How much do we have to pay off a developers debt?
Posted: 02 Oct 2013 21:05
Hi Nigel
I have recently been asked by our residents association to vote on whether or not to join a court action to establish how much we should pay off a loan taken out by the (now defunct) developer of our properties.
In other words let the court decide how much we have to pay off this debt in order to get our Title Deeds.
However what is not clear is whether or not the court applies some kind of formula to decide on what portion of the debt they deem 'fair'. We've been told each owner will have to pay an amount which is in direct proportion to the size of their respective property, but it is unclear whether this applies to the whole debt or just a portion of it.
Has anyone any experience of such court action and as a result any answers as to what formula the court would apply/does apply?
I have recently been asked by our residents association to vote on whether or not to join a court action to establish how much we should pay off a loan taken out by the (now defunct) developer of our properties.
In other words let the court decide how much we have to pay off this debt in order to get our Title Deeds.
However what is not clear is whether or not the court applies some kind of formula to decide on what portion of the debt they deem 'fair'. We've been told each owner will have to pay an amount which is in direct proportion to the size of their respective property, but it is unclear whether this applies to the whole debt or just a portion of it.
Has anyone any experience of such court action and as a result any answers as to what formula the court would apply/does apply?