Fionawhyte
New Member
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- 6
The loan is to a partnership, my husband and his brother. They sold two properties, the proceeds of one has been paid against the mortgage and the proceeds of the second 130,000 is what they were using to try to close the loan. This is still available to use. Our PPR is in my name and my husbands but I have nothing to do with the commercial loan.The loan is to you and is not limited to the value of the pub.
So if you have other assets, they will want those assets to be sold so that you can repay the loan.
But the VF will probably be more efficient than the bank.
If your only other asset is the family home, then you should contact an insolvency practitioner for advice.
Brendan
Can we be forced to sell our PPR then? Do you think the VF nowadays is open to negotiating a settlement or will they go hardline and go after the full amount with no negotiation?The legal position is that the partnership is fully liable for the loan, irrespective of the value of the proceeds.
Your husband's assets would be in the mix - so half of your PPR.
Your half of the PPR would not be available.
Brendan
Can we be forced to sell our PPR then? Do you think the VF nowadays is open to negotiating a settlement or will they go hardline and go after the full amount with no negotiation?
The pub is valued at 175,000, the loan is now at 250,000
We could probable come up with 180,000 at a push
You have a property worth €175k with cash of €130-180k and a mortgage of €250k. What's the problem? You need to sell the pubthe proceeds of the second 130,000 is what they were using to try to close the loan
You have a property worth €175k with cash of €130-180k and a mortgage of €250k. What's the problem? You need to sell the pub
we also have 11 other pubs!
I think they mean there's 11 other pubs operating in the village, demonstrating that running their property as a pub isn't viable.Sell one of them and pay your debts.
Brendan
No they won’t tell you and in any case cannot even be calculated for your loan as almost certainly a whole bunch of loans was sold including yours.. Is there a way of finding out what the value was and is there a way of finding out what the VF paid for the loan.
Much will depend on the VFs view on the value of your home. If you have a particularly valuable home, with significant equity in it, expect them to try and push you to downsize. A more modest home will not be as attractive to them.
Regardless, any attempt to to force the sale of your home, can be defended, and the odds are very much in your favour, if it ends up in a court room.
Keep the cash that's available "ring fenced", and wait for the VF to contact you. They'll be in touch, in due course. Don't agree to use part of it, to make regular payments, as this will disadvantage you.
In the meantime, explore other possible options, in terms of the pub, and potential sources of income.
You mentioned that the pub hasn't be leased for a year - why can't you and your husband run it, or your husband and his brother?
If neither your husband or his brother are working there, and can't, or won't, what are they doing for regular income?
Does the lender also have a charge over the licence, or just the freehold property?
Is there any potential to develop the property, maybe increase capacity, add an additional facility (restaurant, shop, off licence, take-away, or even residential - subject to planning permission etc.) ?
If the pub is no longer viable, then explore the possibility of a complete change in use (subject to planning permission, and potential to either increase value, or generate a regular income from it).
Speak to a local architect, and seperately a local estate agent, to get their opinions on what options there are for the commercial property.
My husband works as it is, we are in our 60's and unable to take on additional work. He has medical issues also. His brother lives in the US. We live in a small village with a pop of less than 1000 and we also have 11 other pubs! We had it leased to a young couple up to Sept 2022 but they couldn't make it work for them, hence not a viable option to operate as a pub. We have it with an auctioneer since Sept 2022 to lease for any type of business but no takers.The bank recently had the building valued a secong tome telling us it was to inform them of what they would expect from us as a settlement, previously valued at 175000 witjout the licence. They dont have a call on the licence. Then out of the blue we received the letter saying theyhad sold the loan. Is there a way of finding out what the value was and is there a way of finding out what the VF paid for the loan. Will the VF be aware of our offer of 130000?Much will depend on the VFs view on the value of your home. If you have a particularly valuable home, with significant equity in it, expect them to try and push you to downsize. A more modest home will not be as attractive to them.
Regardless, any attempt to to force the sale of your home, can be defended, and the odds are very much in your favour, if it ends up in a court room.
Keep the cash that's available "ring fenced", and wait for the VF to contact you. They'll be in touch, in due course. Don't agree to use part of it, to make regular payments, as this will disadvantage you.
In the meantime, explore other possible options, in terms of the pub, and potential sources of income.
You mentioned that the pub hasn't be leased for a year - why can't you and your husband run it, or your husband and his brother?
If neither your husband or his brother are working there, and can't, or won't, what are they doing for regular income?
Does the lender also have a charge over the licence, or just the freehold property?
Is there any potential to develop the property, maybe increase capacity, add an additional facility (restaurant, shop, off licence, take-away, or even residential - subject to planning permission etc.) ?
If the pub is no longer viable, then explore the possibility of a complete change in use (subject to planning permission, and potential to either increase value, or generate a regular income from it).
Speak to a local architect, and seperately a local estate agent, to get their opinions on what options there are for the commercial property.
we also have 11 other pubs!
We personally do not have 11 other pubs, the town has 11 other pubs making it very difficult both to run or sell a pub.
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