I am dealing with an estate where there are a number of properties, which are being rented.
The deceased died unexpectedly in November last year and it has been extremely difficult ascertaining details of all of the assets and liabilities. We do not yet have the GoP but I am hoping to be applying soon.
Each of the properties has a mortgage (with different providers) and at least one has a second charge,
The rent has been paid to us since the deceased passed away and is intended to be used for the payment of Inheritance Tax, which needs to be paid.
There is little by way of liquid assets.
One the mortgage companies (which has a charge again four of the seven properties) has appointed a receiver to collect the rents to offset against the arrears of mortgage that have accumulated since the deceased passed away.
My view has been that I cannot make payments to this mortgage company in priority to the other creditors of the estate (particularly given that one of those is HMRC!) and that, once the GoP has been issued, we will look to redeem the mortgage as soon as possible.
The receiver is recommending to the lender that they seek vacant possession and repossess the properties. I am trying to persuade them otherwise. My question is, should I be making payments to the lender to try to stop them repossession the properties, or are my hands tied?
Any guidance would be greatly appreciated.
Martyn Dixon
Harold Bell & Co.