Limited company details

[Baldhead]

A Ltd company I am researching on Companies House has listed, Mortgage: Number of charges: 1 does anyone know exactly what this means? I assume the office/workshop space is mortgaged, am I correct.

Baldhead

 

[Hivenhoe]

A Ltd company I am researching on Companies House has listed, Mortgage: Number of charges: 1 does anyone know exactly what this means? I assume the office/workshop space is mortgaged, am I correct.

Baldhead

This any help http://company-formation-registration-ltd-uk.com/life-company-ltd/charges-mortgages.php

 

[MMUK]

It basically means they have one property that they own under mortgage rather than leased.

 

[doctor Bob]

I believe it means they own a property but have a mortgage on it.
They have a charge on the property, this means the bank have probably loaned them some equity based on the security of the equity in the property.

 

[blackrodd]

A charge is listed on the register as the property is collateral for a loan and it is there to stop multiple loans being taken out using the property value.
Also it is not possible to sell and escape the "charge" being paid off on the sale of the property.
Regards Rodders

 

[Baldhead]

So if this company were taken to a small claims court it would be very foolish to declare themselves bankrupt so they didn't have to pay what the court decided?

Baldhead

 

[MMUK]

If they went bankrupt, all assets would be sold off, usually at auction, and I doubt you'd get a penny after the major creditors have had their pick of the bones. All they'd do is appoint a different director and start up again at different premises.

 

[beech1948]

Baldhead,

Unlikely to go into bankruptcy over a small claim. Owning the building and the paying the mortgage would indicate a business of some worth or the bank would not have made the loan.

likely response is to ignore the small claims court and then be faced with bailiffs.

I would get a full report from companies house including recent accounts summary and have a good look first.

I would also start a process of one warning letter first, reference any other attempts to get payment, and include any invoices then straight into the small claims court. The warning letter serving as an alert that they need to pay.

Al

 

[beech1948]

Baldhead,

Depending upon the size of the business its possible the bank will have taken some personal collateral like a charge against the directors houses so they would have a lot to lose if going bankrupt.

Al

 

[Baldhead]

Thanks for all your help guys, I have a funny feeling when we send a letter before action he will just think it's a bluff, funny thing is, the last person we took to court also thought we were bluffing.
When he sees the evidence we have against him he will either,
1 not turn up at court, or
2 make every excuse under the sun for his companies actions, or
3 blame another member of staff, or
4 declare the company insolvent.

Silly thing is, he has admitted everything in an email to us, and offered compensation, which is approx one sixth what it has cost us.

Once again thanks.

Baldhead