DRN-6321823

The complaint Mr S passed away in 2008 and Mrs B was appointed as personal representative (PR) of his estate in December 2009. A 15-year interest-only portfolio buy-to-let BTL mortgage Mr S had taken out with TMW in 2005 expired in 2020. TMW instructed Law of Property Act Receivers (LPA Receivers), who sold all the properties except one, which Mrs B purchased in her personal capacity. On 24 April 2026 I issued a decision in which I decided that the only issues I am able to consider are as follows: - whether TMW was entitled to add LPA Receivers’ fees and other fees and charges to the mortgage account after 11 July 2023; - Mrs B’s claim for legal fees incurred by the estate concerning requests for information about LPA Receivers’ fees. What happened An Investigator looked at the above issues and was satisfied that TMW was entitled to add fees and charges to the mortgage account. He also explained that TMW wasn’t required to provide copies of invoices to the estate. The Investigator thought that TMW had communicated with the estate’s solicitors and provided them with a breakdown of the LPA Receivers’ fees. He didn’t think TMW was required to pay the estate’s legal fees. Mrs B didn’t accept the Investigator's findings and asked for an Ombudsman to review the complaint. Mrs B said that, although TMW had provided a list of the fees applied to the account, it hadn’t provided the invoices to which those fees applied. What I’ve decided – and why I’ve considered all the available evidence and arguments to decide what’s fair and reasonable in the circumstances of this complaint. I’ve reviewed my decision dated 24 April 2026 and remain of the opinion that the only issues I can consider are those listed in above. Fees added to the mortgage account after July 2023: Mrs B has referred to the mortgage terms and conditions, arguing that these say that TMW is obliged to provide invoices for any work done on the properties. For clarity, Mrs B sent us an extract from what she describes as a ‘Key Illustration’. However, it is the 2021 mortgage conditions which apply here. Clause 18 of the mortgage terms and conditions allow TMW to apply fees and charges to the mortgage account. These include (but are not limited to) LPA Receivers’ fees, as well as fees and charges that have arisen in connection with the property.

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This also includes demands made on TMW for unpaid ground rent and service charges due to the freeholders or their agents. Generally we would expect the freeholders to obtain a court or tribunal judgement for the outstanding debt before a lender would be required to pay these. However, given the mortgaged properties formed part of a portfolio and the borrower was deceased, I think it was reasonable for TMW to pay service charge and ground rent demands without the need for the freeholder to take the matter to a court or tribunal. I can see from its records that TMW wrote to Mrs B about outstanding service charges, explaining that the estate needed to pay these, and that in the absence of confirmation of payment, or evidence of a genuine dispute over the charges, TMW would pay the charges and add them to the mortgage account. In its final response letter dated 3 September 2024 TMW explained that after Mrs B purchased (in her personal capacity) the final property in the portfolio to be sold, there was a further sum due in relation to insurance. I can see that on 27 June 2024 TMW explained that fees of almost £1,400 were due, but by the time the mortgage was redeemed over three weeks later on 19 June 2024, a further £136 was due. It was reasonable for TMW to insure the property until it was sold, and so this fee has been reasonably incurred. Mrs B’s argument is that she believes TMW is required to provide her with invoices for all work done on the properties. Mrs B says that clause 14.3 of the mortgage conditions provide for this. As stated above, the conditions Mrs B has quoted have now been superseded by the 2021 mortgage conditions. Clause 16.3 of the 2021 mortgage conditions say, however: “Neither we nor any receiver appointed under the mortgage shall be liable as mortgagee or mortgagee in possession to account to you for anything except actual receipts by us or the receiver…” (This mirrors the wording of clause 14.3 of the obsolete conditions Mrs B has sent us.) However, this doesn’t mean that TMW or the LPA Receivers are required to provide invoices for work done – only to account to the estate for receipts – which in this case means monies received by TMW into the account, such as rental or mortgage payments passed on by the LPA Receivers, not receipts for work carried out. After reviewing the account, I’m not persuaded TMW has applied fees and charges that it was not entitled to do. Legal fees incurred by the estate: I’m satisfied TMW communicated with the solicitors instructed by Mrs B on behalf of the estate and provided them with the information they’d requested about the charges applied to the account. I’m therefore not persuaded there is any basis on which it would be fair or reasonable for TMW to be expected to reimburse the estate for any legal fees in this respect. In the circumstances, I’m unable to find TMW has done anything wrong in relation to its handling of this account. I acknowledge Mrs B’s strength of feeling about what’s happened, and her wish to have itemised invoices for all the work instructed by the LPA Receivers. As I explained in my decision dated 24 April 2026, the LPA Receivers are the agents of the estate, not TMW. Given this, if Mrs B wants a breakdown of the LPA Receivers’ fees, or copies of invoices paid by the LPA Receivers, she will need to contact them. LPA Receivers do not come within the remit of the Financial Ombudsman Service.

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My final decision My final decision is that I don’t uphold this complaint. This final decision concludes the Financial Ombudsman Service’s review of this complaint. This means that we are unable to consider the complaint any further, nor enter into any discussion about it. Under the rules of the Financial Ombudsman Service, I’m required to ask the estate of Mr S to accept or reject my decision before 26 May 2026. Jan O'Leary Ombudsman

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