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quo1
Starting Member
1 Posts |
 Posted - 30 January 2009 : 12:02:20
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How is the beneficial interest calculated on your home?
Our mortgage is 192k. Value based on similar property recently sold on Land Registry is £285k.
Our actual debts are less than 'equity' (all debts add up to £45k)BUT we have a shop lease (with 9 years remaining) with full, personal guarantees.
The rent is going up (currently fighting a review) from £32,500pa to around 40k pa plus business rates of 16k pa.
Turnover has halved over the past 14 months and we are subsidising the shop from my work as a freelancer (which would become our main income if we left the premises)
We have tried to negotiate a surrender (LL is property unit trust and have refused), we are on the market to try and re-assign (no interest as yet)and have worked out that we may lose MORE trying to carry on with shop than leaving premises and going BR.
A family member could help with about £50k in beneficial interest, but raising more would be a problem.
We are not in arrears with any VAT/Tax/other bills incl mortage.....but the shop is no longer viable, even at the current rent.The losses could end up dragging the whole thing down anyway as freelance work is variable and may not always cover the trading losses.
Any advice would be much appreciated. |
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lennon
Starting Member
16 Posts |
Posted - 30 January 2009 : 12:19:44
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Thanks for the reply. |
Edited by - lennon on 20 April 2009 00:17:57 |
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lennon
Starting Member
16 Posts |
Posted - 30 January 2009 : 12:21:59
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| Sorry, I seem to have 2 user names going??? Lennon and quo are one and the same |
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John
New Member
United Kingdom
73 Posts |
Posted - 30 January 2009 : 16:32:53
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Hi
from the details on your post this is a complex insolvency issue so I would also recommend you call Paul at Reviva whose number can be found through the web link at the foot of each of his posts. |
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RHB
Senior Member
1159 Posts |
Posted - 30 January 2009 : 19:21:03
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| I think if your debt is less than your assets then you can't be deemed insolvent & therefore can't go bankrupt |
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lennon
Starting Member
16 Posts |
Posted - 30 January 2009 : 19:24:15
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Edited by - lennon on 20 April 2009 00:18:46 |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 30 January 2009 : 19:47:10
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Hi Lennon
Tenon Recover ( head office at Finsbury Circus London ) is run by Robert Beat, but you will probably speak to the team up north, many of the team came from UNITY who were an IVA company. Robert is quite a nice guy but Tenon would only be able to advise on theliklihood of you successfully negotiating the debt via an IVA.
There are 2 types of IVA that they will offer.
The first one will be based on you continuing to trade in the business and making a contribution towards the debts over 5 or 6 year period with a a further contribution towards the debts made from the house in the final year of the IVA.
The key thing with this IVA is your confidence in the businesses ability to continue to provide an income at consistent levels. YOU DO NOT WANT TO BE ENTERING A CONTRIBUTION IVA IF THERE IS ANY DOUBT ABOUT YOUR FUTURE EARNINGS POSITION.
The second option for an IVA is a ONE PAYMENT IVA, which they may offer you. This is based on a one time payment to creditors based on external funds. The funds may come from either the house sale ( sometimes they will allow 9 - 12 months for the funds to be released from a sale) , or from a third party buying your Beneficial Interest in the house by way of a contribution to the IVA.
PLEASE NOTE
This is unlikely to to be successful because they would need to agree some level of debt with the landlord ( time property is left unlet - and it is tricky to let anything these days).
Also potentially 9 years of liability could be well over 100k and this would put the landlord in the position of controlling the voting for any IVA.
YOU HAVE OTHER OPTIONS.
Negotiated Settlements - you are unlikely to get advice about these on monday as the Insolvency Practitioner would not practice these.
Negotiatioon with the Landlord - possibly with a face to face meeting with a third party we may be able to renegotiate the position. We have closed 9 businesses already in January and in over half of them as soon as the landlord realised that insolvency and an empty shop was a REAL possibility then they started to change their tack completely.
There are really more options than you think.
Also if you eventually decide that Br is the right solution then as a business owner the processes are different and you need to be in control.
just food for thought.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
Real People ..... Real Debt Solutions
www.revivauk.com |
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lennon
Starting Member
16 Posts |
Posted - 30 January 2009 : 22:43:11
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Edited by - lennon on 20 April 2009 00:19:33 |
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lennon
Starting Member
16 Posts |
Posted - 30 January 2009 : 23:14:35
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quote:
Originally posted by RHB
I think if your debt is less than your assets then you can't be deemed insolvent & therefore can't go bankrupt
Our debt would be far more than our assets as the lease is fully liable and has personal guarantees.
Oddly, we could end up bankrupt for £481k but only £45k was ever actually spent.
Lease Laws should change after this recession as new retailers don't stand a chance of ever getting anything started, they would be mad to take the risk. |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 30 January 2009 : 23:51:38
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Hi
Thank you for sharing so much. It is difficult to discuss indepth and complicated issues on the forum as it is far better suited to one question at a time type scenario.
You hawever have an awful lot going on and it sounds like you really have an unpleasant landlord.
The bailiff charge per month is crazy and unless you are behond in the rent this isn't inforecable.
The way in which the most reputable specialist companies like our work is to have a no cost, lengthy discussion about the whole situation ( business, personal , emotional ) because everything is impacted.
After discussing and understanding the full picture each solution to debt needs to be looked at to see if it is applicable and how it would effect you and your family and future business.
Then a strategy and timeline is developed for you with a recommendation. Incidentally we would prefer to do this face to face at your site so we can understand your business and aspirations.
That is all free.
If at that point you elect to use specialist services then there would be a charge but over the last several years I haven't met anyone who wasn't able to engage us if they decided they needed the help.
The key thing is not to focus on the costs but to focus on the solution and strategy for getting there. You may decide to run the programme yourself which is fine.
In terms of your previous experiences of debt companies I am sorry you have had some bad experiences. I can only say that the experts here on the site live and die by their reputation and can so easily lose their reputations in an instant.
I understand what you say about the lease challenges. I have today signed a new lease for new offices and that was only after 5 months of looking.
Unless commercial landlords start to play the game they will very soon be the ones signing onto the site because they will have huge numbers of properties empty, and will have to pay rates, building insurance etc.
Which part of the country are you in?
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
Real People ..... Real Debt Solutions
www.revivauk.com |
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lennon
Starting Member
16 Posts |
Posted - 31 January 2009 : 00:04:21
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Hi...I just sent an e-mail via your website with a bit more detail.
I only wrote about debt companies from things I have read....we have never used one personally before.
We've traded 23 years fully liable and never had a CCJ or anything.....but have looked over the edge a few times.
Another forum I potter on ahs many posters who have not had their problems 'solved' in the right way for them
so they get into more trouble.
TBH, for the issues we have, there is very little relevant information out there.
You will have my contact on the mail I sent tonight
Cheers again for the reply. |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 31 January 2009 : 00:13:11
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Thanks
not in office but received on my trusty blackberry!
I have sent a reply
take care
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
Real People ..... Real Debt Solutions
www.revivauk.com |
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lennon
Starting Member
16 Posts |
Posted - 31 January 2009 : 12:50:01
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I can't see anything in my inbox. I will re esnd my details to reviva.
Thanks for the messages of support.
We have worked out our preferred options and know what we would wish to present to the LL.
And I just spoke to Paul......and we will now set up A Plan to follow that suits our needs.
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lennon
Starting Member
16 Posts |
Posted - 07 February 2009 : 23:23:30
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Edited by - lennon on 20 April 2009 00:20:28 |
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How is the beneficial interest calculated
