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Problems with Investor not paying the 20% owed!
propertyguy7
Posts: 26 Forumite
Hey!
My mother in law sold a property 5 years in Feb 2008 for £170,00. An investor bought it and at the time they agreed an 80-20 Deferred Payment scheme. The Investor paid £136,000 and they agreed an interest free loan for 5 years, which ended today. On the 28th Feb 2013 £34,000 was due to be paid. Needless to say no money has materialised. A letter has been rec'd today by my Mother in law sols stating:
"Due to the global financial climate since the purchase, the property has in actual fact reduced in value rather than appreciate and therefore it has not been possible to refinance"
5 Years my MIL has been waiting for her money and then this happens.
Does anyone know what can be done or what can be slavaged from this situation????
The investor is now elilgible to pay 4% above base per day for the loan, but this means nothing if you are not going to any payment whatsoever!
Your advise would be much appreciated!
My mother in law sold a property 5 years in Feb 2008 for £170,00. An investor bought it and at the time they agreed an 80-20 Deferred Payment scheme. The Investor paid £136,000 and they agreed an interest free loan for 5 years, which ended today. On the 28th Feb 2013 £34,000 was due to be paid. Needless to say no money has materialised. A letter has been rec'd today by my Mother in law sols stating:
"Due to the global financial climate since the purchase, the property has in actual fact reduced in value rather than appreciate and therefore it has not been possible to refinance"
5 Years my MIL has been waiting for her money and then this happens.
Does anyone know what can be done or what can be slavaged from this situation????
The investor is now elilgible to pay 4% above base per day for the loan, but this means nothing if you are not going to any payment whatsoever!
Your advise would be much appreciated!
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Comments
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Is the 34k registered as a charge on the property? If you are not sure then you can download the deeds from the Land Registry site to find out.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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The 34k is registered as a charge on the property!0
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Does the investor have any money?0
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Dont know if he has any money. By his actions I would hazzard a guess at no!0
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this could get messy fast so best get yourself a solicitor. If they genuinely don't have the money and can't raise finance you'll need to force them to sell the property, and that'll only happen by going through the courts
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Check to see what other charges are registered on property..
I'd pursuing this cheating crooked ****ole for all he is worth through the courts..
Was it bought in the name of a company or a human being??
Can you give us the first 3 characters of his surname??0 -
Was bought in his name: Mr. D. Arm
Will get my MIL to check with her sols about the charges and to start proceedings.0 -
Interest at 4% over base rate per day? Thats a hefty interest charge, over £10,000 per week.0
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Interest at 4% over base rate per day? Thats a hefty interest charge, over £10,000 per week.
I'm assuming that's a typo and it would be per annum against the £34k loan? So £4.20 per day.
Otherwise the investor has either made a massive mistake, or never intended to pay the final amount or be found!0 -
Just worked it out! You are right 4.5% per day on £34,000 = £1530 per day. Going to cost him a fortune if he drags it out! Just read my MIL's solcitors reply letter and he has been notified that "the loan attracts interest at the rate of 4% above Barclays Bank base rate after the 29 Feb 2013"
If it takes him 4 weeks to sort this out its going to cost him £47430! Really????? is this really possible????0
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