HOUSE PURCHASE DEPARTMENT:
ADMINISTRATION & POLICY
(continued)
Bank Committee: December 17th 1928
With reference to the paragraph in the [Report of the House Purchase Sub-Committee] relating to No 34, Redthorn Grove, Stechford; the General Manager reported that an opportunity had arisen of letting the house at a rental of £50 per annum, plus rates and internal repairs.
3281 RESOLVED:- That the General Manager be accordingly instructed to let the property No 34, Redthorn Grove, Stechford, on the terms above-mentioned.
Bank Committee: April 15th 1929
3405 The following report of the House Purchase Sub-Committee was presented:
Your Sub-Committee have to report that the keys in respect
of 13, 23 and 24 Redthorn Grove have been handed in by the mortgagors, and that in two of the three cases the whereabouts of the mortgagors
cannot as yet be traced. In the case of No 13 the arrears amount to £6. 18. 0.; No 23 to £13. 5. 4d., and No 34 to £42. 6. 9d. Endeavours
to dispose of one of these properties by way of sale by auction were unsuccessful, and it is unlikely that any of them can be so disposed
of without loss to the Bank. Mr A Ford is financially interested in these properties and the General Manager has, with the approval
of your Sub-Committee, offered to sell the properties to Mr Ford at the amounts outstanding and to grant to him mortgages equal to
such amounts. Mr Ford has expressed his willingness to purchase at £400, £410, and £410 for the three houses respectively, but as
these sums are much below the amounts outstanding on the respective mortgages your Sub-Committee have instructed the General Manager
to continue his negotiations with Mr Ford or his Solicitors with a view to the original offer made by the General Manager being the
basis of the sale and remortgage.
With reference to the foregoing report relating to houses in Redthorn Grove, the General Manager submitted the following report:
Houses in Redthorn Grove.
The General Manager reports that Mr Ford, through his Solicitors. has agreed to discharge the Bank's mortgages in respect of Nos. 13 and 23 Redthorn Grove, on the understanding that advances are made to him in each case for the amount outstanding, and that he is not put to any legal expense in connection with the discharge of the existing mortgages and the creation of new mortgages.
With regard to No 34 Redthorn Grove, Mr Ford declines to discharge this mortgage unless the arrears are cleared . The mortgagor, I understand, is residing in Ireland and has no intention of returning. I have seen the father and mother and explained that they are responsible for the payments equally with their son and that the Bank would require them to make good the arrears. The father is out of work and has been for some time, and the mother states she has very little income from her dressmaking business, but on the other hand, they are living in a house in Belgrave Road, Balsall Heath, parts of which are let off in lodgings. The father saw me on Saturday, and has promised to see me again today at 2:30 with proposals for discharging the arrears.
3410 RESOLVED:- That the arrangements made for the mortgages in respect of Nos 13 and 23, Redthorn Grove to be discharged by Mr Ford the second Mortgagee on the understanding that the Bank are to make advances to him in each case for the amounts outstanding under the existing mortgages, and that he is not to be put to any legal expenses in connection with such arrangements, be confirmed; and that the Town Clerk and General Manager be authorised and instructed to take any necessary steps accordingly.
3411 RESOLVED:- That the question of the disposal of No 34, Redthorn Grove, be referred to the House Purchase Sub-Committee for further consideration and report, the General Manager in the meantime to endeavour to arrange for payments to be made by the Mortgagor or his parents on the lines indicated in the foregoing report.
Bank Committee: May 15th 1929
34, Redthorn Grove, Stechford.
Your Sub-Committee report that arrangements have been made for the sale of the above property to Mr Ford, the second Mortgagee, at the amount outstanding on the existing Mortgage; namely, £473. 4. 6., subject to Mr Ford being granted a new Mortgage for a similar amount free of any legal expenses in connection therewith, and your Sub-Committee recommend that the proposal be approved.
3441 RESOLVED:- That the arrangements made for the sale of property 34, Redthorn Grove, Stechford, to the second mortgagee (Mr Ford) at the amount outstanding on the existing mortgage, on the understanding that Mr Ford is granted a new mortgage for a similar amount free of any legal expenses in connection therewith, be approved and that the Town Clerk be instructed to prepare and affix the Corporate Seal to any necessary document.
On Minute 3410 (13 and 23 Redthorn Grove) the following report of the Town Clerk with reference to the arrangements arrived at with the second mortgagee (Mr A Ford) was received:
May 14th 1929
Minute No 3410
re 13, Redthorn Grove Stechford (S F Newbold)
re 23, Redthorn Grove Stechford (A R Kay)
In accordance with the above Minute, I have arranged with the Solicitors for Mr Alfred Ford to effect the transaction in each case by his executing a Collateral Security in favour of the Corporation. Mr Ford, after acknowledging that he is in possession of the property as Second Mortgagee, will covenant to repay the principal and interest now due by monthly instalments spread over a new period of twenty years; interest at the rate of £5 p.c.p.a. is also to be paid by him on the total amount now due.
By this method the existing Mortgage will remain in force, so that the original Borrower in each case will still be liable on their respective covenants and the Corporation will also have the additional security given by Mr Ford.
I shall, accordingly, be glad of a Minute confirming my action and authorising me to affix the Corporation's seal to the two Deeds.
3419 RESOLVED:- That the report be approved; that the action taken by the Town Clerk in arranging for the execution by Mr Ford of a collateral security in favour of the Corporation in each case be confirmed and that the Town Clerk be authorised to affix the Corporate Seal to the two deeds.
Bank Committee: June 17th 1929
On Minute No 3441 (No 34 Redthorn Grove, Stechford) the Town Clerk presented the following report as to the completion of the sale of this property to Mr A Ford:
June 14th 1929
Minute No 3441
re 34, Redthorn Grove, Stechford,
J H Pearson.
In accordance with the above Minute; I have completed the sale of the above property to Mr Alfred Ford for the sum of £473 as well as the Mortgage to him for the same amount. The small balance outstanding on the previous Mortgage by the above-named was paid in cash by Mr Ford, who also provided all the stamp duties in connection with the transactions.
I accordingly, ask that the above Minute be discharged.
3432 RESOLVED:- That Minute No 3441 be discharged.
The Committee were informed that the Mortgagor of No 112 Lyttlelton Road, Stechford, had fallen into arrear, and that the General Manager had been in communication with Mr Ford, who had undertaken to take over the property in a similar manner to that adopted in regard to Nos 13, 23 and 34 Redthorn Grove, Stechford.
It was therefore:
3480 RESOLVED:- That the Town Clerk be authorised and instructed to institute such proceedings as may be necessary for recovery of the amounts owing to the Bank and to obtain possession of the property No 112 Lyttelton Road, Stechford, with the object of the sale thereof to Mr Ford at the amount outstanding on the existing Mortgage, on the understanding that Mr Ford is granted a new Mortgage for a similar amount, free of any legal expenses in connection therewith; and that the Town Clerk be instructed to prepare and affix the Corporate Seal to any necessary documents.
Bank Committee: February 17th 1930
3680 The following report of the House Purchase Sub-Committee was presented:
Procedure in regard to House Purchase Advances.
Your Sub-Committee have given careful consideration to a report by the General Manager, after consultation with the Town Clerk, in regard to the present procedure adopted in dealing with certain applications, and the following observations and recommendations are now submitted for consideration by your Committee:
1. Combined Shops and Dwellinghouses.
On the 18th April, 1921, the Bank Committee passed a resolution that the Valuer should be instructed to indicate in cases of combined shops and dwellinghouses, the value of the property as a "Dwelling". Accordingly in every case where a shop formed part of the property, the Valuer has only taken into account the value of the dwellinghouse, ignoring any value that may attach to the shop premises. The result of this practice has been to limit the amount which could be advances, with the consequence that applicants have gone elsewhere.
Your Sub-Committee consider it desirable that the Minute in question (No 796) should now be rescinded, and that in future the Valuer should value the premises as a whole, and that advances should be made in accordance with the Regulations on the basis of such valuation. The Town Clerk does not see any objection to such a course, providing the major portion of the property is to be used as a dwellinghouse.
2. Residential Qualification.
On the 19th December, 1921, and the 19th March, 1923, your Committee passed resolutions to the effect that advances shall be confined to cases where the applicant resides in the property or intends to do so. Your Sub-Committee feel that so long as the property constitutes a satisfactory security, it is not necessary for the Bank to make any distinction as to whether the Town Clerk has been consulted on this matter and agrees that there is nothing in the Act or Regulations requiring a residential qualification. The removal of the restriction would be helpful in cases where an applicant desires to purchase the house as a residence for some member of his family, or for an employee, or where a professional man desires to put a caretaker in the premises, and in other cases of a like nature.
Your Sub-Committee, therefore, recommend that Minute No 988 passed on December 19th 1921, and Minute No 1379 passed on March 19th 1923, be rescinded, and that the restriction in question be no longer imposed.
3. Additional Advances on Properties already Mortgaged.
From time to time applications are received for additional advances to enable Mortgagors to carry out desirable improvements to the property, such as the building of a garage, electric light installation, improvement of hot water system, etc. The Town Clerk, who has been consulted, sees no objection to additional advances being granted in such cases, providing the total amount advanced does not exceed the sum which might be advanced in accordance with the Regulations.
In a like manner applications are frequently received from Mortgagors who desire to purchase an additional strip of land so as to preserve or extend the amenities of the mortgaged property. For example, in some cases it is desired to secure a right of way or enlarge a garden. The Town Clerk has expressed the view that the Bank might reasonably make such an advance within the limits prescribed by the Regulations, providing the additional land adjoined the mortgaged premises and could be properly described as forming part and parcel of the same.
Your Sub-Committee therefore recommend that authority be given for additional advances to be made in cases as above indicated.
4. Advances on property Mortgaged to Building Societies, etc.
Repeated applications are made to the Bank to take over existing Mortgages with Building Societies and others, but the Town Clerk has advised that the Regulations as at present drawn preclude arrangements being made to take over such mortgages, the applicant having already purchased or acquired the property. Inasmuch, however, as the Bank is at present seeking amendments to several of the Regulations, it is recommended that application be made to the Treasury for approval to the necessary words being inserted in the Regulations so as to allow the Bank to act in these matters in the same way as Building Societies are enabled to do. They therefore ask that the Town Clerk, in consultation with the Chairman and the General Manager, be directed to take steps accordingly.
3684 RESOLVED:- That Minute No 796 be rescinded; that the General Manager be directed to instruct the Valuer to value combined shops and dwellinghouses as a whole where the major portion of the property is to be used as a dwellinghouse; and that advances be made thereon in accordance with the Regulations on the basis of such valuation.
3685 RESOLVED:- That Minutes Nos 988 and 1379 be rescinded, and that the requirement as to the Mortgagor residing or intending to reside in the property be no longer imposed.
3686 RESOLVED:- That the principle of granting additional advances on properties already mortgaged to the Bank be approved on the lines indicated in the foregoing Report and in accordance with the Regulations.
3687 RESOLVED:- That the Town Clerk, in consultation with the Chairman and General Manager, be instructed to endeavour to secure the approval of HM Treasury to words being inserted in the Regulations enabling the Bank to act in a similar manner to certain Building Societies in regard to taking over existing mortgages on properties and like matters.
Bank Committee: March 17th 1930
3713 The following report of the House Purchase Sub-Committee was presented:
20 Redthorn Grove, Stechford.
The Mortgagor of this property is in arrear and has not complied with his undertaking to make regular weekly payments of £1. 2. 0. in respect of the instalments due to the Bank. It is understood that Mr H Ford (Builder) is interested in the property, and the General Manager has been directed to inform him that unless he is prepared to take over the mortgage, proceedings for possession of the property will be instituted. Your Sub-Committee recommend that in the event of no satisfactory reply being received before the meeting of your Committee, the Town Clerk be instructed to take action for recovery of arrears and to obtain possession of the property.
3718 RESOLVED:- That in the case of the property, No 20 Redthorn Grove, Stechford, no satisfactory arrangements having been made by Mr Ford (Builder) to take over the property, the Town Clerk be instructed to institute any necessary proceedings for the recovery of the amount owing to the Bank, and obtain possession of the property.
Bank Committee: May 19th 1930
3774 RESOLVED:- That the Bank having obtained possession of the property No 20, Redthorn Grove, Stechford, the Town Clerk be instructed to prepare and affix the Corporate Seal to a Deed of Collateral Security with Mr Ford, the second Mortgagee, for the amount outstanding under the Bank's Mortgage, so that Mr Ford will be responsible for future payments to the Bank, such payments to be spread over a period of 20 years, it being understood that Mr Ford is to be put to no legal expenses in the matter so far as the Bank is concerned.
Report to the City Council re Year Ended March 31st 1930: June 3rd 1930
Statistics re Loans on Municipal houses:
|
Year ended March 31st |
No of Mortgages arranged |
Amount Advanced (£) |
|
1924 |
158 |
41,595 |
|
1925 |
428 |
118,585 |
|
1926 |
820 |
269,262 |
|
1927 |
1,052 |
370,671 |
|
1928 |
358 |
119,843 |
|
1929 |
213 |
70,464 |
|
1930 |
331 |
109,257 |
|
|
3,360 |
1,099,677 |
The liability of the Bank in respect of loans on municipal houses extends to 80 per cent of the valuation, the balance of the loan being found by the Bank on the guarantee of the Finance Committee in accordance with the scheme for sale of houses adopted by the Council. The extent of the liability of the Finance Committee at the end of the financial year amounted to £160,051, but up to the present in no case has it been necessary to take advantage of the guarantee.
The monthly repayments under the terms of the mortgage has again been maintained at a satisfactory level, and only in a few cases has it been necessary to take firm measures in order to recover the amount due.
The number of advances on municipal houses is restricted by the percentage of houses for sale fixed by the Council, viz, 33? per cent in the case of parlour type and 10 per cent in the case of non-parlour type, although your Committee are in a position to meet additional applications.
During the year 8 Progressive Mortgages arranged by the Public Works and Town Planning Committee have been converted into Bank Mortgages; and at the end of the year the Bank was acting for the Finance Committee in the collection of repayments in respect of 30 Progressive Mortgages.
Report of the Town Clerk: July 24th 1930
Minute No 3775
20 Redthorn Grove, Stechford (E Dauncey)
In accordance with the above Minute, Bank Deed of Collateral Security in respect of the Mortgage on the above house has now been executed by Mr Alfred Ford, who has also provided the necessary stamp duties.
I, accordingly, ask that the above Minute be discharged.