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INC Law
INC Law, Solicitor-Advocate
Category: Law
Satisfied Customers: 15911
Experience:  LL.B, LPC, LL.M, Pg.Dip, Solicitor-Advocate. UK Practising Certificate issued by SRA., DIFC Courts Registered (Dubai)
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We are a Ltd building company who started a development of 2

Customer Question

We are a Ltd building company who started a development of 2 houses in March 2019. We were offered a loan that paid in arrears in instalments and all was fine until the finance company appointed receivers in Feb 2020 prior to th e end of term of of the loan citing that no work had been done on the properties and there was no insurance, neither if which were true. No work was then carried out on the properties by the receivers appointed trades until May 2020. In June we were told that the build would be ready for occupation in 6 weeks from then. The build wasn't completed until the October/november then there were boundary problems. We are still waiting to be contacted by the receivers to confirm both houses have been sold, but communication from them has been very sparse. We have put our own money into this development and now it looks like we aren't going to get anything from it due to interest costs. Advice would be appreciated please. We want to close the company down and draw a line under it so that we can move on.
JA: What steps have you taken so far? Have you prepared or filed any paperwork?
Customer: No we have all the communication and original quotes but the receivers have allowed the build to go way over budget! It's been taken out of our hands.
JA: Have you talked to a lawyer about this?
Customer: Not yet. We were looking to see if we should close the company first or seek a solicitor first
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: This was a project that was supposed to give us finance to buy a property mortgage free. My son who is a partner with my husband and i has put his own money in as well as ours and had a mental breakdown through it. We seem to have lost everything.
Submitted: 17 days ago.
Category: Law
Expert:  INC Law replied 17 days ago.

Hi,

Thank you for your query. I am a Solicitor-Advocate in the UK and will be assisting you with your question today.

Unfortunately, your question is not a straight forward one and one which cannot definitively be answered without seeing the security documents in respect of the loan.

On the face of it, you may have a Bridging Loan with Development Finance.  Such a loan would have a monitoring surveyor appointed who would make regular visits to the property and report back to the lender.

If you feel that the Receivers have not acted correctly, you would have the right to complain against them.  You will first need to find out which professional body they are a member of.  Details of how to complain can be found at the following link: https://www.insolvencydirect.bis.gov.uk/ExternalOnlineForms/InsolvencyPractitionerComplaint.aspx

Lastly, I would suggest you look into whether you were mis-sold the loan ion the first place by your Broker or financial advisor.

I am sorry if this was not the answer you were expecting.

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

many thanks,

Customer: replied 17 days ago.
Thankyou for your reply. How do we investigate a miss sell of the loan?
Expert:  INC Law replied 17 days ago.

Hi,

Kindly see following link: https://lexlaw.co.uk/mis-sold-bridging-loan-property-lending-finance-advice/

They may be able to assist.