House Purchase
House Purchase Department:
The First Five Years
Miscellaneous Extracts from Committee Minutes
June 20th 1920: Leasing of Mortgaged Property - Carter
A letter was received from Messrs Lane Clutterbuck & Co applying for permission for their Client (Mrs L Carter) to lease to another party certain shopping, portion of premises Nos 834 & 836 Stratford Road, in respect of which she is Mortgagor to the Bank.
The request was acceded to, subject to the terms of the Lease referred to being to the satisfaction of the Town Clerk.
October 4th 1920: Minute 617
The Manager reported that Mr Thomas had applied for permission to sell property, No 103 Southam Road, Hall Green, in respect of which he was Mortgagor to the Bank.
RESOLVED:- That the application be acceded to, and that on the outstanding amount due being paid over, the Town Clerk be instructed to prepare and affix the Corporate Seal to the necessary vacating Receipt discharging the Mortgage on the property in question.
October 25th 1920: Discharges - House Purchase Mortgages
The Town Clerk reported as follows:
In view of the increasing numbers of these Mortgages which are being paid off, I should be glad if the Committee would pass a general resolution authorising me from time to time to affix the Corporate Seal to the necessary Vacating Receipts discharging such Mortgages on settlement of the Mortgagor's liability to the Bank. This will obviate the necessity of obtaining the Committee's instructions to seal in individual cases.
RESOLVED (No 635):- That the Town Clerk be and he is hereby authorised to affix the Corporate Seal from time to time to the necessary vacating Receipts discharging House Purchase Mortgages on settlement of the Mortgagor's liability to the Bank
February 21st 1921: Failure to make Repayments - Lear
Mr Lear, a Mortgagor to the Bank in respect of 66-68 Stanmore Road, Edgbaston is now serving a term of imprisonment for embezzlement, and no repayments have been made for over 3 months. Efforts have been made by Mr Lear's representatives to sell the property, but without success. Lloyds Bank have intimated that they hold a second mortgage on the property and ask to be notified before any disposal of the property by the Bank takes place.
Your Sub-Committee recommend that the Town Clerk be instructed to prepare and seal a Deed of Appointment of Mr Frank Wilde as Receiver on behalf of the Bank. In the meantime Mr Wilde has been authorised to give notice to the tenants that the Bank proposes to collect the rents.
April 18th 1921: Advances on two or more houses
Your Sub-Committee have considered the desirability of making advances on two or more houses. They realise that unavoidable circumstances sometimes arise whereby it is necessary for an applicant to acquire two houses in order to obtain possession of the one required and they see no reason to depart from their present practice of considering such cases on their merits.
June 20th 1921: Instalments Overdue
Your Sub-Committee are of opinion that in several cases where instalments are in arrear, a useful purpose would be served by notifying the Mortgagors. They therefore recommend your Committee to instruct that subject to the discretion of the Manager, intimation be sent to Mortgagors when repayments are overdue.
RESOLVED (854):- That, subject to the discretion of the Manager, intimation be sent to Mortgagors when House Purchase repayments are overdue.
July 18th 1921: Application from Selly Oak Colleges
Your Sub-Committee have had before them an application from Selly Oak Colleges per Messrs Pinsent & Co, Solicitors asking if the Bank would consent to an arrangement whereby advances could be made in the first instance to teachers on the College Staff, who would later transfer their mortgages to the College Trustees.
Your Sub-Committee were of opinion that the course indicated would not be in compliance with the Act and Regulations relating to the Bank. They accordingly instructed the Manager to inform Messrs Pinsent & Co, that the power of the Bank to make advances is limited to facilitating the purchase of dwellinghouses by depositors and that the request could not therefore be acceded to.
July 18th 1921: Leasing of Mortgaged Property - Left
A letter was received from Messrs Newey & Sons, Solicitors, on behalf of their Client, Mr J Left, to whom an advance was recently authorised in respect of property, 223 Aston Lane, Perry Barr. Messrs Newey & Sons intimated that their client desired to grant an Occupation Lease of the premises for a term of 7 years and enclosed a draft for approval. Your Sub-Committee have referred the matter to the Town Clerk and the Manager to ascertain the circumstances of the case, and if they are of the opinion that consent should be granted it will be necessary for the authority of your Committee to be obtained to the affixing of the Corporate Seal to the requisite document.
NOTE The Chairman (Mr Councillor Appleby) has since consented as a matter of urgency to the application of Messrs Newey & Sons being acceded to.
In this connection a similar authority will be required in the case of Mrs L Carter who, as reported to your Committee at their last meeting, was granted permission to lease premises 834 Stratford Road, Sparkhill in respect of which she is Mortgagor to the Bank.
The Town Clerk has now approved the draft Lease, and your Sub-Committee recommend that he is authorised to enter into and affix the Corporate Seal to the requisite document in this matter.
October 16th 1922: Cheques for House Purchase Advances
With a view to effecting economy in both time and labour in drawing the necessary cheques to meet the advances arranged, your Sub-Committee recommend that an account be opened in the name of the Manager at the London Joint City and Midland Bank to be used solely for House Purchase Advances, and that the sum of 10,000 be transferred thereto from the funds of the Bank, the Chairman of the General Committee to make the necessary arrangements with the Chairman of the Finance Committee.
March 19th 1923: Period for which advances should be granted
Your Sub-Committee have had before them several instances of borrowers who have been unable owing to various reasons such as unemployment, illness etc, to keep up their repayments. In several of these cases advances were applied for and granted for a short period of years only, and it appears that had the advances been granted for the full period allowed by the Rules these borrowers would not at present be in arrear.
Your Sub-Committee are of opinion that future advances should be made where the Valuer's Report so warrants for the full period allowable, and they recommend your Committee to give instructions accordingly.
(General Committee Resolution No: 1380
RESOLVED:- That House Purchase advances be granted in future for the full period allowed under the rules in approved cases, ie freehold houses or leasehold houses having not less than 50 years unexpired.)
October 15th 1923: Advances on Corporation Houses, built under 1922 Scheme
Your Sub-Committee report that numerous applications have been received from prospective purchasers of Corporation houses mainly on the Farcroft Estate, Handsworth. It has not, however, been possible to complete the mortgages in these cases owing to the delay which has occurred in fixing the selling price of the houses.
Your Sub-Committee are of opinion that in view of the urgent need for possession of these houses, and the public feeling on the matter, an announcement should be made through the press showing the position so far as the Corporation is concerned, and they have directed the Chairman of the General Committee and the General Manager to ascertain the views of the Town Clerk as to the desirability of publishing a statement on the following lines:
General Committee: With reference to the .... report relating to advances on Corporation houses built under the 1922 Scheme, the Town Clerk stated that, in his view, any announcements relating to the selling price of the houses referred to would be premature until the outstanding difficulties regarding the fixing of the prices had been cleared up.
RESOLVED (1538):- That the publishing of a statement on the lines proposed in the foregoing report be deferred until such time as the outstanding difficulties with regard to the fixing of the selling price of the houses referred to have been settled.
October 20th 1924: 41 Cathcart Street, Vauxhall
A loan was granted on this property to Mr S Weston in January 1922; and as he did not make his repayments in accordance with the Mortgage Deed, a Receiver was appointed on the 15th August 1922.
Mr and Mrs Ernest H Butlin have been the tenants of this property for some considerable time, and have paid regularly to Mr Wilde, the Receiver, the statutory rent of 9/2d per week, which has been credited to the account, and against which account all outgoings are charged. The loan was originally for 100, and at the present time the mortgage stands at 90.
There is a second mortgage on this property to the extent of 95, Messrs Clarke and Blanchard being the mortgagees.
Mr Butlin has produced a letter signed by Mr Weston and dated the 10th September 1923, saying that he was willing to turn over the property to Mr Butlin as he was leaving the country. Mr Butlin puts forward the proposal that he should take over the mortgage; and if the Committee are agreeable, he would be prepared to pay down a sum of 20 and future payments of 10/-d per week, as well as to pay all the rates and outgoings; but he stipulates that he will have nothing to do with the second mortgagees.
The Town Clerk has advised that so long as the statutory power of sale has arisen owing to the instalments under the Mortgage being in arrear for three months, the Corporation are entitled to sell the property by auction or private treaty on such terms as to price as they may please. Any balance left after payment of costs of sale and the principal money and interest, should be held in trust for the second mortgagees and the original borrower. It would, of course, be advisable, before exercising the power of sale, to notify the second mortgagees so that they might have an opportunity of taking over the Bank Mortgage. If, however, the second mortgagees did not avail themselves of the opportunity, the Corporation could sell to Mr Butlin at an agreed price, and the premises might be re-mortgaged to the Corporation if desired.
Your Sub-Committee recommend that the second mortgagees be communicated with accordingly and in the event of their not being willing to take over the Bank Mortgage the necessary steps be taken to sell the property to Mr Butlin on the lines above mentioned.
(General Committee Resolution No: 1883
RESOLVED:- That with regard to property No 41 Cathcart Street, Vauxhall, the second Mortgagees be notified of the proposal to sell the same, and, in the event of their unwillingness to take over the Bank Mortgage, the necessary steps be taken to sell the property to Mr Butlin on the lines mentioned in the foregoing report.)