Hello everyone, I am new to this site and have a problem that you may be able to help with:
I purchased a commercial property in 2006 and went on to operate a business there until 2011 when I stopped due to ill health. I rented the property out at the end of 2011 on a two year lease. I had a good repayment history with the mortgage on the building, often over paying substantial amounts. I went in to see my account manager at the time of leasing the property out and informed them that it was to be let out. I wanted advice as to the general way forward as I had a £20,000 business overdraft which was at the top end of its limit and wanted it to be consolidated into the mortgage amount (£130,000) so I had just one payment to make each month. She told me she would find out and let me know.
Due to health and financial issues I started to become unable to pay the mortgage or business overdraft (despite the fact that I was receiving rent monies of £900 per month). I did recieve further correpondence from my Bank three or four months later when I started having telephone calls. I explained that I was still waiting to hear from my acccount manager but had not done so. The telephone calls continued and I must admit I did dig my head in the sand as I was not well at the time and could not deal with the stress.
To cut a long story short, a letter came through in September 2012 warning of repossession proceedings and giving me the option of either a repayment proposal or asking if I would sell the property. I phoned them up and asked them again to consolidate the business overdraft and mortgage but they did not seem overly interested in helping me. It appeared to me that because my mortgage rate was so low (2%) that thery werent making enough money from me and wanted me off their books. They did not say this of course, but thats how I felt. I gave them my proposals over the phone £400 per month but they said this was unacceptable and the next minute I was told that the Receivers were now involved. I then offered to pay £1200 per month (way more than the actual mortgage payment of £750 and the minimum payment of the business overdraft of £300). All of this fell on deaf ears as it was obvious that they were taking the building. They also kept saying that I did not inform them that I had rented the property out (despite the fact that I had indeed told my account manager in the branch). The Bank then went on to issue a possession order on the basis that I had failed to tell them that tenants were in situ.
And so here we are, October 2014. the building was sold at auction and I have been issued a final completion statement. The Bank are claiming that I owe the total of £15,295.68. The property sold for £160K. The huge interest on the business overdraft, plus the overdraft amount itself and the mortgage equated to circa £163K. The Receivers costs, estate agent costs and other 'fees' then took the shortfall to £15,295.68. I am not working due to ill health and am on ESA Support Group and DLA due to my health condition. Barclays Bank have asked for my repayment proposals and have sent me an income and expenditure form to fill out. I dont think I should have to pay the shortfall - they were no help to me whatsoever during this whole matter, despite my [previously good history of payments and the fact that I really tried to sort out adequate repayment proposals from the outset. I just dont know what to do now. Do I complain about the matter in which this has been handled or do I have no grounds to. What is the best way forward? Also, do I list my DLA payments as income on the I & E sheet? I am sorry this post is so long but I wanted to give you a good picture of events.
I purchased a commercial property in 2006 and went on to operate a business there until 2011 when I stopped due to ill health. I rented the property out at the end of 2011 on a two year lease. I had a good repayment history with the mortgage on the building, often over paying substantial amounts. I went in to see my account manager at the time of leasing the property out and informed them that it was to be let out. I wanted advice as to the general way forward as I had a £20,000 business overdraft which was at the top end of its limit and wanted it to be consolidated into the mortgage amount (£130,000) so I had just one payment to make each month. She told me she would find out and let me know.
Due to health and financial issues I started to become unable to pay the mortgage or business overdraft (despite the fact that I was receiving rent monies of £900 per month). I did recieve further correpondence from my Bank three or four months later when I started having telephone calls. I explained that I was still waiting to hear from my acccount manager but had not done so. The telephone calls continued and I must admit I did dig my head in the sand as I was not well at the time and could not deal with the stress.
To cut a long story short, a letter came through in September 2012 warning of repossession proceedings and giving me the option of either a repayment proposal or asking if I would sell the property. I phoned them up and asked them again to consolidate the business overdraft and mortgage but they did not seem overly interested in helping me. It appeared to me that because my mortgage rate was so low (2%) that thery werent making enough money from me and wanted me off their books. They did not say this of course, but thats how I felt. I gave them my proposals over the phone £400 per month but they said this was unacceptable and the next minute I was told that the Receivers were now involved. I then offered to pay £1200 per month (way more than the actual mortgage payment of £750 and the minimum payment of the business overdraft of £300). All of this fell on deaf ears as it was obvious that they were taking the building. They also kept saying that I did not inform them that I had rented the property out (despite the fact that I had indeed told my account manager in the branch). The Bank then went on to issue a possession order on the basis that I had failed to tell them that tenants were in situ.
And so here we are, October 2014. the building was sold at auction and I have been issued a final completion statement. The Bank are claiming that I owe the total of £15,295.68. The property sold for £160K. The huge interest on the business overdraft, plus the overdraft amount itself and the mortgage equated to circa £163K. The Receivers costs, estate agent costs and other 'fees' then took the shortfall to £15,295.68. I am not working due to ill health and am on ESA Support Group and DLA due to my health condition. Barclays Bank have asked for my repayment proposals and have sent me an income and expenditure form to fill out. I dont think I should have to pay the shortfall - they were no help to me whatsoever during this whole matter, despite my [previously good history of payments and the fact that I really tried to sort out adequate repayment proposals from the outset. I just dont know what to do now. Do I complain about the matter in which this has been handled or do I have no grounds to. What is the best way forward? Also, do I list my DLA payments as income on the I & E sheet? I am sorry this post is so long but I wanted to give you a good picture of events.
Commercial property repossessed now facing mortage shortfall claim from bank
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