Form N120 is a key document used by a bank or mortgage lender when repossessing a residential property.
The bank or lender must submit this form to the local county court, alongside Form N5 to begin the property reclamation (repossession) process.
Form N120, also known as the Particulars of Claim, is used only in the repossession of mortgaged residential premises. Other similar forms are used for reclaiming property from non-paying or contract-breaking tenants (N119), and squatters (N121) respectively.
(Form N120, courtesy of the UK Government, reproduced under the Open Government Licence)
When will you encounter Form N120?
You would only encounter Form N120 if you failed to service (make payments against) a mortgage secured against a property you own.
If you fall into mortgage arrears, and your lender decides to initiate legal proceedings to reclaim possession of the property, they will send you a filled-in copy of Form 120.
This will be sent alongside a copy of Form N5, which contains the details of the property in question and the possession hearing itself. This will also include a document titled ‘N7 Notes for The Defendant’.
These forms serve as the formal notification legal possession proceedings have begun against you.
What are the contents of Form N120?
Form N120 is filled in by the claimant (the bank or lender) or their legal representative and contains details about the mortgage and the defendant.
In the form, the lender must define the property in question, who to the best of their knowledge occupies it, and explain why they are attempting to claim possession of it.
The bank must also detail the terms of the mortgage, including the amount borrowed, the current repayment plan, the interest rate at various points and the total amount required to pay off the mortgage in full.
The lender must also include a description of the steps it has already undertaken to recover their loan secured by the mortgage. This could include attempts to communicate and offers such as mortgage holidays or changing the terms of the mortgage agreement.
Details of the defendant (yourself) are also required, particularly if you are in receipt of any benefits, such as Universal Credit, and if any of these benefits are passed directly to the claimant.
The claimant should detail any relevant tenancies too. If the lender approved of any tenancies before making the possession claim, they must detail what actions they intend to take concerning that tenancy.
Finally, the claimant or their representative must sign a Statement of Truth. Note that if it turns out you have knowingly lied while filling out the form, this means proceedings of contempt of court can be brought against you.
What are the N7 notes for the defendant?
(The N7 notes for the defendant, courtesy of the UK Government, reproduced under the Open Government Licence)
The N7 notes are a document accompanying Form N120, which provides guidance to defendants faced with repossession claims initiated by a lender.
These notes offer advice about the repossession hearing, briefly explaining the process behind such a claim, and outlining the steps a defendant should undertake to navigate the legal process efficiently:
The document advises immediately seeking legal advice to help you fill in the appropriate defence form, Form N11M, which should be returned to the court within 14 days of receiving notification of the claim.
Also explained are the potential outcomes of the hearing. It explains that a judge can:
- Decide not to make an order,
- Make a possession order, but suspend it, giving you a chance to pay off your arrears,
- Make a possession order for an upcoming date, where the property must be transferred to the claimant,
- Or, if the loan agreement is regulated, make changes to it to fairly resolve the case.
Finally, the notes explain that the court’s decision can be enforced by a bailiff. This means that any money orders will be kept on the register, and that any payments of arrears should be sent directly to the claimant, rather than through the court.
How should you react to Form N120?
You should only receive Form N120 if you have mortgage arrears and are aiming to avoid repossession of your home.
Normally, lenders will attempt to contact customers with arrears privately to arrange repayment, before involving a court. Banks generally only involve a court if negotiations fail to reach an acceptable result.
However, there are still things you can do after this point. Upon receiving a copy of Form N120 you should aim to complete the following steps:
1. Seek Legal Advice
Getting good legal advice is essential in order to deal with an attempted home repossession and deciding whether to attempt to contest it or not.
You should try and find a solicitor who specialises in property law and ideally repossessions.
There is a well-known saying in law: “The man who defends himself has a fool for a solicitor”. Having access to expert legal advice is key to ensuring the best possible outcome.
2. Re-establish communication with your lender
While it may have been a lack of communication which led to legal action being initiated, it is still critical that you maintain or re-establish communication with your lender. Despite legal proceedings having been started, there may still be an opportunity to negotiate a resolution which is workable for both parties.
Even when this is not the case, maintaining communication can help you mitigate losses and demonstrate good faith to the court. In addition, communication gives you documented evidence which shows your attempt to resolve the issue, which the court will appreciate.
Finally, this allows you to get a better sense of what the lender wants. By developing an awareness of the lender’s position, you and your legal counsel can formulate a more effective defence or counterproposal.
3. Gather Evidence
An effective defence requires good evidence. Start collecting all relevant documentation and evidence that can support your case against repossession.
This could include proof of your financial situation, payment records, any communication between you and the lender, and documentation of any circumstances that led to your mortgage arrears.
You should work closely with your legal adviser to work out what evidence will most benefit your case.
4. Respond to the Court
When facing the risk of repossession, you must respond to the court.
Accompanying form N120 will be a defence form which you will need to fill out to respond to the claim. In mortgage repossession cases in the UK, the defence form is called ‘Form N11M’. It asks for your personal details, the details of your mortgage or tenancy, and any other relevant information related to the case.
You should consult with your legal adviser when filling in the defence form. They can help you understand and decide how to best present your case. It is important to be truthful and to supply all the requested information, as well as any evidence that could support your case.
After submitting your defence form, follow up with the court to ensure it has been received and processed. Stay in communication with the court and adhere to any further instructions or deadlines
5. Prepare for the Hearing
You should familiarise yourself with the court’s procedures and expectations, as well as organise your documents and evidence in a clear, accessible manner.
You should also ensure that your legal counsel has prepared responses for questions which are likely to come up in the hearing.
By working closely with your solicitor to prepare, you can substantially improve your chances of a successful result, whether that be a suspended order or a re-worked mortgage agreement.
6. Attend the Hearing
The final step following the receipt of form N120 is to attend the possession hearing.
By being punctual, dressing smartly, and acting in a calm, respectful manner you can maximise your chances of a positive outcome and avoid repossession.
You should listen carefully to what is said, and respond respectfully and relevantly, keeping your legal adviser’s advice in mind.
If you need additional guidance during the hearing, you should consult with your legal representative.
What if I cannot afford legal representation?
If you cannot afford to pay for legal representation, you can apply for Legal Aid.
Legal Aid in the UK is designed to aid individuals who are unable to afford legal representation. It can be offered free of charge, or a partial or full repayment plan may be agreed upon beforehand.
Eligibility for Legal Aid is determined based on several factors including the type of legal problem you have, your income, and your capital (savings and property). Legal Aid may be available for you provided you have household savings below £8,000, own less than £100,000 equity in their home, and have a monthly income of £2,657 or less.
You can complete the initial financial assessment via the UK Government website.
If you cannot afford a legal adviser and are not eligible for legal aid, the following organisations may also offer you some support.
- The Money Advice Service is a free and impartial body set up by the UK Government to help people struggling with money problems. They offer online advice and tools as well as a helpline you can call to talk over your problems.
- National Debtline is an independent organisation that offers free financial advice over the phone and online for anyone with debt problems.
- LawWorks is a pro bono group of solicitors, who offer a list of free legal advice clinics.
- Advocate is a charity which attempts to find volunteer lawyers for people who are not eligible for Legal Aid.
- Finally, the Step Change Debt Charity also offers help and advice if you are in financial distress.
In Summary
Form N120, the particulars of the claim form, is used in the UK legal system as a key part of the process of repossessing a mortgaged residential property.
It contains the details of the mortgage and arrears in question. It also confirms the steps already undertaken to reclaim the money and specific details about the borrower as well as any tenancies which apply to the property.
When received by a homeowner, Form N120 will be accompanied by the N7 notes for the defendant and an N5 claim form.
If you find yourself receiving these documents, you should immediately seek legal advice, and prepare to attend the possession hearing. If you cannot afford legal representation, you should contact the many organisations that can offer to help people in this situation.
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