§ Mr. Tony Banksasked the Secretary of State for the Environment how many Greater London council mortgages have been transferred to the London residuary body; and what information he has regarding the current number of such mortgages.
§ Mr. John PattenA total of 43,618 residential mortgages were taken over by the London residuary body on abolition. At the end of October, 39,150 remained with the LRB.
§ Mr. Tony Banksasked the Secretary of State for the Environment how many representations his Department has received from ex-Greater London council mortgagors in respect of the letter to them from the London residuary body dated 7 November.
§ Mr. John PattenOne former GLC mortgagor has telephoned the Department, and two have made representations through their Members of Parliament. All those making representations have been informed that the offer contained in the LRB's letter of 7 November is entirely voluntary; that any mortgagor who does not wish to accept need take no action; and that any transfer of the mortgage on the winding up of the London residuary body will be at no cost to the borrower.
§ Mr. Tony Banksasked the Secretary of State for the Environment what arrangements he intends to make to protect former Greater London council mortgagors following the abolition of the London residuary body.
§ Mr. John PattenThe Local Government Act 1985 requires the residuary bodies to complete their work within five years of the abolition date. They are also required to submit, within four years of the abolition date, a scheme for their winding up, and for the disposal of any remaining property, rights and liabilities. My right hon. Friend will consider any scheme or proposal made by the LRB in due course, and will make suitable provision for remaining LRB mortgages to be transferred to another body.
§ Mr. Tony Banksasked the Secretary of State for the Environment if he will direct the London residuary body to compensate mortgagors for any additional expense arising from the transfer of their mortgages from the London residuary body to a building society; and if he will make a statement.
§ Mr. John PattenThe London residuary body, in conjunction with five building societies, wrote to 5,000 ex-GLC mortgagors on 7 November to offer them the opportunity to refinance their mortgages. The letter explained that anyone who accepts the offer may have to pay certain fees. But the offer is entirely voluntary, and any mortgagor who does not wish to incur expense need take no action. Any mortgages remaining with the London residuary body when it is wound up will be transferred to another body at no cost to the mortgagor.