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chatham-chamber
chatham-chamber, Advocate
Category: Law
Satisfied Customers: 13622
Experience:  LL.B, Pg.Dip, LL.M, M.B.A (Pending), Solicitor-Advocate. UK Practising Certificate issued by SRA., DIFC Courts Registered (Dubai)
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My property is being repossessed because there is a second

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my property is being repossessed because there is a second charge on it for a loan i defaulted on. there is not any equity on this property so can the lender still repossess bearing in mind the debt will not be settled and there will not be a positive outcome for any parties. thanks
Assistant: Where are you? It matters because laws vary by location.
Customer: lincoln uk
Assistant: What steps have you taken so far?
Customer: trying to reach a win/win for both parties but with no luck
Assistant: Anything else you want the Lawyer to know before I connect you?
Customer: no

Hi,

Thank you for your query. Kindly explain the situation further

Customer: replied 4 days ago.
i took out a business loan with the property as a guarantee. i defaulted on the loan and the bank put a settlement figure of £21000. the property with the 2nd charge on has not got the equity in it. i also have another buy to let with the equity needed so i offered that instead which the bank agreed to with a time limit in place. i broke the time limits several times and therefore the bank has not got their money and therefore have gone back to the original property to repossess. however, the property i offered with the equity in has now sold stc and the solicitor is confident of funds being released before xmas. i have mentioned this to the banks solicitors but are not interested and are taking me to court next week. i do not understand why they are forcing me to sell the property with no equity and make the tenant homeless when the money can be paid to them in a few weeks from the sale of the other property. it does not feel fair when there is a win/win for both parties. where do i stand? thanks

Hi,

Thank you for the additional information. You cannot compel the lenders solicitors to agree top this, however, if you are due in court, you can get the Solicitor acting for you on the conveyance to provide a letter stating that they are dealing with the sale and expect to be in a position to complete by a certain date. The letter should also state that there is sufficient funds to discharge the liability in the existing debt.

The courts should take this into consideration.

I hope this answers your question. If so, kindly rate the answer and provide feedback.

If you have any further questions, please do not hesitate to ask.

Many thanks,

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