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Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.
Does the bank have a floating charge over all of your properties or these individual mortgages that you have in respect of each property with separate loans in respect of each one please?
HiI'm not sure of term floating charge.
there are two principal ways in which banks lend money. They eitherwill lend on separate mortgages for each property or they may give you a credit facility normally in the form of an overdraft of one form or another and take security against more than one property to support that credit facility. do you know which is the arrangement here?
Basically every time I have added a property, the new loan security schedule lists all other properties I have with lloyds.
This suggests that it is a floating charge - i.e. one central credit loan supported by security against more than one property. Would you agree?
As an example I remortgaged 3 properties in 2012 for a total of 646k on a repayment loan. That loan has fallen to 610k yet they are saying it would cost 770k to redeem these 3 properties.
I don't think its a floating agreement
Each new loan was always opened on its own merit
Each time I bough a new property any existing property was added to security schedule
Because I have business banking I have 15 and 20 year loan agreements as opposed to mortgages
Thank you. based upon what you are telling me, this has all the indications that the arrangement is a floating charge across all of your properties however, if you are in doubt, you can ask the bank to confirm whether they have a floating charge or whether the individual mortgages against each property. A floating charge would be consistent with a bank's business practices for a business customer. However, the distinction is to some extent academic for the purposes of your query
may I confirm if your business has a turnover of less than €2 million (it is expressed in Euros due to a European directive) and has fewer than 10 employees?
Yes, it is far less then that and I do not have employees
To reiterate - I'm clear on my total liability to bank as I have my loan accounts on line and they equal 1.2 million. Their are no penalties for ending them.
So how can they say my approximate redemption is 1.4million and refuse to give me accurate individual redemption figures?
thank you. The bank has obligations to you under both the banking code and common law to reasonably account to you for any debts the bank claims you owe. accordingly, so far as is reasonably possible for the bank to do so, it must provide you with a comprehensive account of your liabilities and indebtedness to them.
equally, if you wish to release one or more of the properties that are charged to the bank from their security, the bank must act reasonably in respect of such a request and provide you with a redemption figure required in order for them to release security over that particular property. Such redemption figure must be reasonable in all the circumstances having regard to your overall indebtedness, liquidity and the value of the property
if the bank is falling short in respect of any of these obligations, in the first instance, you can raise a formal complaint with the bank which will be referred to its complaints division. They are required to deal with your complaint in accordance with their complaints procedure and give you a formal written response. If you are not satisfied with their response, because your is this falls within the above limits, you have a right to refer your complaint to the financial ombudsman without charge.
the financial ombudsman can independently review the banks actions and decisions and make an order to the bank as to how it should address any decisions you complain of and where it finds appropriate, make an order of compensation. you cannot refer the matter to the financial ombudsman until such time as you have completed a complaint to the bank as above and given them the opportunity to resolve the matter between you
is there anything above I can clarify for you?
Do you think it would be worth retaining a solicitor to send some letters to them in these circumstances? Obviously it involves a cost but the ombudsman process can be quite lengthy. What do you think?
of course you could decide to appoint a solicitor but you would potentially be unlikely to recover the costs of doing so and my experience with banks is they have little regard for solicitors correspondence as banks a large beasts and do not pale in the face of threats of litigation.
OK. Many thanks for that.
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