service, Solicitors, StepChange, National Debtline Benefits Online benefits checkers, benefit cap calculator In-house Welfare Benefits Advisors

12 When it all goes wrong

13 When it all goes wrong The legal routes available Housing Act 1988 (for shared ownership leases granted on or after 15 January 1989) The Law of Property Act 1925 (100% leasehold and shared ownership leases granted before 15 January 1989) County Court Judgments or Money Claims Online (shared owners, leasehold and freehold)

14 When it all goes wrong

15 When it all goes wrong The problems with using the legal route. For leaseholders you aren t able to forfeit a lease where they owe less than 350 or the debt is less than three years old. Shared owners could owe just one month arrears or a small amount compared to the share they own

16 When it all goes wrong County Court Judgments (CCJ).

17 County Court Judgements Max Claim - 10,000. Non-response - Judgment by default. Not necessarily a hearing Pay debt within one month no affect to credit rating.

18 County Court Judgements The process 1. Warn the home owner 2. Use MCOL your company can register to use the service 3. Add the issue fee for the CCJ to their legal costs account. 4. Confirmation from the Court Service 5. No response - judgment by default.

19 County Court Judgements What if they respond to the claim? No judgment yet If they pay - nothing further need happen. Pay in instalments They must always pay you, not the Court.

20 County Court Judgements You ve got a CCJ so what next? Enforce your judgment attachment of earning, garnishee, or a charging order. Distraint seizing goods Possession/forfeiture proceedings.

21 Housing Act 1988 Possession Proceedings Grounds for possession: - Ground 8 At the date of service of the notice and on the date of the hearing two months rent in unpaid. Ground 10 Some rent lawfully due is unpaid on the date which the proceedings begun. Ground 11 Whether or not any rent is unpaid the tenant has persistently delayed paying rent.

22 Forfeiture Law of Property Act To take legal action to recover the debt you must:- Prove the debt (CCJ, admission, FTT decision) Issue a Section 146 Notice. Issue court proceedings.

23 Possession and Forfeiture Final advice on possessions and forfeiture Forfeiture - leaseholder has 6 months to apply for relief from forfeiture.. Possession once you have possession and the bailiff warrant has been executed the property is yours. Remember TORTS notices still apply!

24 Re-sales Don t apportion your service charge accounts Always recommend a retention is held Subletting - correspondence address. Check Notices

25 Communicate Empathise Follow Up Be Consistent Satisfaction

26 Any questions? Michelle Emery, Head of Home Ownership (Income and Service Charges) Tel:

27 THANK YOU Claire Manton Home Ownership Team Leader