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Stuart J
Stuart J, Solicitor
Category: Law
Satisfied Customers: 22400
Experience:  PGD Law. 20 years legal profession, 6 as partner in High Street Practice
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a. if i get possession order for an investment property owned

Customer Question

a. if i get possession order for an investment property owned by a limited company where will this be registered? eg companies house or not?

b. I am the second charge holder - Will i have full conduct of sale and what is position re first charge holder, in particular if there is a shortfall?
Submitted: 3 years ago.
Category: Law
Expert:  Stuart J replied 3 years ago.
-Could you explain your situation a little more?

Customer: replied 3 years ago.

I have second legal charge on a property/site owned by a company , with personal guarantees from directors. They have not paid and i am applying for a possession order which i assume will give me conduct of sale. First lender not showing any interest. If i can an order and property is sold and there is a shortfall i can enforce personal guarantees of directors. If there is a shortfall in amount first lender is owed when ii get the figures can i still enforce the sale - assuming proceeds must go to them first


 


Thank you

Expert:  Stuart J replied 3 years ago.

You have to get the first lenders agreement or a court order before any sale will go through and they have to be paid in full.

If they do not get paid in full, then it is most unlikely that the sale would go ahead, although if there are arrears , they may be happy even if there is a shortfall in their money, for you to do all the legal work and them et most of the money back, leaving you with the big legal bill and no money and them having any effect got a forced property sale with no legal costs.. Does this answer the question?

Customer: replied 3 years ago.

Nearly - Please clarify because I am getting conflicting advice - if we get a possession order from the court and conduct of sale and there is a shortfall to first lender does this mean that the sale cannot be forced without their agreement? and secondly will the possession order be recorded on any public register/ eg Companies house records


 


Thank you

Expert:  Stuart J replied 3 years ago.

If they do not get paid in full when the sale completes, they can oppose the application for the order for sale and it is for the court to decide.

Even second and third charge lenders, if not being paid in full,. can oppose any application for sale if they are not going to be paid.

There is a difference remember between a voluntary sale and a court ordered sale. if there is a court ordered sale and there is shortfall , then whoever has the shortfall, takes it on the chin

A solicitor needs an undertaking from the first charge lender to discharge the mortgage on receipt of the funds. The solicitor confirms the amount being sent.

If the lender will not agree to forego any shortfall, . The sale does not go ahead.

the possession order would normally be recorded on the credit file but not at companies house . . The charge itself however should be registered at companies house already , but that depends if you registered it .

More?

Customer: replied 3 years ago.

Sorry I am even more confused - I am quoting from your response - 'There is a difference remember between a voluntary sale and a court ordered sale. if there is a court ordered sale and there is shortfall , then whoever has the shortfall, takes it on the chin' - I am assumong that if a court grants possession and conduct of sale then it is a 'court ordered sale' rahter than 'voluntary' - let me know if this is not correct. If possession order and conduct of sale means it is automatically a court ordered sale then first charge holder had no say other than receiving proceed achieved, he has no further say in the sale and i can pusue the directors under the persinal guarantee - aplogies to labour the point but i need to be clear in my head what your response is. thank you

Expert:  Stuart J replied 3 years ago.

That is correct. If I have loads of charges and I am selling my property, any charge holder who had shortfall can stop the sale in effect by not discharging the mortgage because they havent had all their money.

If the court orders the sale, the charge holders have no say after the order, they can only oppose the application.

Any shortfall can be pursued againt the Co or the directors under PG.

Customer: replied 3 years ago.

Hello. Is there a maximum claim limit can cab be pursued in a county court (money claim on property transactions. I have two claims, one for £278,000 and the other for £300,000 against another company, formerly a JV partner


 


Regards


 


Jospeh

Expert:  Stuart J replied 3 years ago.

If over £15k it will usually be allocated to high court.

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