In total unsecured debt is £45,000. The total of our mortgage and business loans is £206,000 (£88,000 mortage, £18,000 secured business loan and £100,000 SFLGS loan with lloyds tsb)we hope to sell the house for £155,000 which gives £67,000 equity, and the business for £200,000 giving another £82,000 equity. I should add that it is a leasehold business and it would be worth nothing if it was not sold as a going concern as the main value is in the goodwill.
At the moment we also owe our parents £21,000 which we agreed would be repaid from house or business sale, and this is not included in the unsecured debt figure of £45,000 above.
The bank have told me that the SFLGS loan is secured on our house but I am sure that isnt right. The smaller part is secured (£18,000) and so is the overdraft which can go up to £25,000 over the winter if necessary.I went to see the bank yesterday and they told me that if we sell the house first the bank would expect the secured loan to be paid off first and then the rest of the equity to be put into a savings account as security against the SFLGS loan. I didnt question it - just thought I would check it out for myself. I didnt tell them about the VAT or tax money owing as I do not trust them to give me good advice any more, and I have for their help before but been unsuccessful.
If we cant sell our house or business in the next 6 months we may end up being further in debt than we are already. I have a viewing at the restaurant on Friday and am seriously consideing telling the agents that we want a quick sale due to ill health (not far off the truth) and reducing the price, but I dont want to scare off potential buyers by appearing desperate!
I am finding reading other threads in here very helpful but there isnt that much about business debt so I really appreciate your help!
