Charging Order? The myth
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If funds are tight then stopping the £150 repayment isn't going to alter anything. The creditor won'y get an OFS and, as you are self employed, they can't get an attachment of earnings order either.
Remortgaging your existing house, also, isn't going to remove the Restriction. Only you can decide what course of action to take but selling up to regroup may be worth investigating given the hardship you appear to be suffering by remaining in the property?0 -
Hi Eggbox,
We were told by the mortgage company that we could re-arrange the mortgage into another product. I assume that they would be more in a position to offer us something rather than starting the whole income evaluation with another company, we have been with them nearly 15 years.
My whole thoughts behind the comments on the thread was that the 'Restriction' is in my name only and because of this could be dropped from the Land Registry with some 'intervention' and the right moves from a conveyancer or solicitor?.
Is this not correct?
Going through the figures, I could see we could extract £20-30K from the re-mortgage with very little increase in monthly mortgage payments and place in our mortgage pot as security on ongoing payments.
If it came to it, I 'might' either challenge the CO, get that overturned and get my payments back, or come to some 'arrangement' with the bank so we can both walk away.
Thanks0 -
flyinglizards wrote: »Hi Eggbox,
My whole thoughts behind the comments on the thread was that the 'Restriction' is in my name only and because of this could be dropped from the Land Registry with some 'intervention' and the right moves from a conveyancer or solicitor?.
Is this not correct?
The Restriction can only be removed, whilst you remain in the property, by the Restriction holder agreeing to it's removal. The Restriction is removed when the property is sold (for value) as it becomes "overreached" as the buyers interests take priority over the interests of the creditor.
flyinglizards wrote: »
If it came to it, I 'might' either challenge the CO, get that overturned and get my payments back, or come to some 'arrangement' with the bank so we can both walk away.
It never hurts to contact the Bank to see what they will settle for. You may be able to negotiate a lesser amount to rid you of the Restriction if you don't want to sell up.0 -
Eggbox,
Perhaps if I can put together a 'leverage' package to the bank. Stating the agreement never shown in Court, letter from bank manager 'fulfilling the agreement'.
I can say that I am 'prepared' to go back to Court with this, as it was set Aside initially. Say I am in no position to pay the monthly instalments any longer, can we reach an agreement?
However, I did test the water with a £20K settlement before it went to Court and it was swatted away.
Do you think they would go for less than £5K, not that I have £5K, but it has probably been written off at the bank anyway?
Thanks Again0 -
flyinglizards wrote: »Things have got tight recently with funds, it is really hand to mouth and I have missed a few payments on the order.
If you are struggling to find a £150 a month and are already on an interest only basis with your current lender. Then you may struggle under the new lending rules that came with imposition of the Mortgage Market Review to remortgage. As affordability is now a key factor.0 -
Thrugelmir,
Thanks for adding your thoughts, yes a good point.
When I say struggling, I think I really mean, I am fed up with the barrel they have me over with this. £150 does not even pay the interest, they wanted £600 and put that on the letter to me as an agreement 'after;' the Court ruling of £150.
The mortgage company know all about our situation and are quite keen to move forward if we can do something with the Restriction.
Thanks0 -
flyinglizards wrote: »When I say struggling, I think I really mean, I am fed up with the barrel they have me over with this. £150 does not even pay the interest, they wanted £600 and put that on the letter to me as an agreement 'after;' the Court ruling of £150.
That's a different issue entirely. As banks on the whole normally lend money on a secured basis in one form or another. Not their business to take excessive risk with customers deposits. Banks would go bust if people were allowed to speculate and walk away when the business goes belly up. Reward and risk go hand in hand.0 -
I agree with Thrugelmir - if you are struggling now, on an interest only mortgage, then there is no way under the new mortgage lending rules that you will be able to remortgage. This is a fantasy that is not going to happen even if the restriction was removed.
I am afraid I agree with the comment that you probably need to sell the house, clear as much as possible of your debts and start again. Sorry, I know it's not what you want to hear.0 -
The problem is the Bank feels it is in a postion of strength as it believes it has a secure CO and a monthly repayment of £150. So it's not going to settle feeling it's in a position of strength. The only way you can get to them, initially, is to stop payments (or more cleverly reduce it to £1 a month saying that's all you can't afford). Then, maybe, they might listen?
A lot of High Street banks not getting paid have sold off their CO's obtained to bottom feeding debt collection companies such as Lowell, Marlin and Capquest. They would normally sell off a £30k debt for around £3k (and even less) so nothings impossible regarding a settlement figure but they need to be shown they won't get a return, either, for a very long time or even at all.0 -
Thanks eggbox, I really appreciate your perspective.
Thank you for your time
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