A friend's home was burnt down in February this year. All that is left are four external walls and part of the roof. The property needs to be gutted and rebuilt.(posted 7460 days ago)Home was also a small B&B business which was my friend's sole source of income.
Insurance companies are being very difficult and have paid nothing so far, disputing the existence of business interruption cover and the amount of the rebuild cost which they will pay.
My friend and I are concerned that the rebuild insurance figure, which (we think) was provided by the mortgage company, has now been established as inadequate - presumably because their valuer used the wrong rebuild tables (property listed!). Would this be negligence on part of mortgage company?
As a consequence of losing the B&B income, and dispute with insurance company over business interruption cover friend now in arrears. Igroup Mortgages have refused to suspend collection of repayments and are now insisting on repossession (of the shell!). Court papers issued for hearing in mid December.
It has been pointed out to Igroup Mortgages that the source of income from which mortgage payments made no longer exists because of the fire. Suggested to them that it would be in their best interests to wait for insurance issues to be resolved and house rebuilt.
Any comments or advice on what should be presented in court to help friend - he simply can not afford any solicitor's fees.
In particular would appreciate if any one knows what the court's view might be and point me to relevant case law, Acts etc.
If repossession goes ahead we are fearful that shell will be sold for next to nothing, the insurance company will pay out less than half the rebuild cost and my friend (now homeless and unemployed) will be pursued for a substantial debt.
Many thanks
George