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Charging Order? The myth

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Charging Order? The myth

edited 30 November -1 at 12:00AM in Debt-Free Wannabe
4.3K replies 601.6K views
bluebackblueback Forumite
78 posts
edited 30 November -1 at 12:00AM in Debt-Free Wannabe
I feel that this is so important that I thought a new thread should be made to highlight the importance of understanding the law on Charging Orders and how many people are stuck with their property in the false believe that they have had a Charging Order put on their property.

In particular the thousands of Northern Rock customers that have had unsecured debt turned into secured debt by their tactics.

If your property is jointly owned a creditor will not be able to obtain a CO against you, they can only get what is called a restriction.

The laws on Restrictions are totally different to Orders, the most important being there is NO OBLIGATION for you to pay any of the proceeds of the sale to the creditor.

However, during the whole court process you go through the reference from all parties (especially the creditor) will be to charging order and NOT to restriction. This is done in order to decieve you believing you are stuck with a CO.

However, not all solicitors are aware of the law in this regard and it is important that you raise this point with them in the first instance before proceeding with them

Quote:

Restriction


The restriction which can be entered on the register where a charging order is made against one of joint proprietors is in the following form :-
No disposition of the registered estate is to be registered without a certificate signed by the applicant for registration or his conveyancer that written notice of the disposition was given to [name of person with the benefit of the charging order] at [address for service], being the person with the benefit of /I]an interim[I /I]a final[I charging order on the beneficial interest of (name of judgment debtor) made by the (name of court) on (date) (Court reference.…).
You are therefore correct in saying that when the Land Registry receives an application to register, for example a transfer, we will not ask to see the consent of the person who has the benefit of the charging order. We will only want a certificate from the applicant for registration or his conveyancer that the person who has the benefit of the charging order has been given written notice of the transfer.

If both joint owners sell the land to a third party the restriction will be cancelled when the transfer to the purchasers is registered.


So I hope I have provided benefit to everyone who has had a restriction entered against them (especially NORTHERN ROCK CUSTOMERS) who believe wrongly that they are Charging Orders.

You now have the freedom to go and sell your houses with the knowledge that the vultures can do nothing

I also think this VERY IMPORTANT point needs highlighting by the moderators as many many people are stuck with houses that they believe they cannot sell
«134567435

Replies

  • lisaflisaf Forumite
    273 posts
    subbing to this thread
  • bluebackblueback Forumite
    78 posts
    The restriction which can be entered on the register where a charging order is made against one of joint proprietors is in the following form :-

    No disposition of the registered estate is to be registered without a certificate signed
    No sale of the house can be completed without a signed letter in the format prescribed
    by the applicant for registration or his conveyancer that written notice of the
    by the people selling or their solicitor

    disposition was given to [name of person with the benefit of the charging order] at
    stating that notice is given to Northern Rock at their registered head office address
    [address for service], being the person with the benefit of /I]an interim[I /I]a final[I charging
    being the creditor who has a secured charge on the property

    order on the beneficial interest of (name of judgment debtor) made by the (name of court) on (date) (Court reference.…).
    of the debtor who has the CCJ at the court blah blah

    we will not ask to see the consent of the
    We dont need diidly squat from Northern Rock or need to inform them of the pending sale

    person who has the benefit of the charging order. We will only want a certificate from the applicant for registration or his conveyancer that the person who has the benefit of the charging order has been given written notice of the transfer.
    All we need is the letter confirming that Northern Rock has been informed of the date of completion

    If both joint owners sell the land to a third party the restriction will be cancelled when the transfer to the purchasers is registered.
    On completion date Northern Rock can swing on my finger and wave goodbye to their fake seurity

    I hope this helps to the PM
  • tortytorty Forumite
    58 posts
    blueback wrote: »
    I feel that this is so important that I thought a new thread should be made to highlight the importance of understanding the law on Charging Orders and how many people are stuck with their property in the false believe that they have had a Charging Order put on their property.

    In particular the thousands of Northern Rock customers that have had unsecured debt turned into secured debt by their tactics.

    If your property is jointly owned a creditor will not be able to obtain a CO against you, they can only get what is called a restriction.

    The laws on Restrictions are totally different to Orders, the most important being there is NO OBLIGATION for you to pay any of the proceeds of the sale to the creditor.

    However, during the whole court process you go through the reference from all parties (especially the creditor) will be to charging order and NOT to restriction. This is done in order to decieve you believing you are stuck with a CO.

    However, not all solicitors are aware of the law in this regard and it is important that you raise this point with them in the first instance before proceeding with them

    Quote:

    Restriction


    The restriction which can be entered on the register where a charging order is made against one of joint proprietors is in the following form :-
    No disposition of the registered estate is to be registered without a certificate signed by the applicant for registration or his conveyancer that written notice of the disposition was given to [name of person with the benefit of the charging order] at [address for service], being the person with the benefit of /I]an interim[I /I]a final[I charging order on the beneficial interest of (name of judgment debtor) made by the (name of court) on (date) (Court reference.…).
    You are therefore correct in saying that when the Land Registry receives an application to register, for example a transfer, we will not ask to see the consent of the person who has the benefit of the charging order. We will only want a certificate from the applicant for registration or his conveyancer that the person who has the benefit of the charging order has been given written notice of the transfer.

    If both joint owners sell the land to a third party the restriction will be cancelled when the transfer to the purchasers is registered.


    So I hope I have provided benefit to everyone who has had a restriction entered against them (especially NORTHERN ROCK CUSTOMERS) who believe wrongly that they are Charging Orders.

    You now have the freedom to go and sell your houses with the knowledge that the vultures can do nothing

    I also think this VERY IMPORTANT point needs highlighting by the moderators as many many people are stuck with houses that they believe they cannot sell
    i have 2 charging orders against me for circa 14k, i have split with snake with tits, but i am told i cannot sell, about 5k equity in house, help appreciated
  • bluebackblueback Forumite
    78 posts
    If you own the property jointly then you have not got full charging orders you have charging order restriction which means you are free to sell the property as long as your solicitor provided notice to the creditor.

    A creditor cannot be granted a charging order on a jointly owned property

    The proceeds of sale will be yours and the restriction falls away on completion.

    I am not a solicitor and you should get proper advice before proceeding

    Cheers
  • torty wrote: »
    i have split with snake with tits

    :rotfl::rotfl::rotfl:
    My Debt Free Diary I owe:
    July 16 £19700 Nov 16 £18002
    Aug 16 £19519 Dec 16 £17708
    Sep 16 £18780 Jan 17 £17082
    Oct 16 £17873
  • Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.
  • MarthasdadMarthasdad Forumite
    155 posts
    Read this with great interest and think I've been diddled!

    We sold our house 3 years ago and had 2 charging orders on debts just in my name, but the house was in both mine and the wife's name - we had to pay the creditors with the proceeds (around £11k).

    Guess there's nothing I can do about it now, and at least we paid off the debts, which would've had to be paid at some point, but the Bas****s conned me into paying in full when I didn't need to!!?:mad::mad::mad::mad::mad:
    Amount saved by cutting down on :beer: since 24/08/2009....... :j£81.78:j
  • bluebackblueback Forumite
    78 posts
    This is why it is so important to find a solicitor that knows the difference. I was resigned to having 15k automatically removed from the proceeds.

    My solicitor (normal high street solicitor) promised me that I wouldn't lose anything.
  • moneybustermoneybuster Forumite
    313 posts
    is this just northen rock or dose it apply to all lenders creditors going for charging orders

    MB
    three things for the life ahead
    Faith Hope and plenty of Charity
  • bluebackblueback Forumite
    78 posts
    No its not just Northern Rock

    Any creditor that uses the charging order route to change an unsecured debt into a secured debt is not fully securing their debt if the land is owned jointly.

    As long as the conveyencor provides notice to the creditor and gives an undertaking to the purchasers solicitor that the creditor has been notified and that the restriction will become void on purchase, they are fulfilling the law and as stated above, it is then upto the creditor to act before completion takes place.

    To give a false undertaking to another solicitor is a serious offence and therefore, all solicitors will duly complete the transaction based on any undertaking given by a fellow solicitor.

    A creditor rarely has time to act before the signatures are made.

    Remember I am not a solicitor and you should confirm this with one before starting the process, but it is all there on the Land Registry website

    Hope this helps
  • were not educated to understand any of what is posted so can someone help please, we are due to attend court next week to have the interim charging order made final and we think it will be a charging order that is made final

    we jointly own the property so what do we do-say to the judge - solicitor for nr? we can’t afford solicitors and went to cab who said it was best not to fight it as it will be a lot of stress for the same result so we’ve had to fight this on our own.

    we argued that were on a dmp but because nr got a forthwith judgement right after the ccj was given it's all so confusing.

    nr no my oh has suffered a breakdown in the past and we are keeping to the agreed dmp even tho they refused the dmp offer but they just don't care they just keep on putting us under stress look at the time now that's what i mean about stress it's bothering me in case they force us to sell our home.

    if someone can please help us by saying what we should say to there solicitor or the judge next week about the restriction it will help us as i'd love to wipe the smile of there face

    ta for any help
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