Legal Question in Business Law in United Kingdom

3 Years Ago i Purchased a Nightclub with a long term Friend , & we needed to raise �250,000 towards the Cost of buying the Club which totaled �450,000 , We arranged for Lloyds to Value both ours & my Partners Property , My Partner only had about 70K equity but me & my Girlfriend had around 300K equity so they happily lent us the Money as a Joint loan , We were both made aware that if one Partner can not pay the Monthly repayments or the Business cant keep up the Monthly Payments , then the Bank would come after the other Partner ( Us ) Now me & my partner have fallen out over the Club not doing well & He has literally Disappeared & Sent me an Aggressive Email saying He no longer wants anything to do with the Business & his 50% liability of the �250,000 loan will be Paid by someone he has Secretly been selling Club Shares to , All this Happened Jan of this year & this person who I now find as a reluctant partner is "Not" paying my Ex partners 50% share of the Loan Payments & I am stuck with paying the Whole amount on my own , & my Question to you is , is this Allowed for him to just pass his loan on? He's not gone Bankrupt & still owns his home ( We checked ) We fully understand the Loan has to be paid & weve been & seen the Bank & we are paying it ( With a Struggle ) , is this right Should my Partner not be held to account as he's still out there & not Bankrupt?

Trace


Asked on 9/14/09, 5:56 am

1 Answer from Attorneys
Andrew Dutton Legal -Zone

The problem you have goes beyond payment of the mortgage, You own the nightclub business and the premesis in equal shares which means that when the property is sold he will be entitled to half the equity in the property and half the value of the business. If he is dropping out and not paying the mortgage that is obviously not fair and will not be what you intend if you are taking over the responsibilities.

These (and I suspect) other matters have to be reolved and if your former partner wants out of the business this needs to be properly formalised. The partnership needs to be dissolved and you need to take over the property. In other words you need proper and comprehensive legal advice on the position and help to take the necessary steps.

Let us know if we can help further

Andrew Dutton

[email protected]

www.legal-zone.co.uk

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Answered on 9/14/09, 6:18 am


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