Does anyone understand bridging loans?

[woodyvale]

I own a flat, while I was ill and then having to stay away due to shielding, extremely clinically vulnerable and all that, the freeholder of my building sent a bill to an email address I couldn't access and then got a county court judgement registered in April. I didn't even know about it until 10 days ago. They had already started a separate action for the same amount which I did know about.

Before this my credit was perfect for 7 years. They are trying to force me to sell my flat for a debt of a few thousand pounds which I had disputed. As I have had to shield (although I do admit to going out a few times to the park as I was going crazy indoors) and I was a contract worker my income has disappeared and I have been living on savings, and now a CCJ means that I can't borrow. So I can't pay the debt off.

So I have been offered a bridging loan but I am told it is a private bridging loan, via a broker. I would be paying ?2890 in fees and 1.1% fixed rate simple interest on the loan per month that I kept it, exit at most in 12 months.

Does that sound right? Obviously it is a high rate of interest and they are charging 3% arrangement fee. They will put a charge on the property obviously, it would be a secured loan.

This would at least allow me to sell the property myself. The freeholder is a shark and a crook.

Could anyone advise please, how a private bridging loan works? I simply cannot afford to pay a lawyer to look into this, and there is just nowhere I can get advice from. I will soon be a pensioner and the flat represents everything I have earned over my entire life. If there is a forced sale that the shark freeholder has control of, they will sell it at huge undervalue to I guess their contacts or themselves indirectly and I will be left with next to nothing. I have no way at this time of life that I can possibly recover from this.

Although renters are protected at the moment, and mortgage payers, leaseholders who have even small service charge debts are just not protected, and this was done completely behind my back while I was first very ill and then shielding. Leaseholders can have their property repossessed.

If there are any knowledgable financial advisors or lawyers out there who could possibly give me some advice I would be enormously grateful. Very exhausted and stressed and really in need of sound advice. Please PM If you can help. I realise it would be totally informal advice and not given in any professional capacity.

[KidKruger]

woody vale in what format did the freeholder try to force you to sell your flat ?

Or are you actually saying that may be the financial consequence of what is going on (i.e. no-one is trying to make you sell your flat) ?

I'd get in touch with CAB, get legal advice and try opening a dialogue with landlord explaining circumstances, making sure you are CC'ing CAB and/legal body - so you have a record of trying to be reasonable.

Meanwhile why not file a case at small claims court to get some reasonable input.

What options have you advised the landlord so far, so he/she knows you're intent on paying when you can ?

[Cyclemonkey]

I would get advice before you do anything, a lease forfeiture over a debt of a few thousand pounds sounds wrong. Have you tried to arranged a payment plan with them? You could sell the flat with the outstanding debt with an agreement to settle the debt once you complete (eg use some of the proceeds of the flat sale to do this)

Also did they send all communications to this email address you could not access? You have a responsibility to ensure you inform them if your contact details change but sending official communications by email only seems a bit wrong.

I am a director of our freehold company and we tend to send two chasing letters for outstanding charges and then send the debt to

Solicitors for collection. It would take a huge debt or no engagement from the lessee for a very long time to get to the point of lease forfeiture.

[bobbsy]

I may be wrong, but I thought post was still the legal method for communication in matters such as this, not email, so it may be that you have not been officially advised of the bill. Someone with proper legal knowledge will no doubt know!

[Abe_froeman]

Ask the citizens advice bureau for some help on getting the original judgment set aside on the basis that you never received the bill or the court papers (assuming you never received them)

[Jules-and-Boo]

As Abe said, apply to court for judgment to be set aside. It's easy. Just Google it, you don't need a solicitor.

Do it quickly though.

What's the bill for? We're you expecting it? Can you dispute it?

In order to enforce a payment, eg sale of your flat, the freeholder would need to apply to the court.

There's an organization called Lease. They are free to talk to and you just book an appointment online. They are actually really amazing. Just Google Lease

[sally buying]

You have not mentioned what the bill/s or for.

Major works or Service Charge or something else.

From memory there is a defined path that freeholders have to follow before sale of your property can be made.

If you already knew about the bill and done nothing you might be on a sticky wicket.

You should have received first/second and final demands re this debt then if you have not replied or disputed the bill the freeholder should have contacted your mortgage lender for payment which is normal procedure or you could have contacted your lender yourself.

Your mortgage lender would then have contacted you asking for an explanation of how the debt arose and if you had sufficient equity in the property and would you be in agreement for the debt to be paid off and the mortgage re adjusted.

If you have received these letters and ignored them you are in trouble. You would also have received a court appearance date. These letters would have been issued over many months not one and then court.

As I mentioned these steps have to be followed.

If you have been paying the mortgage on a regular basis and bearing in mind the current situation I would have thought you could have borrowed additional funds.

It maybe the case with past rising house prices you have already borrowed against the property and the mortgage company have said no.

The bottom line is if you have just ignored any correspondence you are in trouble. If the freeholder has not follwed these steps the court should be informed.

Your mortgage lenders are the people you should speak to.

Hope you can sort this out