It is always a sad moment when house repossession occurs.
The homeowner involved may have fallen on hard times. This can leave them unable to meet repayments.
Meanwhile, the mortgage lender will have finally reached a point where they feel they will never receive repayment for their loan.
But exactly how long does house repossession take? And can it be delayed? Keep reading to find out.
What is house repossession?
House repossession is a legal process for when a mortgage lender takes over ownership of a property.
It is usually decided in court and occurs because the current owner has fallen into mortgage arrears and are not making their repayments.
Homeowners do have clear rights regarding repossessions. These must be carefully considered and adhered to throughout the process.
The build-up to house repossession
Court hearings
The homeowner will be served with a notice for a court date, where they can make their case for why they haven’t been meeting repayments.
They could also explain why repossession would be unfair. Some examples might include:
- Errors in mortgage calculations
- Lender’s failure to fulfil their legal duties
- Mistakes in the mortgage sale process
- A child is living in the house at the time.
Court rulings
The judge will then make a ruling about the repossession.
The court might give a homeowner a repayment plan.
Or they might set a date for the homeowner to leave the property. If the homeowner fails to do so, bailiffs might arrive to forcibly evict them.
House repossession might be granted but delayed until a certain point. A common example is waiting for a child in the house to turn 18 years old.
Court appeals
Appeals are for serious cases of injustice or procedural errors.
If you are facing repossession, you need permission to appeal. It can be requested from the original judge or a senior judge.
If granted, you must file an appellant’s notice within 21 days. Appeals can result in various outcomes concerning the original decision, including:
- Upholding it
- Dismissing it
- Changing it.
How long does house repossession take?
The average house repossession time is anywhere between 6 months to one year.
Most sources say that a repossession is unlikely to happen in less than six months.
In other words, this is the fastest that it could be pushed through.
On the other end, the process could take up to one year.
What impacts the time taken for repossession?
The circumstances of the case have a significant impact on the time taken for repossession. There are usually three main stages involved:
- Notice of repossession
- Court hearing
- A date being set for repossession.
A judge will consider all relevant factors when deciding how long the homeowner has to move out.
Repossession is sometimes delayed when children live in the property. The judge deems that they have a duty of care to anyone under 18.
This delay might be until the children are set up in a suitable new home – as they cannot leave them homeless.
Some other factors that impact the time include:
- The financial situation of the homeowner
- How far behind on repayments the homeowner is
- The size of the mortgage in question
- How quickly the homeowner and lender responds
- Whether the lender has followed all legal requirements.
Can I delay a house repossession?
Yes, it is sometimes possible to delay a house repossession. This is done using an N244 form. Ask a solicitor to help you fill this out.
An N244 form in the UK can be used to ask a court to cancel an order to repossess your property.
In this instance, a judge will look at the details of your case and decide if there will be a court hearing.
The most important thing is that you complete your N244 form without any errors.
This requires you to put the correct information for all the following sections of an N244 form:
- Your details
- The capacity in which you are making the application
- Why you are making the application
- Whether you are attaching a draft order with your N244 form
- How you would like the hearing to take place
- When the hearing will take place, with which level of judge
- Who the application will be served to
- Any evidence that you will rely on
- Date and signature.
Debt relief orders
A debt relief order (DRO) is a financial relief available in England, Wales, and Northern Ireland for individuals with low debt and assets.
It provides a 12-month grace period on debt repayments and in some cases can lead to debt forgiveness. However, it can negatively impact future borrowing ability.
Advice on how to make a good case in court
Firstly, you can do other things to be viewed more favourably by a judge. For example, respond to all communications promptly and honestly.
Secondly, when you attend a court summons, have a clear repayment plan. For example, you might be able to downsize to pay off your debt.
Finally, you should also explain why your financial situation has changed, enabling you to now meet repayments when you couldn’t before.
How long can I fall into mortgage arrears before repossession?
Each lender has its own criteria for repossession.
Remember that they don’t necessarily want to repossess your house. After all, it usually costs them lots of money to do so.
Lenders may thus be reasonable and understanding for a certain period.
Most lenders will start repossession proceedings when you have missed 3 to 6 months of repayment.
They may be more lenient if you are very communicative during this time and constantly trying to improve the situation. Your behaviour could make a difference.
