Lloyds want us to charge over interest in our property- advice needed!

January_Embers · 16 June 2006 at 10:24AM

Hi,
My husband received a letter today form Lloyds solicitors saying they have rejected his offer as stated in the variation order to the court. The latter goes on to say Lloyds will accept £250.00 if he grants the bank a voluntary charge over our property. Can someone explain to me what this is? Can they take our house?

Needless to say we cannot afford £250 a month.

Have also received some scary looking documents from the land registry about this.
Don't know how much more of this I can take. I only came out of hospital 2 days ago.

Also - should we get a court hearing or letter from the court as we have not heard from them yet?

CLAPTON · 16 June 2006 at 10:46AM

a charging order means that when you sell your propery the creditor will have to be paid (after the mortgage provider) but before other creditors.

I would NOT agree under any circumstances...you have nothing to gain from what you say. They can go to court to ask for a charging order...whether they would be sucessfull depends upon the full circumstances...Note that is doesnot mean that they can force you to sell your property.

what are the land registry documents?

i don't know whether you have already posted your full circumstances but if you which to give more complete details people here may be able to offer advice on the wider problems.

January_Embers · 16 June 2006 at 11:16AM

Ok brief run down:
Husband owes quite a bit to various people, including approx £15,000 to Lloyds related to his buisiness account. All these charges, late payments etc have built up in the last few years due to me becoming disabled through ill health. I use to work full time, then I had to reduce to part time & now I cannot work at all. So now we have one wage and lots of bills we can no longer afford. We have been paying everyone a regular monthly payment on a DMP & it was all going ok until recently when Lloyds decided that they wanted more & we going to take him to court if they did not get it.

Anyway...Just got off the phone with the court & they say Lloyds are trying to pull a fast one in that they are hoping we are going to panic sign & agree to everything. We don't have to take any notice of them, just wait for the court hearing. Phew! Lordy is this stressful.

The land registry thingy says 'Notice of an application to register a restriction against the land'. Apparently Lloyds have applied for this before the court hearing. It appears they have lots of nasty, crafty tricks and intend to try them all out on us

Intend to fight it anyway. Also trying to get husbands bank charges back now as the majority of what he owes is charges put on by them.

Toto · 16 June 2006 at 11:21AM

Please don't agree to a charging order. I would fight kick and scream through court to avoid that personally. I don't know if you are involved with payplan CAB or any of the free advice agencies but if not, this may be a good time to get them involved. I do think sometimes letters from them carry more weight than from us ordinary folk who can be easily scared into signing up for things all in the creditors favour. The way I understand charging orders is there has to be a CCJ first and then the creditor can apply for a charging order through the court from there. I know you can ask for payment terms on your CCJ. I am not sure if you keep to the terms set out on the CCJ if the judge would grant a charging order or even if the creditor would even be allowed to apply for one. I am not that clued up, I am sure someone will be able to advise better, but I am fairly sure they can't just go right in and apply for one without the CCJ.

Toto · 16 June 2006 at 11:23AM

Just found this on payplan's website.

What is a Charging order?
A charging order is an order from the court placed on a debtor's property (house or land) for monies owed to a lender.

If you have borrowed money and the money is not secured and you have not kept to the repayment arrangement, a lender can request the court to place a charging order on your property so that when the property is sold you will have to pay that debt off first before any of the proceeds are given to you.

In basic terms, the unsecured debt becomes secured on your property.

When can a lender apply for a charging order?
Before a court will consider an application for a charging order, the lender must have issued a county court judgement and you must have failed to make payments on that judgement or not paid the judgement according to the requirements of the court.

What happens when I receive a charging order?
The lender will apply to the court for a charging order, once the court has considered the application and is satisfied with the application, you will receive the order on a N86 form.

The form will include information regarding the time and date of the hearing when the judge will decide if to make a final charging order.

If the judgement is put in place, you will receive a N87 form (Final Charging Order), this form will also be sent to the lender. The lender will then need to inform the Land Registry of the order.

Will I be forced to sell my house or land?
You are not under any obligation to sell your property once the final charging order is in place, however, there are some extreme circumstances where a lender can apply to a court for force of sale. This is, however, rare and the court would have to agree to the application before such an order would be served.

January_Embers · 16 June 2006 at 12:02PM

Thank you all

This board is great, everyone is so supportive and helpful.
The CCJ has only just been issued and he hasn't made any payments on it yet as we applied for a variation. The court forms were not returned in time and he ws ordered to pay the full amount. The reason the forms were not returned in time is Payplan asked us to send the forms to them but they didn't forward them to Lloyds in time, therefore they over got to court. We are not happy about this as if they had got to court in time we might not be in this situation now. My husband has acknowledged his debt & is doing his best to pay back what he owes. I am trying to help him but it makes me sad that we are in this situation because of my health problems.

Turning_into_scrooge · 16 June 2006 at 3:00PM

January_Embers wrote:

Ok brief run down:
Husband owes quite a bit to various people, including approx £15,000 to Lloyds related to his buisiness account. All these charges, late payments etc have built up in the last few years due to me becoming disabled through ill health. I use to work full time, then I had to reduce to part time & now I cannot work at all. So now we have one wage and lots of bills we can no longer afford. We have been paying everyone a regular monthly payment on a DMP & it was all going ok until recently when Lloyds decided that they wanted more & we going to take him to court if they did not get it.

Anyway...Just got off the phone with the court & they say Lloyds are trying to pull a fast one in that they are hoping we are going to panic sign & agree to everything. We don't have to take any notice of them, just wait for the court hearing. Phew! Lordy is this stressful.

The land registry thingy says 'Notice of an application to register a restriction against the land'. Apparently Lloyds have applied for this before the court hearing. It appears they have lots of nasty, crafty tricks and intend to try them all out on us Intend to fight it anyway. Also trying to get husbands bank charges back now as the majority of what he owes is charges put on by them.

Lloyds are very nasty and low life's as well i have a DMP set up with CCCS and pay them monthly i had a phone call from them yesterday asking how i intended to pay off what i owe them when there is no payment plan set up on the account. It was re set up 3 months ago and all because i am claiming back 3k of bank charges.

Mike_St_Helens · 16 June 2006 at 3:28PM

Can i ask... sorry this is diverting from the orig post... but you have a dmp with lloyds and have asked them to refund all their fees that they have charged you... did they still agree to your dmp ?

Same situation thats all and a chunk of refunds would clear a damn lot of the debt !

Cheers

MD

Turning_into_scrooge · 17 June 2006 at 2:34AM

Mike_St_Helens wrote:

Can i ask... sorry this is diverting from the orig post... but you have a dmp with lloyds and have asked them to refund all their fees that they have charged you... did they still agree to your dmp ?

Same situation thats all and a chunk of refunds would clear a damn lot of the debt !

Cheers

MD

CCCS re set up the plan about 3 months back which as far as i know they agreed to, they have been dealing direct with CCCS up until now. What confused me though is that she said they were a debt collection agency and if i don't pay they will send it to a long term debt collection agency she got really nasty when i said she'd be doing me a favour if she did. The way i see it if they are a CA then none of the bank charge refund should go to the debt, but don't count on it. Have to say though CCCS did tell me they may do this. I have so many defaults registering this one with Experien ain't gonna make a blind bit of difference seeing as its already been defaulted

Lloyds want us to charge over interest in our property- advice needed!

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