Charging Order? The myth

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  • cue1boy
    cue1boy Posts: 3 Newbie
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    Thanks a lot eggbox, that makes things a bit clearer. I will contact both parties just to clarify they have not been sold the debt and are indeed collecting on tescos behalf.
    Thank you:)
  • Arthlee
    Arthlee Posts: 6 Forumite
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    I have a similar query and would appreciate help.

    My wife and I own a property but I have a restriction relating to an old debt now in excess of £30,000 thanks to interest. The other party and the Judge refused my offer to pay instalments so the debt just keeps growing.

    We don't want to sell but would like to pass this house on to our daughter in the future. Can this be achieved or would she take on this problem?

    A
  • eggbox
    eggbox Posts: 1,774 Forumite
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    Arthlee

    It's my understanding that the Land Registry can't transfer property deeds that have a Restriction replaced. They aren't prevented, however, when the property is sold to a third party for value and the Restriction holder has been notified.

    Can I ask if the debt was for a CCA regulated loan as interest should not have been added if it was.
  • sampete
    sampete Posts: 28 Forumite
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    Arthlee wrote: »
    I have a similar query and would appreciate help.

    My wife and I own a property but I have a restriction relating to an old debt now in excess of £30,000 thanks to interest. The other party and the Judge refused my offer to pay instalments so the debt just keeps growing.

    We don't want to sell but would like to pass this house on to our daughter in the future. Can this be achieved or would she take on this problem?

    A

    Hello Arthlee

    My wife and I are in a similar position as yourself. Following this thread and advice from eggbox, we intend to sell to our house to our daughter for a nominal sum. This satisfies the LR criteria for removing the restriction ie property will be sold to third party ( Daughter ), restriction holder will be informed, restriction falls away after sale. Job done! So, dont worry, it can be achieved.
  • Arthlee
    Arthlee Posts: 6 Forumite
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    Hi there and thanks for the responses

    My debt relates to court costs from a family matter we could not afford to take further or challenge. Interest is 8% at present

    The first judgement was a total shock. We were then told that County Court and a charging order would be next. We tried to negotiate and offered instalments and/or a one time settlement but the other side would not budge. The restriction went on despite our objections.

    We would like to protect the family home for our daughter to take over.

    Can you apply for the restriction to be lifted if you offer a different instalment plan?

    Art
  • Sparklyfairy
    Sparklyfairy Posts: 758 Forumite
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    Arthlee,I know that Restrictions or CO's won't be lifted based on a new instalment plan. However, full & final offers can always be made to the charge holder - just ensure everything is in writing, especially that they clear the Restriction on your property with the Land Registry.
  • eggbox
    eggbox Posts: 1,774 Forumite
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    Arthlee wrote: »
    My debt relates to court costs from a family matter we could not afford to take further or challenge. Interest is 8% at present

    Unfortunately, under those circumstances the CO amount will still accumulate at 8% pa
    Arthlee wrote: »
    We tried to negotiate and offered instalments and/or a one time settlement but the other side would not budge.

    I can't obviously comment on the rights and wrongs of your dispute but if whoever you owe money to doesn't want to negotiate they have that right. Any creditor who obtains a CCJ can obtain a CO very, very easily under the current legal system.
    Arthlee wrote: »
    Can you apply for the restriction to be lifted if you offer a different instalment plan?.

    Yes, as long as the creditor agrees. But, having gone this far, it a fair bet only a lump sum settlement would see them agreeing to the Restrictions removal.

    However, there is little you creditor can do to get you to sell your house if it is your main residence. And, as this thread highlights, a Restriction is very weak security for a creditor who is clued up.
  • Arthlee
    Arthlee Posts: 6 Forumite
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    Hi eggbox

    Thanks for your helpful comments.

    Do you agree that we might be able to sell the house for a small sum e.g to a family member and the restriction would fall away?

    Art
  • eggbox
    eggbox Posts: 1,774 Forumite
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    You have to be careful about a nominal sum as it can also be seen as trying to evade Stamp Duty (and possibly IHT and CGT too)

    So whilst your aim will be achieved you need to work on figures that don't cause problems elsewhere for you.
  • sampete
    sampete Posts: 28 Forumite
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    I read a post by BradB yesterday. It doesn`t appear today. Is there any reason for this?
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