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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 11748
Experience:  30 years as a practising solicitor.
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I am bankrupt, My only debt is to the bank.when my business

Customer Question

I am bankrupt, My only debt is to the bank.when my business went down they made me sign that my depts become secured over my house, my husband who has occupancy rights was not asked approval. We have 2 sons with autism. My husband has offered to buy back our house at the value on it with occupancy rights. The bank have refused and I have received call up papers to go to Court. It is now over 5 years since the extra dept was put on to my house. I have had the house for sale for two years with no offers. I now suffer depression and suicidal thoughts. We could manage to pay the original mortgage without the extra on top. What do I do?
Submitted: 1 year ago.
Category: Law
Expert:  JGM replied 1 year ago.
Thank you for your question.
If your husband wasn't given independent legal advice about the nature and effect of granting a security over the house in respect of your business debts then the security can be challenged on that basis and there is legal authority in a previous case involving the Bank of Scotland to that effect.
If that is not arguable in your case, and your own lawyer would have to investigate the detailed facts, then you will have to see if your husband can buy off the bank. All he has to offer to pay is the amount secured by the bank's security. He isn't entitled to ask for a new loan arrangement or instalment payments however. The bank don't have to accept that. Your narrative isn't very clear on what is secured. Is there an existing mortgage account which is secured prior to the bank debt? In other words does the bank have a second (postponed security) on the property?
The bank is entitled to the amount secured by their security up to the value of the house less any first ranking security.
Happy to discuss further.
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Customer: replied 1 year ago.
I would like to discuss further on the telephone if that is possible? My number is *****
Customer: replied 1 year ago.
There was no other mortgage. I had a lower loan from Clydesdale bank over my house it was ring fenced. Not part of business lending. I was offer new facilities by RBS with greater lending facilities but on a like for like basis, I moved to RBS but did not realize they were not protecting my home as Clydesdale did, when my business went down with debts of £300,000 they reconstructed a bee facility putting an £880,000 loan over my house which is presently worth £700,000 without occupancy rights and approx £350,000 with occupancy rights. The bank has offered my husband £75k to give up his occupancy rights then they intend to evict me. We have two children with autism who are greatly affected by this.
Customer: replied 1 year ago.
My husband offered to buy back our house for £475k the absolute max we could manage. They turned it down. The loan we had with Clydesdale was £390k when we moved to RBS I accepted a £540k loan over my house.
Customer: replied 1 year ago.
I have always been the owner of our family home but my husband paid an equal contribution to the mortgage.
Customer: replied 1 year ago.
I look forward to a further online reply and want to hear more about The Bank of Scotland case he referred to.
Expert:  JGM replied 1 year ago.
How much is owed to the bank?
Expert:  JGM replied 1 year ago.
This will be of interest.
http://www.shoosmiths.co.uk/client-resources/legal-updates/Cooper-v-Bank-of-Scotland-inter-spouse-guarantees-6863.aspx