Charges Register

planemad

Who can repossess a property if there are 2 secured debts on the property below is a copy of a charge register from the official copy register.


2 (08.12.2005) REGISTERED CHARGE dated 17 November 2005.

3 (08.12.2005) Proprietor: BANK A

4 (17.03.2006) Charge dated 20 September 2005 in favour of BANK B

Charge 4 is dated before charge 3 but BANK A has the charge on first.

Hope this does not confuse anyone.

nixinix

I understood anyone with a charge can reposess - in this case it just means that both have a call on the proceeds of the sale following repossession. HTH.

planemad

But charge one are the mortgage company so they should be classed as first creditor.

silvercar

Looks like bank B didn't register this charge for two years. It could be that charge by bank B is for a secured loan and the owner wanted to remortgage so bank B agreed to a deed of postponement, enabling bank A to hold the mortgage as first charge over the property.

It doesn't really matter in that either can repossess.

Any buyer would require both charges to be cleared, so a private sale would need to provide enough funds to clear both charges or the owner to provide money from elsewhere to clear the charges.

If there was a repossession and negative equity, whichever bank was left short of money would have the right to chase the borrower for the difference.

Richard_Webster

Either can repossess. If the first named chargee A does so then it sells and if anything is left over it has to hand the change over to the second named chargee B, who takes it's money and then if there is anything left it goes to borrower.

If second named chargee B repossesses and sells it has to pay out the first chargee A before getting any money, so would only do so if it was worthwhile.

The discrepancy of dates might be a failure to register or possibly the first chargee A insisted that Bank B postpone its charge to A.