Uk Finance Company gone into Administration

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RPC757

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I financed the purchase of a property in the U.K in 2006 with a bridging lender over there. When the market crashed in 2008 I took the decision to sell the property but was left with a shortfall of approximately £31,000.

At the time I agreed a monthly payment plan with this company (which I have fully adhered to) in order to discharge this debt.

This finance company have recently been placed into administration. On reviewing my loan agreement with them it specifically states "A person who is not a party to this letter may not enforce any of its terms under the contract".

As the Administrators were not part to the original agreement, what are my duties to them and how should I handle them when they do eventually contact me?

Thanks in advance.
 
It has no impact what so ever in relation to you legal responsibility to pay back the loan if that is what you are thinking... from your point of view it is simply a change in the management of the company that is all.

I'd be more concerned about what happens next, if the company goes into liquidation you may find that you have to pay back the loan in full much earlier than planned!

Jim2007
 
Thanks for the reply. But what is the position if try to sell the loan on? Surely this would be regarded as a third party.
 
The administrator should have the same rights to sell on the loan as the previous management had. You therefore need to check your loan doc's (probably both the original loan and the subsequent agreement you entered into to repay the shortfall amount) to see what it says re selling it to a third party. It is normal for such sales/transfers to be permitted. Such terms are what allow banks etc sell loans to debt collection agencies for example
 
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