If they hold a charge it is effectively secured like a mortgage. However, there are a number of issues in that insolvencies can actually void the lease and it reverts to the landlord. There is also the possibility that the lease would not achieve sufficient in a sale to clear the NatWest and the shortfall would then become unsecured.
Your IP would need to see a copy of the lease and details of any charge held. They can then advise you further on what the implications are.
many thanks for your reply, what would happen if i put my business loan into the iva or would bc be a better route even though i live here and do not have another property to go to, please advise.
If the business loan is secured and you live on the premises it will have to be paid. There would be an allowance made in any cashflow projections and profit and loss for the payments to continue to be made. It would be the same as a mortgage on a domestic residence.
thanks again are the bank likely to ask us to move out and try and sel the lease or could they agree to an iva? sorry for asking so many question but i am a worrier.
There is no reason for the bank to try and force you out as the IVA would show them being paid. As a secured creditor they receive a copy of the IVA and would know that if they pushed for a sale they may get very little or nothing depending on the worth of the business.
Your IP will have to get the lease and business valued but pubs are not exactly selling like hotcakes so there may not be any equity in the business. However, if the business had more equity than debt your unsecured creditors would likely want it sold so that they could be paid in full.
