# Which banks can appoint receivers to buy to let properties?



## Brendan Burgess (15 Jan 2014)

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]
> [FONT=&quot] [/FONT]
> [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]
> [FONT=&quot] [/FONT]
> ...


----------



## thecribber (28 Jan 2014)

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


----------



## jdwex (28 Jan 2014)

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 (28 Jan 2014)

jdwex said:


> 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 (1 Jul 2014)

thecribber said:


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



Did this ever get answered?


----------



## robert 200 (4 Sep 2017)

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 (4 Sep 2017)

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

Best of luck!


----------



## Pat Sorrn (5 Sep 2017)

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 (5 Sep 2017)

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 (6 Sep 2017)

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 (6 Sep 2017)

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


----------

