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ChrisB4147
ChrisB4147,
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I signed a side letter to a commercial loan committing to

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Hi, I signed a side letter to a commercial loan committing to undertaking a survey and any work required within 6 months. Due to COVID and subsequent cashflow difficulties I haven't been able to afford this. The side letter says failure to comply with the terms will be treated as a default event. The deadline is in one month. Do I have any room to negotiate?
JA: What steps have you taken so far? Have you prepared or filed any paperwork?
Customer: No
JA: Where is the property located?
Customer: Hull
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: No I don't think so?
Customer: replied 20 days ago.
More information. The loan was for the purchase of a property. The conditions apply to the property. A great deal of money has been spent on the property bringing it back into a useable state as this was necessary to start making it pay. The concern is regarding the condition to have a building survey and any recommended work completed within 6 months of the drawdown. This is going to be very difficult. The loan was under CBILs and covered legal expenses agency, broker, land registry fees and deferred payments. I am concerned that if the bank exercise their rights under the contract and say we have defaulted we may become liable for the repayment of these costs.
Hello,

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

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Hi, thanks for the question.  I’m Chris and I’m a Solicitor. I will be happy to assist you and hope to provide a full response as quickly as possible.

This is a question and answer service rather than an instant chat service, and I may not be able to reply immediately. However, rest assured that I am dealing with your question and will get back to you as soon as I can.

I’m sorry to hear about the situation you find yourself in. Is the loan secured against the property? I presume not if it was CIBILS?

I’m just following up on the above. Without some specific information is difficult for me to give a definitive answer but I hope a broad answer will be of assistance.

A sideletter is very much part of The agreement. It can be relied upon for any litigation purposes. It therefore is common affect, part of the agreement, with an obligation on you to do a certain aspect. If you do not do that then they do have the right to say that you have defaulted and therefore, depending on the wording of the agreement, calling the loan as a whole.

The agreement. It can be relied upon for any litigation purposes. It therefore is common affect, part of the agreement, with an obligation on you to do a certain aspect. If you do not do that then they do have the right to say that you have defaulted and therefore, depending on the wording of the agreement, calling the loan as a whole.

If it is unsecured they cannot deal with anything to do with the property other than get a judgement against you and there after looked in force it if it’s not paid. Naturally, it sounds as though it would be cheaper to get the survey done then it would to have to repay the loan in one lump sum if they call it in. I appreciate that it’s not always easyIf there is no money in the bank to pay for it. However, I would suggest that you try everything you can to ensure you comply with the terms.

I hope this is of assistance. If you have any thing you wish me to clarify any more specific

ChrisB4147,
Category: Property Law
Satisfied Customers: 190
Experience: Expert
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Customer: replied 14 days ago.
Hi Chris, I actually cancelled my membership to Just answer as it looked like I was not going to get a reply in time. I appreciate your advice is based on little information but I believe it to be the correct advice and it is actually what I am doing. Thank you for taking the time to respond. Kind Regards, Mike

No problem.  All the best.