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Jamie-Law
Jamie-Law, Solicitor
Category: Law
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Experience:  Solicitor
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I have my own business and the bank wants to put a security

Resolved Question:

I have my own business and the bank wants to put a security charge on a house that I own as we need to temporarily extend our overdraft facility. My mother is the tenant and the bank sent a letter to MY address, but to her name with a form for her to sign. Can the bank do this legally? I don't want my mother knowing personal business information.
Thanks.
Jane
Submitted: 1 year ago.
Category: Law
Expert:  Jamie-Law replied 1 year ago.

Hello Jane my name is ***** ***** I will help you.

Did they say they were going to do this?

Customer: replied 1 year ago.
I don't know what you mean? "Did they say they were going to do this"?
If you mean did they ask me if they had my permission to write to my Mother at MY address, then no, definitely not!
We don't need the extended overdraft now as we are in the middle of a 6 figure insurance claim with our clay supplier, so the extended overdraft is not now needed as we will be recieving funds very soon. However the bank are still putting pressure on me to sign the house as security for them. As I have not responded I think they are trying to get my Mother to sign, although I have told the bank manager that we do bot need the extended overdraft facility anymore, therefore the bank does not require the house that my Mother lives in as security. Yesterday I received the letter addressed to her at my home address. Many thanks. Jane
Expert:  Jamie-Law replied 1 year ago.

Its not that your mother will sign the guarantee, it is not that.

If there is a tenant in the property then they may have a right to remain in case the bank takes possession.
What they want to your mum to sign is in effect that if you default and they seek possession, your mother postpones her right to remain.

They need to do this of all adults over the age of 18 in the property.

It is quite normal and would apply even if you went for a mortgage, they would apply for people living with you to postpone the rights.

So that is what the document is for. But if you dont need the overdraft then you dont need to sign the PG or provide that security.

But they should have said they were doing to do this before they did. But is it unusual? No

Can I clarify anything for you about this today please?

Customer: replied 1 year ago.
Many thanks for the email, but it just really annoyed me as what if I hadn't opened the letter and just gave it to her and if she were to have dementia she may well have just signed it and set it back to the bank! Plus she lives on her own. I just feel that it was a very sneaky/crafty way of trying to get either, my, my husband or my Mothers signature!
Many thanks Jamie.
Jane
Expert:  Jamie-Law replied 1 year ago.

Yes I understand and agree. But even if they had a signature it does not bind you to any security, just postpones their rights

Does that clarify?

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