Secured Lender. Is it Legal?

amibeingrippedoff_2

Just when i think things cant get any worse theres another twist to my story!

If a lender takes security over a plot of land for a development loan he was providing, provides a part of it and pulls the plug for no reason (breaches contract) and looks to repossess the land for what funds he has provided and then it is found that the lender only a few weeks after providing the first stage funds sells the security he held to another individual for the full amount of loan he was to provide me. Is that legal?

Lets say he provides £20k for first stage of two stages due under contract on 1st Feb.
He then on 21st Feb sells the security he has taken over the land for £60k to an individual outside the UK without ever telling me (Land Owner) This would be the full amount i would pay back to him if he would have provided the second stage funding under the contract!
He continues to refuse to release any further funds under the contract with me unless i agree to a new contract being drawn up to include his new terms he wanted which inevitably would cost me £thousands more than the original contract and which i certainly did not agree to

To cut a long story short, there was much back and forth including meetings to try and resolve the issue of his refusal to release the funds under the contract for months which was during the time he didnt even hold the security over the land

The thing is, he even used the same solicitors to do the sale of the security to the other other individual who lives outside the UK.While the same solicitor was basically telling me to accept his new terms or court action with be taken. She was knowingly trying to resolve an issue between me and her client while her company dealt with the sale of of her clients security he held over my land to another individual without even telling me.

When he realised i would not bow down to his requirements the short term contract expired and he had to go back and purchase the security back from this guy so he could take court action to repossess for his £20k + fees back

Is it legal what he done? what if that other guy refused to sell him back the security?

I did wonder why his court writ was set up to try and not only repossess the land but also to get the outstanding balance back in cash from me personally. The solicitor dealing with this doesnt have this information yet until i go see him with the documents from land title registers but i am sure he will now understand why they tried it on and what they were up to.

Just thinking that if i had the funds to pay him back at the end of the contract term and wanted the security moved from the land immediately, he couldnt have done it as he didnt hold the security at that time.
Comments please

PS A happy new year to you all

amibeingrippedoff_2

just wondering if i should have asked the question.

Can a lender who has security over my land sell the security to someone else without asking me

CLAPTON

amibeingrippedoff wrote: »

just wondering if i should have asked the question.

Can a lender who has security over my land sell the security to someone else without asking me

depends what your contract says.

BonkersBonkers

IMO yes.
It happens fairly frequently eg a loan company withdraws from a certain market and sells the loan book to another lender.

amibeingrippedoff_2

BonkersBonkers wrote: »

IMO yes.
It happens fairly frequently eg a loan company withdraws from a certain market and sells the loan book to another lender.

I dont understand how it could all be above board.

The lender only produced a third of the original contract amount, he then sold the security for the full contract amount to an individual not a company. If he had provided the full amount of funds under the loan contract then yes, he may be able to sell on the security to another company as he had provided all money under the contract and it wouldnt really matter who held the security or who gets paid back.

He handed out £20k to me then sold the security i gave him which was at the time for £20k as the security was for what was outstanding at any given time. He then brings in £60k for the sale of security and is then effectively £40k net in profit and gaining interest while charging me interest on the amount he actually gave me.

If after he sold the security something went seriously wrong with his company, I would have been liable for £60k to the other guy he sold it to and all i would have got from the deal would have been £20k to me that is a ridiculous return.

What about the fact he was dealing with me trying to resolve his own problems about further release of funding when he didnt even have any interest in the land, he didnt hold any security

pvt

This doesn't make a lot of sense. I think you're muddling up what a "security" is.

If you are the land owner, then the land is yours. A lender would take a "charge" over the land when they lend you money, as their security. The land cannot realistically be sold by you without the charge being settled, so the lender's money is secure.

It is normal, as Bonkers says, for a lender to sell on their loan, and with it goes the "charge" that is held over your land.

The only time the lender would be able to "sell" the security would be if you fail to service the loan, and they apply to repossess the land (in effect, force a sale to recover their money). But they would have to go through court and jump hoops and huddles in order to do that.

The person buying the loan off the original lender and inheriting the "charge" that secures it, would have to honour the original terms of the mortgage.

Edit - I think I see what you are saying now. Are you saying that the charge on your land is for £60k, but you have only had £20k of it? If so, I think you need to take the mortgage deed to a qualified solicitor and get his opinion on this. It is normally the case that the lender has to show what has actually been advanced and still owed, they aren't automatically entitled to the full value of the charge on the land.

Looking at this, either you or the person who bought the loan off the original lender has been scammed out of £40k. And you need expert advice in order to establish who it is.

amibeingrippedoff_2

pvt wrote: »

This doesn't make a lot of sense. I think you're muddling up what a "security" is.

If you are the land owner, then the land is yours. A lender would take a "charge" over the land when they lend you money, as their security. The land cannot realistically be sold by you without the charge being settled, so the lender's money is secure.

It is normal, as Bonkers says, for a lender to sell on their loan, and with it goes the "charge" that is held over your land.

The only time the lender would be able to "sell" the security would be if you fail to service the loan, and they apply to repossess the land (in effect, force a sale to recover their money). But they would have to go through court and jump hoops and huddles in order to do that.

The person buying the loan off the original lender and inheriting the "charge" that secures it, would have to honour the original terms of the mortgage.

Edit - I think I see what you are saying now. Are you saying that the charge on your land is for £60k, but you have only had £20k of it? If so, I think you need to take the mortgage deed to a qualified solicitor and get his opinion on this. It is normally the case that the lender has to show what has actually been advanced and still owed, they aren't automatically entitled to the full value of the charge on the land.

Looking at this, either you or the person who bought the loan off the original lender has been scammed out of £40k. And you need expert advice in order to establish who it is.

Yes! you are right in saying that the charge over the land is for £60k and also at the same time the lenders solicitor was threatening to repossess the land and advising that all her fees would be added to the outstanding balance as well as court fees.
This was all being laid out to me even though the lender held no security over the land at the time as the lender sold it.
To think that the solicitor dealing with it also dealt with the original lender and this other guy for both the sale and buying of the charge/security is unreal.

Looking at it from my perspective is, effectively the charge was sold for £60k to a third party and the lender was also looking for his £20k from me at the same time. I did try to offer back most of the £20 and further monthly payments to release the security so i could go to another lender as nobody else would touch it due to an existing charge hanging over it.i was told by the lender, and confirmed by the solicitor that it would be acceptable, even though the solicitor, in my opinion had no right to accept any money for her client as he wasnt owed any money due to him selling the charge already for £40k more than what he gave me.

If i would have given back the full £20+ fees owed to get the charge/security removed, there was never a gaurantee it was going to be removed as the lender had no say in it as he didnt hold the security. What if this other guy said NO i dont want to sell the charge back unless you pay me £100k £200k?

As i said earlier, the original charge documents i signed at solicitors was a charge for the outstanding balance at any given time, not a charge for the whole amount the lender was going to supply, but he just sold the charge for the whole amount.

opinions4u

Still completely lost me.

poppasmurf_bewdley

Seriously, this forum is no place to discuss a £60k deal. See a solicitor.

amibeingrippedoff_2

poppasmurf_bewdley wrote: »

Seriously, this forum is no place to discuss a £60k deal. See a solicitor.

Seriously? whats the limit and who sets it?

I am sorry you feel i shouldnt be posting about my issues on here due the amount in question but please rememeber nobody is forcing you to post here. What makes you automatically think i have loads of money to go to a solicitor? Forums may be the only place i can get help to defend myself in court?

Again, i never asked you for advise on whether i should post my problems on here or not! so please dont give me what i didnt ask for!

gb12345

amibeingrippedoff wrote: »

Seriously? whats the limit and who sets it?

I am sorry you feel i shouldnt be posting about my issues on here due the amount in question but please rememeber nobody is forcing you to post here. What makes you automatically think i have loads of money to go to a solicitor? Forums may be the only place i can get help to defend myself in court?

Again, i never asked you for advise on whether i should post my problems on here or not! so please dont give me what i didnt ask for!

But you need advice on whether you are being scammed or not and no one on this forum is going to give you that advice (and most of us are not qualified to any way) - so all you are going to get are opinions, which are really worth nothing. Anything I tell you will have no weight or relevance in court and if it does go to court, for this level of money you will need proper legal representation or you could end up owing a lot more than you currently do if you lose the case.

If you want to avoid being scammed or find out the legality of your situation then you need to stump up some cash for proper legal advice (or maybe a free 1/2 consultation or a claim on your house insurance if you have legal cover).