UK Property Law
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The personal guarantee was not explained at all. The landlord is threatening to chase the guarantors and their assets, I.e. their homes. They also said if you decide to sell your houses, then these transactions will be reversed by the court.
Theremay be a negligence claim here against the solicitor not particularly for notadvising the directors to take independent advice from another solicitor, butquite simply, for not advising the directors at all that they were signing apersonal guarantee. If they simply sent the documents in the post with acovering letter that said "sign here, here and here." I think there is anegligence claim
If theguarantor transferred their house, for example, to their wife, the court can indeedset that transaction aside, if it is not done at market value. There is nothingto stop a property being transferred to a spouse for no consideration but thattransfer has to be done for five years before it would escape a claim bycreditors. That is because the spouse is deemed to be a connected person.
If thetransfer for no consideration or under market value is done to an un connected person (friend or associate), then it onlyneeds to be transferred for two years before it is out of the creditorsclutches.
Iwould start with a complaint to the firms Complaints Partner
If we go after the solicitor for a neglegance claim, what happens in the mean time if the landlord comes after the guarantors. Will the cost be covered by such claim?