Not upheld: fees and charges; provision of invoices; legal fees reimbursement complaint against TMW

Decision detail

Summary

Mrs B, as personal representative of her deceased husband's estate, complained that TMW improperly added LPA Receivers' fees and other charges to a buy-to-let mortgage account after July 2023, and refused to provide invoices or reimburse the estate's legal fees incurred in requesting information. The ombudsman found that TMW was contractually entitled under the 2021 mortgage conditions to add such fees and charges, and that the conditions do not require provision of invoices, only accounting for receipts. TMW had properly communicated with the estate's solicitors and provided information about charges. The ombudsman noted that the LPA Receivers, as agents of the estate rather than TMW, are responsible for providing detailed invoices if requested. The complaint was not upheld.

The Ombudsman's reasoning

Clause 18 of the 2021 mortgage conditions permits TMW to apply fees and charges to the mortgage account, including LPA Receivers' fees and charges arising in connection with the property. Given the portfolio nature of the properties and the deceased borrower status, it was reasonable for TMW to pay service charge and ground rent demands without requiring court judgments. Clause 16.3 of the 2021 conditions requires only accounting for actual receipts, not provision of invoices for work done. TMW provided the estate's solicitors with information about charges applied. The LPA Receivers are agents of the estate, not TMW, so inquiries about their invoices should be directed to them.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website