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My solicitor had advised me in 1995 to keep him “off the Court Record” and deal directly with Barclays myself, to keep costs down.

It still cost me dearly though, £10,000 in legal fees and two years of my life My solicitor also warned me that we had a little chance of success but if we got close to the High Court Barclays would settle rather than risk losing in the High Court – This is, in effect, what happened in July 1997… So that was the website back in the year 2000…

This is what I discovered in 2001 about the loans, again with initials used in place of names.

Barclays file note 17th of October 1988 ref. DRP / JHB
Customer may need overdraft facility of £10k, short term cash flow problem and also faces back tax and penalties for previous trading years which may require further funds.

Barclays file note 6th of March 1989 ref. DRP / JHB
Customer called to inquire about the possibility of a £50k to £60k facility to purchase a property in Majorca.

Barclays file note dated 8th of March 1989 ref. MD / JHB
Branch manager called at customers home 350 Uttoxeter New Road which he valued at approximately £140k.
Accounts for Mr Stewart’s business showed a turnover of £164k in the year to April 1987 and a net profit of £19k. No figures available for 1988. Accounts for the years 1981 – 1986 have been assessed for tax at about £21k.
Overdraft facility of £60k approved in principal for the purchase of the property in Spain.

Barclays letter dated 27th April 1989 MD Manager
Confirms that the facility is now available to purchase the property in Spain.

Barclays file note dated 28th April 1989 ref. MD / MP
Property in Spain purchased for £75k.
Accounts for 1988 and 1989 now completed.
Net profit in 1988 £35k before drawings of £18k.
1989 net profit £39k including £30K spent on work at the house and drawings of £18k.
Tax liability agreed with Inland Revenue for the period 1977 to 1987 at £15K.

Barclays letter dated 16th August 1989 – MATB Business Manager
Overdraft facility increased to 75k.
“The Majorca villa purchase coupled with the payment of back taxes have both depleted the available resources in the company and we did discuss how this could be rectified in the future, especially if there is a need for the company to acquire freehold premises, however I appreciate that these plans are very much in the embryo form at the moment and no doubt you’ll keep me advised on develop” – MATB Business Manager

Barclays file note 4th September 1989 ref. MATB / PA
Proposal by customer to purchase freehold premises at a different location in Derby. Discussion on how to fund the proposal which came to nothing as the purchase did not go ahead.

Barclays file note 16th January 1990 ref. MATB / PA
Mr and Mrs Stewart called into the bank to discuss the present trading situation on Hearth & Home and also a new business proposition.
Present trading:
No up-to-date accounts are available since the closing figures for the previous sole partnership as at the 30th of April 1989. However it is clear from the run of the bank account that turnover levels have reduced and are now probably running in the region of £20k per month compared with the prior year of £34k per month. Vic Stewart tells me that he has reduced wages levels as a result of the downturn in business and therefore providing gross profit margins after materials purchased have remained similar at 40% then with lower wages costs and a similar overhead base the company should still be viable.
Run of the bank account:
The bank account operates on a reasonable basis and we have seen a reducing average balance since August which again appears to indicate that small levels of profitability are being achieved.
Diversification:
Customers are cognisant of the downturn in the property market and its effect on their normal product range which is a manufacturer and retail of fireplaces and fire appliances, bearing this in mind Mr and Mrs Stewart have considered other ventures and would now like to acquire another property, carry out renovations and alterations and sell the premises at a later date.
Proposition:
Mr and Mrs Stewart would like to purchase a small two bedroom detached bungalow situated at 58 Church Lane, Darley Abbey, Derby which is on the market at a price of between £80 and £90,000. Customers offer of £80,000 has been accepted. The property is in need of some refurbishment and the agent suggests that there is a possibility of planning permission for a building plot in the garden. The bungalow is situated next door to Darley Abbey Church and is in a very pleasant location with surrounding properties being worth between £100/200,00.
Financing requirement:
Unfortunately customers have no cash to put towards the proposition and we are therefore looking at 100% lending in joint names. The initial lending would be £80,000 in order to complete the property and then a loan building up to say £120,000 in order to finish the conversion. The interest to roll up. Repayment to be made from the eventual sale of the property. As far as timing is concerned customers are hoping to complete within the course of the next four weeks and providing planning permission can be received fairly quickly then the conversion work can commence before the end of March and Stewart recons it will take between three to four months to complete so that the enhanced property is on the market in the Summer.
Total facilities will then be as follows:
Hearth and Home Ltd Overdraft £75,000
VL and W Stewart Building Loan £120,000