How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Alex J. Your Own Question
Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3845
Experience:  Solicitors 2 years plus PQE
Type Your Law Question Here...
Alex J. is online now

A UK company as a charge on my house fro £250,000 I own

This answer was rated:

A UK company as a charge on my house fro £250,000
I own 25%of shares in an insurance company valued at USD 3,000,000
The Uk company are happy to release the charge of my house for a percentage of my shares in the insurance with a value pegged at USD 500,000
I cannot transfer my shares at present a due diligence is currently on the way with a view that 51% of the insurance company will be sold.
Can I do this via a contract sale with a deed of trust attaching
Customer: replied 2 years ago.
I want to enter into a contract with the UK to sales a percentage of my shares in exchange to release the charge.Because they know we are looking to sell 51% share of the insurance company.They want a deed of trust which i assume the role over their stake in the company with the beneficiary themselves
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Is it an option to give the company a charge on the beneficial interest in the shares? This would be less complicated than transferring ownership in the beneficial or legal ownership of the shares?
Kind regards
Customer: replied 2 years ago.
HI AJIf I understand youThe UK Company will enter into an agreement to release my charge in exchange for a % of the shares I hold in an Insurance
Company and to secure their rights I will give them a charge for the amount owing plus a margin equalling their beneficial interest.
Hi, Thank you. Instead of actually transferring any ownership in the shares you give them a legal charge for the debt (plus their margin - the margin could be valid consideration for changing the security). The charge is the same type of security as a charge over a house - if you give them a blank undated stock transfer deed and if you default they can take ownership of the shares. The advantage of the charge over actually transferring ownership of a percentage in the first instance is:(i) You do not need to worry about obtaining the insurance company's permission to make the share transfer;(ii) You can stipulate that charge and underlying debt obligation will only be repaid from the proceeds of the share sale.
Alex J. and other Law Specialists are ready to help you