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It arose on a property owned jointly by four of us. This property was repossessed after a couple of years from me dissolving the partnership due to non payment of mortgage. Sold middle of last year.
Ummm...when do(es) (an) individuals need to provide a guarantee on (his)/their own mortgage?? The property was purchased in 4 joint names (no limited company involved that would give the need for personal guarantees!!). This property was the trading premises of the partnership. I would imagine that we were joint tenants of this property - but when I dissolved to partnership which was disputed by the remaining partners, the court subsequently confirmed my dissolution and also confirmed that the property was a partnership asset. Does this indicate that we were tenants in common? The mortgage of the property was taken in our 4 names.
I also had a further query - the property was disposed of at nearly a quarter of the market value. Do I have any recourse because of the speedy disposal giving rise to a loss.My view is that the reserve price at auction was set too low, even though the LPA receivers were aware of a definite awaiting buyer, who in fact subsequently purchased at auction. I understand that the bank and the Receivers acted may not have observed their duty of care. My other partners definitely frustrated the sale of the property by entering into sham leases to tenants, without the banks permission, before the property was "repossessed". Neither the Receivers nor the Bank ever took possession of the property from my other partners. The Receivers were fully aware that the leases were a sham. Also the longest lease expired at the end of this year - all they had to do is wait to get possession to enable a proper sale.
Are my queries beyond your expertise?