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I have a property investment company and am investing with a family member that is a self employed indirect tax consultant representing clients that are being investigated for not paying VAT etc.
The application for bridging finance to purchase a property is going in his name and hence the lender requires bank personal and business bank statements.
It is making applying for finance very difficult as we are unsure if showing bank statements showing client payments to the business (i.e. identifying that they are going through litigation) breaks litigation privilege.
My understanding was that it covers sensitive communications but was unsure if it extended to the fact that they are being represented.
Thanks for your help
The payments are for litigation that is ongoing.
It has no details of the litigation, just the clients name showing on the bank statement that they are making payments to the business.
We tried sending statements with the names blanked out but this has raised questions and problems with the lenders.
The client's making payments are party to litigation.
Could you just explain further what you mean by potentially champertous?
The statements are only being used to evidence income and mortgage payments out as with a normal mortgage application or loan. They have no relation to any litigation proceedings. The lender for the investment property who the application is going through has no or will never have any involvement with any litigation proceedings relating to the clients showing on the business account.