Reconciling a stack of CCJs to keep things moving

Situation

We’ve seen more than our fair share of CCJs crop up in our time, and sometimes they can really throw a spanner in the works. This particular client needed a loan to repay an existing charge at end of term, and to clear CCJs of more than £27,000.

Some lenders would run a mile, but we’re not any old lender. After taking a closer look we learned that the client had until recently been working abroad. After trying to open a bank account they had discovered that a tenant had run up the figure through unpaid council tax. His woes were increased by issues with the valuation from chimney breasts that had been removed, but not inspected, and a tree that needed maintenance. So we got to work.

Solution

First things first, we needed detailed investigation and negotiation with the council, to make sure all the references were correct.

In order to help clear the CCJs and market the property for sale, we structured a loan with the condition that the property was marketed within one month of completion. An interim report was created to monitor the progress of the sale, with a mid-term refinance up our sleeve as a backup. Once all parties were happy, we got the ball rolling.

Result

It took some time for the client’s solicitor to negotiate a settlement with the council, due to a shortfall on funds. So we decided to make the most of that time by speaking to all parties and checking nothing was left outstanding. We also found ways round the issues with the valuation to make sure everything could be completed without creating any additional delay. By helping and educating the broker and client, they are both in a better position for future projects and we hope to collaborate with them again soon.