Commercial Settlement at 25%

By on April 19th, 2017


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Commercial Settlement at 25%

A client approached Bell & Company via a recommendation from a previous happy client. The case was complex due to the fact the client had a significant income and equity in their home. The client had a commercial loan with a major lending institution over which the bank held a charge on land as security.  The client approached Bell & Company for some impartial advice to which we agreed to enter into dialogue with the lender in question.

Further to liaising with the lender, a consensual sale to dispose of the land was agreed to however, unfortunately after the sale a £60,000 shortfall was left due to the difference in property prices.

The lender requested repayment of the balance in full via monthly repayments as the amount outstanding was viewed as a ‘manageable’ debt based on the client’s income. Due to personal complexities, this was not the case, the client couldn’t commit to the long-term agreement and instead sought a full & final settlement to draw matters to a close.

With a view to establishing closure for our client, we successfully settled the shortfall in a full & final settlement of 25% of the balance owed. (£15,000 of the £60,000 that was outstanding) For our client, this enabled him to remove the burden and start fresh again without being anchored into a repayment agreement.

Every case is different, for some, entering into a monthly repayment agreement would have been ideal, however, due to the complexities of our client’s personal life it was essential for us to find a full and final settlement. With our strong negotiation skills and expert knowledge, we successfully achieved a viable settlement for all parties involved.


Shortfall: £60,000 Settled for £15,000 25%


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