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Matt Jones
Matt Jones, Solicitor
Category: Property Law
Satisfied Customers: 671
Experience:  I am a qualified and practicing Solicitor with over 7 years post qualification experience
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I borrowed £330k from a businessman some years ago which was

Resolved Question:

I borrowed £330k from a businessman some years ago which was intended to be used to buy a property, refurbish it and re-sell.
I used some as a deposit to buy the property in question and the remaining was used to put down as deposits on some off plan properties. Unfortunately the time was just as the recession started and the bank decided to withdraw their mortgage offers which left me unable to complete on the properties. I consequently lost £100k.
At the same time I had £100k invested in the stock market which plummeted and this was also lost. I decided to chase my losses by investing £200k back in the stock market and slowly but surely the money dwindled to nothing. So I was £400k down and was only able to repay £60 back to the investor. I currently owe him £270k.
He is currently in bad health and has passed his business interests worth £50M to his two children. They are now taking steps to recoup the monies owed to him from various individuals including myself. I am also in bad health and currently not able to work. I have 3 x mortgaged properties, one which I live in, that have equity of £300k. They are looking to put a 2nd charge on these properties and force the sales.
Although I do not dispute the money that I owe, I would like more time to work out a way of paying them back without losing the only assets that I have.
3 Questions:-
How easy is it for them to place a charge over my properties and sell them ?
Can I get a family member to put a 2nd charge on the properties in the meantime as I also owe money to them ? This will leave little equity for anyone else to put a charge on and will give me time to plan a way of paying my debts back whilst safeguarding the properties.
Are they able to freeze my bank accounts ?
Submitted: 2 years ago.
Category: Property Law
Expert:  Matt Jones replied 2 years ago.
Matt Jones :

HI I will try and help

Matt Jones :

Was there some written agreement detailing when and how the loans should be repaid?

Expert:  Matt Jones replied 2 years ago.
Hi I understand you couldn't see my reply, hopefully now you can. Look forward to hearing form you
Customer: replied 2 years ago.

Hi Matt, There was no written agreement just verbal. There was no specific time frame for repayment, just when the property was finished and interest would be between 10-20%

Expert:  Matt Jones replied 2 years ago.
OK thanks as to your three questions
How easy is it for them to place a charge over my properties and sell them ?
A - they would need to issues proceedings firstly, then obtain judgement and then apply for a charging order. This takes quite a few months to get to this point. There is also your argument that there is nothing in writing and therefore no definitive time to repay. As you say you don't dispute you owe the money but is there not an argument that your Uncle would have given you a reasonable repayment plan? if so this is an argument to advance.
Can I get a family member to put a 2nd charge on the properties in the meantime as I also owe money to them ? This will leave little equity for anyone else to put a charge on and will give me time to plan a way of paying my debts back whilst safeguarding the properties.
A - anyone can put a 2nd charge against land, if the company with the first charge gives their consent as often they will have a restriction on the title preventing a second charge being registered
Are they able to freeze my bank accounts ?
A - again they would have to just judgement first and they apply for enforcement action. One such order is a freezing injunction, so if you have monies in a bank account this is a possibility, however it is by no means a guarantee.
Matt Jones, Solicitor
Category: Property Law
Satisfied Customers: 671
Experience: I am a qualified and practicing Solicitor with over 7 years post qualification experience
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