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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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We had seen a commercial property in April. The landlord said

Resolved Question:

We had seen a commercial property in April. The landlord said it was 74 years lease and The head lease coming to us directly from the city council. Hence we paid 5K non refundable deposit subject to exchange of contract within 28 days.
During this period our mortgage been approved from the bank subject to valuation. The valuator pinpointed few negative remarks (existence of Japanese knot weed, Roof problem and floor movement) suggesting the property does not secure the mortgage. The bank suggested to look for another property. When I explained to the landlord he said if I pull out from the deal I will loose my 5K. Instead he will provide me loan ( 10 years interest only payment) and also agreed to treat Japanese knot weed for 20 years and repair the roof provided I must show my commitment by transferring another 15K within 24 hrs.
When the bank Manager came to know I am going forward with the same property and landlord giving me the loan, they suggested once the work completed in the property he will do the re evaluation of the property and if everything ok then I will be able to get my mortgage. If not I can still have finance from the landlord. Sounded like a good plan. Landlord agreed to start the job in the property on 29th of July. But he did not start his work until 26th of August. Meantime he changed his lending plan from 10 years to 3 years interest only saying he has some other commitments.
The landlord sent his first lease contract to my solicitor on 21st of August. On our meeting with the solicitor on 2nd September we came to know it wasn’t head lease instead an under lease and the investment will be at risk. My solicitor advised every thing can be done properly at a cost of £9500 but need patience and time.
When I confronted this with the landlord he was furious and refused to finance me, even threatening me saying I have lost my 20K. He given me a deadline to exchange contract by 30th of September or else he will sell the property on auction and any shortfall will be claimed from me
Since my bank was using different solicitor , I was worried he may not recommend this under lease contract and difficult to get mortgage. Hence I decided to use same solicitor as the bank. I discussed with the landlord and he agreed hence I changed the solicitor within 24 hrs. But he did not give permission to transfer the documents to the new solicitor from old solicitor.
On several requests from my solicitor he did not forward the any contract documents. On 3rd October he told us the property on auction and if we want the contract to download from the auction site. My solicitor downloaded and gone through it. His first comment was the contract is laughable. We cannot go forward with this contract as this is way too risky to invest under this contract. His suggestion was to pull off the deal and get our 20K back. My solicitor send the letter to the landlord stating there was fundamental mislead. But the landlord has not replied to this letter.
The property will be auctioned on 21st October. To collect 20K through solicitor the fees are too high and I cannot afford at the moment. I want to know can I approach the county court myself without a lawyer and how can I stop the property being auctioned/sold without my money being returned?
Pease provide me your suggestions.
Regards
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

Yes you can approach the Court yourself.

Alex Watts :

You need to write and set out your losses and request a refund within 14 days or say you will go to Court within 14 days. You should make sure you send this signed delivery and keep a copy.



If they do not refund you then you can issue proceedings in the County Court. You can either do this online at: www.moneyclaim.gov.uk or by completing form N1 http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n001-eng.pdf and take it to your local County Court.



The Court will then issue a claim which a copy will be sent to the Defendant who will have a limited time to defend it, if not you can enter Judgment and enforce.



If the matter is defended it will be set down for a trial. If the claim is for £10,000 or less it will be a small claim and you will not need representation.

Alex Watts :

As your claim is above £10,000 then you can get a Public Access Barrister to represent you at trial

Alex Watts :

If you win then you can claim these costs back too

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

many thanks for your help. Is there any way to stop this property being auctioned or concentrate to to collect money which one is more appropriate. thanks

Alex Watts :

You can try and seek an injunction

Alex Watts :

You would also need form N1

Alex Watts :

And form N16a

Alex Watts :

http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n016a-eng.pdf

Alex Watts :

The process is the same but you would ask the Court for an order to stop the sale or prevent it

Alex Watts :

If the Judge grants the order and it is breached, that is contempt of Court

Alex Watts :

That means they would be warned, fined or sent to prison

Alex Watts :

Can I clarify anything else for you?

Customer:

thanks once again . if i need your help how can I contact you plz

Alex Watts :

You can post any new questions for me: ALEX W

Alex Watts :

Then it will come to me

Customer:

ok thanks mam.

Alex Watts :

If I could invite you to rate my answer before you go - the button should be at the bottom of the screen

Alex Watts :

If you need more help please click reply

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