Home

 

 

House Purchase

Department

 

AT A MEETING OF THE BANK (HOUSE PURCHASE) SUB-COMMITTEE HELD AT THE BANK HEAD OFFICE ON MONDAY, DECEMBER 12TH, 1932 

 

PRESENT:

 

           Aldermen Barrow and Gelling,

            Councillors Cooper, Hume and Yates.

 

1180. The following Minute of the General Committee appointing the Sub-Committee for the current year was received:- 

           

4561. RESOLVED:- That the following Members be appointed the House Purchase Sub-Committee for the current municipal year, namely:- Aldermen Barrow, Sir Percival Bower, Gelling and Poole: Councillors Cooper, Daniels, Hume and Yates; and that the following powers and duties be delegated to such Sub-Committee, subject to the confirmation of this Committee where necessary:-

 

To deal with matters relating to the House Purchase Department of the Bank.   It was proposed, seconded and unanimously:-

 

1181.  RESOLVED:- That Councillor Cooper be re-elected Chairman of this Sub-Committee for the current municipal year.

(Councillor Cooper having taken the Chair)

 

1182.  The Minutes of the last meeting were read, confirmed and signed.

 

1183.  RESOLVED:- That Minutes Nos. 972/1159 and 1170 be continued.

 

1184.  On Minute No. 1179, the question of the rate of interest on advances for House Purchase mortgages was considered.

 

The Sub-Committee, after hearing the views of the City Treasurer and General Manager, were of opinion that no alteration should be made at the present time in the existing rate of interest for the following reasons:-

 

1. That, although certain Building Societies have reduced their rate of interest on new mortgage loans, the terms offered by the Municipal Bank were still such more advantageous to the mortgagor. It was pointed out that the majority of Building Societies only applied the reduction in question to new mortgages, whereas some years ago when the Municipal Bank interest was reduced from 6¼% to 5%, the lower rate was also applied to mortgages entered into at 6¼%.

 

2. That having regard to the uncertainty of the future yield from investments it was undesirable at present to vary the existing rate.

 

1185.  RESOLVED:- That the General Committee be recommended to make no alteration in the present rate of interest charged on Bank House Purchase mortgages at present.

 

The House Purchase (General) Advances Book was submitted giving particulars on pages 34 to 36 inclusive of advances in 75 cases since the last meeting of the Sub-Committee.

 

1186. RESOLVED:- That the advances made in the cases above referred to be confirmed.

 

The House Purchase (Supplemental) Advance Book was submitted giving particulars on page 12 of advances granted in 21 cases since the last meeting of the Sub-Committee and showing the extent to which such advances were guaranteed by the Finance Committee  under the Birmingham Corporation Act, 1919.

 

1187. RESOLVED:- That the above mentioned advances be approved and confirmed so far as the Bank is concerned.

 

1188.  The General Manager submitted a list of special cases, on consideration of which it was -

 

1189.  RESOLVED:- That the action of the Chairman be approved in authorising the repayments under the Mortgage Deed in respect of property, 9 Patrick Road, Yardley, to be extended from ten to twenty years, and in authorising the Town Clerk to endorse the Mortgage Deed accordingly, and that the General Committee be recommended to confirm such action.

 

1190.  RESOLVED:- That the General Committee be recommended to make representations to the appropriate Department with a view to the property, 25 Capcroft Road, Billesley, being put into a proper state of repair without delay, in order that the house may be resold.

 

1191.  RESOLVED:- That consideration of the case of 171, Monica Road, Small Heath, be deferred until the next meeting.

 

1192.  RESOLVED:- That the General Committee be recommended to instruct the Town Clerk to take action for recovery of the arrears and possession of the property in the case of 52, Ashbrook Road, Stirchley.

 

1193. RESOLVED:- That in the case of 253, Brook Lane, Kings Heath, where an Official Receiver has been appointed, the necessary steps be taken for the sale of the property should the repayments under the mortgage fall into arrear, and no action in regard thereto be taken by the Official Receiver.

 

9 Patrick Road, Yardley - W E Preston dec'd 

 

Advance	£190	-	-
Amount outstanding	£184	1	5
Arrears	£4	7	10
Last payment   24th Oct.	£4	-	-

 

A mortgage was originally granted to Mr W E Preston in respect of the purchase of the leasehold, which mortgage was subsequently discharged and a new one entered into in respect of the purchase of the freehold. The mortgagor dies on the 3rd November 1932 and Letters of Administration have been taken out by the widow and produced to the Bank.

The widow states that she is not in a position to keep up the payments on the basis of a ten years' advance and confirmation is desired of the action of Mr Councillor Cooper in authorising the Town Clerk to endorse the Mortgage Deed for the repayments to be extended from ten to twenty years conditional upon the payment of the stamp duties and Town Clerk's charges.

 

25 Capcroft Road, Billesley - Horton

 

Advance	£290	-	-
Amount outstanding	£264	19	5
Arrears	£25	14	5
Last payment  30th July	£3	10	-

 

This mortgagor was in financial difficulties and the house defective. The original application to be allowed the tenancy of a house was declined by the Estates Committee but the Bank were subsequently informed that the application for a tenancy would be reconsidered when the Town Clerk had taken legal proceedings for possession. The Town Clerk was accordingly instructed and the Estates Committee granted the mortgagor the tenancy of 50 Hollyhock Road, Hall Green. The keys of 25 Capcroft Road came into the possession of the Bank some time ago and the complaint of the mortgagor that the floors (back and front) also part of the staircase had dry rot has been confirmed by the Estates Department. The City Surveyor and the City Treasurer are aware of the position and the report of the architect, Mr Evans, has also been obtained. It is understood that a further inspection of the property is being made by the Estates Department and the condition of the house is such that it is impossible for the Bank to attempt to dispose of the property either by public auction or by way of private sale until the defects have been remedied.

The mortgage account has now assumed a very serious position.

 

171 Monica Road, Small Heath - Burton

 

Advance	£345	-	-
Amount outstanding	£241	15	6
Arrears	£12	4	2
Last payment   12th Nov.	£2	8	11

 

The advance in this case was granted in February 1926. In August 1931 the mortgagor attributed his arrears to the protracted illness of his wife, also stating that his wages had been reduced to £3 per week. As a means of helping the mortgagor the Bank accepted his offer to make an additional payment of 10/- per month. Correspondence has since taken place on the question of arrears and the mortgagor was notified in June 1932 that he must submit satisfactory proposals for putting the account in order. He again stated he would do his best to pay the additional 10/- per month but that his wages were being reduced every six months consequently he found it a great struggle to carry on. He stated that if at the end of September he had another drop in his wages he would have to find other accommodation and sell the house but he would be very averse to doing so.

In August last the mortgagor was informed that his offer to pay £3 on the 19th instant, and a further £3 on the 26th instant was accepted on the distinct understanding that thereafter he would make an additional payment of 10/- per month without fail. He was notified that if these conditions were not complied with the Bank would have no alternative but to instruct the Town Clerk to take proceedings for possession.

The mortgagor carried out his promise with regard to the payments on the 19th and 26th, also paid the additional 10/- on the 30th September. No further payment, however, was received until the 12th November when the sum of £2. 8. 11d was paid, representing one month's instalment of principal and interest. This payment should have been received by the Bank on the 23rd October.

This appears to be a case in which the mortgagor is quite unable to meet his obligations in respect of the purchase of the property.

 

52 Ashbrook Road, Stirchley - Edwards

 

Advance	£327	-	-
Amount outstanding	£269	8	2
Arrears	£12	2	10

 

Action in this case has been held over to give the mortgagor an opportunity of selling the property provided he would make a regular weekly payment of 12/6d, the Estates Department having promised him a house to tenant as soon as the above property is sold.

The mortgagor has been a source of trouble almost since the advance was granted and he has appealed to the Lord Mayor and several members of the City Council relative to the case. The wife wrote to the Bank in September last, stated that she had made every effort to keep up the payments but found it almost impossible to do so and asked to be accorded permission to meet the Bank Committee. A reply was forwarded to the effect that the decision of the Bank Committee could not be departed from. The mortgagor has not strictly carried out a arrangement to make a regular payment of 12/6d per week, consequently the arrears are increasing.

A short time ago the mortgagor called at the Bank, stated that he was hopeful of obtaining a situation and had approached Mr. Wilde with a view to his finding a purchaser for the property. Up to the present no fresh application has been received nor any intimation from Mr. Wilde that he has a purchaser in view. This is a case in which the mortgagor has received every possible consideration with regard to his account and the Committee are now asked to give a definite decision. 

 

The General Manager submitted the following list of cases of Mortgagors in arrear with their repayments, giving particulars of the circumstances in each case:- 

 

The under-mentioned cases are submitted for the consideration of the Committee with a view to the Town Clerk being instructed to take proceedings for possession.

 

Non-Corporation Houses

 

68 Runcorn Road, Balsall Heath - Ashwell

 

The mortgagor has been written to on numerous occasions on the question of arrears, but he has not put his account in order as requested, having only made a payment on account.

 

5 Blounts Road, Stockland Green - Armstrong

 

This mortgagor has given the Bank considerable trouble with regard to his payments and has been dealt with by the Town Clerk on at least five occasions. Upon application being made for the arrears, a letter was received from the mortgagor stating that he had lost his employment owing to a reduction of staff. In this case it is not desirable to allow the arrears to accumulate.

 

27 Blackburn Road, Hall Green - Tovey

 

Considerable trouble has been given in connection with this account, which is again in arrear. A letter has been received promising a substantial payment on Saturday, the 10th December.

 

12 Greenbank Avenue, Hall Green - Bleakley

 

The mortgagor has not been previously written to on the question of arrears but has not yet complied with the Bank's letter of the 30th November requesting him to put the account in order.

 

5 Melbury Grove, Kings Heath - Hale

 

Whilst making monthly payments the mortgagor does not entirely discharge the arrears. No payment has been received since the 31st October nor any explanation for non-payment.

 

54 Carlyle Road, Edgbaston - FitzGerald

 

The mortgagor is a schoolteacher and apparently does not intend to discharge the arrears. He has been written to on numerous occasions and no reply has been received to the Bank's letter of the 28th November last.

 

46 Maxwell Avenue, Handsworth - Baker

 

This mortgagor has been a source of trouble with regard to his payments, and a further month's payment of principal and interest has become due in addition to the arrears listed. Action is necessary in this case.

 

27 Oxford Road, Moseley - Lane

 

The mortgagor was requested to clear the arrears but has not done so. The lease of the property has only 38 years unexpired and there is no alternative but for action to be taken.

 

8 Vera Road, Yardley - Moisey

 

The mortgagor was notified by the Bank that his account was in arrear and that he must put the same in order. A letter has been received promising to discharge the arrears by the 10th December and should he fail to do so, action should be taken in view of the amount outstanding under the Bank's mortgage.

 

249 Gillett Road, Edgbaston - Fayne

 

The mortgagor has been requested to put the account in order without delay and has previously been written to on several occasions on the question of arrears. The last payment was made on the 18th August and as the Bank's letter asking for the account to be put in order has been ignored action is necessary.

 

Corner School Road & Ravenshill Road - Hobson

 

This mortgagor makes no payment unless threatened with proceedings. The Bank are in receipt of a Notice of Second Mortgage.

 

Corner Knightlow Road & Gilhurst Road, Harborne - Bridge

 

Payments in this case are made by Messrs. Harold Mayhew & Co., Solicitors, and application has accordingly been made to them for the amount of the arrears. A cheque has been promised for the 9th December and action should be taken should the arrears not be discharged as promised.

 

Corporation Houses

 

32 Purefoy Road, Kings Heath - Hicks

 

The above is in the possession of a tenant. The mortgagor has not complied with the Bank's request to clear the arrears and has been written to on several occasions previously. A further payment has become due in addition to the arrears listed and there appears no alternative but for a Receiver of the property to be appointed.

 

69 Haunch Lane, Kings Heath - Bayliss

 

This case has been a source of trouble and the Town Clerk has had to deal with the arrears on more than one occasion. The Bank's letter of the 28th November has been ignored and there is no alternative but for action to be taken.

 

136 Ward End Park Road, Ward End - Sharpe

 

The mortgagor has given the Bank considerable trouble with regard to arrears which will not be discharged unless firm action is taken. In October last a cheque was received at the Ward End branch which was returned marked "R/D", but the arrears were afterwards discharged.

 

Non-Corporation Houses

 

Property	Amount of Advance	Amount Outstanding			Arrears
	£	£	s.	d	£	s.	d.
68 Runcorn Road, Balsall Heath	240	220	8	2	3	8	2
5 Blounts Road, Stockland Green	340	281	11	-	9	13	-
27 Blackburn Road, Hall Green	480	334	3	-	8	3	-
12 Greenbank Avenue, Hall Green	720	603	3	-	15	3	-
5 Melbury Grove, Kings Heath	480	336	-	10	8	-	10
54 Carlyle Road, Edgbaston	480	350	18	8	6	18	8
46 Maxwell Avenue, Handsworth	440	382	2	7	8	2	7
27 Oxford Road, Moseley	720	650	3	8	14	3	8
8 Vera Road, Yardley	330	317	17	1	4	7	1
249 Gillott Road, Edgbaston	380	260	8	8	7	2	-
Corner School Road, Yardley Wood	775	691	16	-	13	13	6
Corner Knightlow Road, Harborne	600	589	18	6	9	18	6

 

Corporation Houses

  

 

Property	Amount of Advance	Amount Outstanding			Arrears
	£	£	s.	d	£	s.	d.
32 Purefoy Road, Kings Heath	327	234	19	6	4	14	3
269 Haunch Lane, Kings Heath	410	303	4	2	5	19	2
136 Ward End Park Road, Ward End	412	354	16	10	6	7	2

BACK TO THE TOP