Late wife's commercial loan problem

[Streetwise]

Re: Late wife's commercial loan problem

Well look's like this is the start of it,business recoveries for the bank have sent a letter asking for the full sum to be repaid,they inform me that any held previous agreement has now lapsed,they are asking for us to remortgage which we can't, or sell the properties to pay them back,no mention of court yet,but they still have not responded to my letter to pay them back which i sent on the 9th of August recorded delivery,or the S.A.R,which was sent recorded delivery the same day,both letters signed for.Still making payments to the account,never been defaulted.Anybody got any ideas on how to fight this.

[Streetwise]

Re: Late wife's commercial loan problem

If your property was jointly owned by you and your partner, you would have had to sign both the application and the legal charge.

If you did not, then you may be able to have the charge removed. It would be wise to get a solicitor to do this.

If the above is the case, then the only charge would be on the 2 flats. Have these already been transferred to your name under the conditions of the will? If they have, then I would imagine that the loan has been transferred to you also. If not, it would be a bit strange to have you as an owner, with the charge on the flats against your late partner. I don't see how you would obtain probate, with a charge against the flats.

If you are not named as an applicant on the loan form, they will not be able to take you to court and obviously not your late wife.

The first para is important to answer.

Hi and thanks for looking in,the property had nothing to do with me it was in the name of my wife and her business partner.

[vint1954]

Re: Late wife's commercial loan problem

If your property was jointly owned by you and your partner, you would have had to sign both the application and the legal charge.

If you did not, then you may be able to have the charge removed. It would be wise to get a solicitor to do this.

If the above is the case, then the only charge would be on the 2 flats. Have these already been transferred to your name under the conditions of the will? If they have, then I would imagine that the loan has been transferred to you also. If not, it would be a bit strange to have you as an owner, with the charge on the flats against your late partner. I don't see how you would obtain probate, with a charge against the flats.

If you are not named as an applicant on the loan form, they will not be able to take you to court and obviously not your late wife.

The first para is important to answer.

[vint1954]

Re: Late wife's commercial loan problem

Streetwise, was the property jointly owned by you and your partner and did you sign the application and charge consent?

[Streetwise]

Re: Late wife's commercial loan problem

And if the Royal Bank of Scotland,get's nationalized that mean's I owe the whole of Britian the money.

[Streetwise]

Re: Late wife's commercial loan problem

Just a quick one for some thought,if this goes to court would the judge just say well you have the original agreement,or would he ask the bank what are you relying on to enforce this agreement.

[Streetwise]

Re: Late wife's commercial loan problem

Hi
we put it in the hands of a solicitor, but apparently they did not have the right to terminate the agreement. It was a few years ago now, but i think they sent a notice saying they wanted full repayment of the loan when they heard of my partners death, the solicitor pointed out that they had no contractual right to do so.

GT

Thanks for that,and thanks for dropping in,this agreement is from 2007,and with the same bank,regards Streetwise.

[gravytrain]

Re: Late wife's commercial loan problem

Sorry to bother you,but you say they tried to recall the loan,how did you stop them recalling it,I have a Formal Demand and never a payment missed.thanks again.

Hi
we put it in the hands of a solicitor, but apparently they did not have the right to terminate the agreement. It was a few years ago now, but i think they sent a notice saying they wanted full repayment of the loan when they heard of my partners death, the solicitor pointed out that they had no contractual right to do so.

GT

[Streetwise]

Re: Late wife's commercial loan problem

Hi
I was in a similar position with a Nat West business loan, my partner died and they tried to recall the debt. Even though i was still trading.

As Alangee says fortunately there was no facility within the agreement for them to terminate the agreement in this way so they were unable to enforce.

I still have no idea why they wanted to recall a debt that was being repayed and never had any missed payments.

GT

Sorry to bother you,but you say they tried to recall the loan,how did you stop them recalling it,I have a Formal Demand and never a payment missed.thanks again.

[gravytrain]

Re: Late wife's commercial loan problem

So how did you come to an arrangement to pay them, that was acceptable to all parties,thanks for looking in.

HI

The contract just continued as it had before, and I continued the contractual repayments on the loan.

The loan was secured on our business premises and we were just a simple partnership not a limited company.

GT

[Streetwise]

Re: Late wife's commercial loan problem

Hi
Our agreement had a death of debtor clause, but the solicitor we had said that it would not apply as the loan was in joint names and the business was still trading.
Don't know if that helps. Perhaps someone should look at the contract?

GT

So how did you come to an arrangement to pay them, that was acceptable to all parties,thanks for looking in.

[gravytrain]

Re: Late wife's commercial loan problem

So what Happened then?

I continued to trade and make repayments on the loan, when i became disabled the insurance paid off the balance some years later.

GT

[gravytrain]

Re: Late wife's commercial loan problem

Hi
Our agreement had a death of debtor clause, but the solicitor we had said that it would not apply as the loan was in joint names and the business was still trading.
Don't know if that helps. Perhaps someone should look at the contract?

GT

[Streetwise]

Re: Late wife's commercial loan problem

Hi
I was in a similar position with a Nat West business loan, my partner died and they tried to recall the debt. Even though i was still trading.

As Alangee says fortunately there was no facility within the agreement for them to terminate the agreement in this way so they were unable to enforce.

I still have no idea why they wanted to recall a debt that was being repayed and never had any missed payments.

GT

So what Happened then?

[Streetwise]

Re: Late wife's commercial loan problem

What does the default notice say regarding the breach, Streetwise, and how long does it give you to remedy?

It doesn't say anything doesn't state any breach just came in the envelope with the Formal Demand,doesn't give me anytime to remedy it just wants my proposals for repayment with in 17 of the date of the letter which is dated 24th July 2012 arrived 27th of July 2012.