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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I'm hoping you may be able to help me as I'm not sure who to

Customer Question

Good evening,
I'm hoping you may be able to help me as I'm not sure who to get advice off
I am in a partnership with 1 other person which owns the freehold on a commercial building which has a mortgage left of £425.000
The bank have 2nd charges against our own properties. my partner's own house and they have charges on two of my buy to let houses.
We have never defaulted on a repayment but in the last 2 years have had to reduce the repayment loan to interest only. The bank have given us 6 final months to make full repayment. So we have the building up for sale for £500.000
My fear is that if we do not find a buyer before December the bank may serve a repossession notice if that is possible ?
Are they able to do this as we are paying extra on top of the interest repayments and will continue to do so until it is sold?
My other concern is if the bank repossess it and then can't sell it they may undersell it at auction and then chase us for any negative equity ? Could they then force us to sell our own properties to make up any shortfall ? Would this demand be made equally between myself and my partner ?
And finally could they come after any of my other assets or just the 2 properties they have charges on ?
I hope have been clear in my explanation
Kind regards
Alastair
Submitted: 11 months ago.
Category: Law
Expert:  Nicola-mod replied 11 months ago.
Hello,
I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.
I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
Thank you!
Nicola
Customer: replied 11 months ago.
Hi Nicola,
No problem I'm happy to wait
Regards
Alastair
Expert:  Nicola-mod replied 11 months ago.
Hello,
We will continue to look for a Professional to assist you.
Thank you for your patience,
Nicola
Expert:  Nicola-mod replied 11 months ago.
Hello,
I apologise as we have not yet been able to find a Professional to assist you. Do you wish for me to continue to search for someone to assist you or would you like for us to close your question at this time?
Thank you for your patience,
Nicola
Customer: replied 11 months ago.
Hi Nicola
Proving a difficult one !
Please keep looking
Thanks
Alastair
Expert:  Nicola-mod replied 11 months ago.
Hello,
We will continue to look for a Professional to assist you.
Thank you for your patience,
Nicola
Expert:  Ash replied 11 months ago.

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

How long do you have on the mortgage please?

Customer: replied 11 months ago.
Hi Ash
If I remember correctly the original capital repayment mortgage started 2008 and was for either for 12 or 15 years
Full repayments were made for 8 1/2 years before we had to reduce payment to interest only
Regards
Alastair
Expert:  Ash replied 11 months ago.

Just to clairfy they have called in the loan?

Customer: replied 11 months ago.
They were about to but have given us 6 months grace so we have until End of December when they are suggesting that will call in loan then if we haven't found a buyer for the building
Expert:  Ash replied 11 months ago.

Ok. It's bad news I am afraid. If you have broken the terms of the agreement and I assume you have because you have moved to interest only they are entitled to enforce the mortgage.

This is because, I imagine they have a charge on the property and as such because this is a loan are entitled to call it in.

All you can do at this stage is write and make a formal complaint. This will be I vetsgated and if they do not find for you then and only then might you be able to complain to the financial ombudsman. They operate an independent and free service. They will be able to Investgate your complaint at www.financial-ombudsman.org.uk

But sadly if you can't pay it and they have called in the loan, options are limited.

I am sorry if this is not the answer you want and certainly not the one I want to give you, but I have a duty to be honest.

Can I clairfy anything for you about this today please?

Customer: replied 11 months ago.
Thanks I understood they can call it in but this hasn't answered my other questions which I am more concerned about which I did put in my initial email
Which are
1.Can they legally force an auction sale if we can't find a buyer and then make me sell my other properties which they have charges on to make up any shortfall if falls into negative equity ?
2. Will they chase my partner on the same level I.e on a 50/50 split to repay any shortfall ?
3. Can they pursue any of my other financial assets or just the property they have charges against again if there is a shortfall from selling the building
Regards
Alastair
Expert:  Ash replied 11 months ago.

1. They can attempt to sell it. If they can't clearly they can't invent a sale. Yes if they add charges you would be responsible.

2. No, you are joint and severelly liable. So they go after the person with the biggest pot.

3. Other assets yes if you are guarantor.

Does that clairfy?

Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience: Solicitor with 5+ years experience
Ash and other Law Specialists are ready to help you
Customer: replied 10 months ago.
Thank you yes I have given you a good rating Regards Alastair
Expert:  Ash replied 10 months ago.

Thanks. Ash