Charging Order? The myth

Loobeyloop

Hi, I hope this is the right place for this, I am new. Thank you so much for this thread, you have given me and my partner some hope.

In 2008 I was taken to court by an unscrupulous finance company, for a debt which I didn't owe. Despite ALL of the evidence being in my favour, the County Court Judge decided against me. The debt with costs etc, totalled over £23k, and I was given 28 days to pay. In October 08 we attended a charging order hearing, following which, we assumed we had a charge for the debt on our home. The judge told me, the charge would only affect MY share of our jointly owned home. Following extensive reading on this forum, we are encouraged to read that infact, this can only be a restriction, not a charge, although the finance company did apply for a charging order. We currently have no plans to sell our home, but have been thinking we will be ordered to sell, when our 13 year old son becomes of age. Have we been worring needlessly, does anyone out there have the answer please?

Thank you for taking the time to read this.

brightondavid_2

In general what you say is correct, however,with regard to NR, the majoirty of the charging orders are to do with their "together" prouct ie borrowing 125% of the property's value. Therefore any charging order would be in joint names (if it was a joint mortgage in the first place), and not that of a single named charging order on a joint mortgage.

If a further name were to be added, then NR will call on the charge.

brightondavid_2

Overlooked Aspect
In general what you say is correct, however,with regard to NR, the majoirty of the charging orders are to do with their "together" prouct ie borrowing 125% of the property's value. Therefore any charging order would be in joint names (if it was a joint mortgage in the first place), and not that of a single named charging order on a joint mortgage.

If a further name were to be added, then NR will call on the charge.

aero1

fantastic thread! thanks xx

Paulxo

What if they manage to change the wording of the restriction to something more favourable to them? e.g.

“No disposition of the
registered estate is to be completed
by registration without a certificate
signed by [name the creditor with the
benefit of the charging order and their
address], being the person with the
benefit of an interim/final charging
order on the beneficial interest of
[name of judgment debtor], or his
solicitor that he was given written
notice of the disposition at least 14
days prior to the disposition or without
an order of the court which granted
the interim/final charging order.”

This would give them more than 14 days.

jackmark

Ok Im trying to get my head around this.
Assuming I sell the house with the charging orders on and the creditors dont get the money before the sale is complete and the restriction falls away, what happens to the debt? Is it still enforcable or does it get wiped off as well?

Sparklyfairy

Paulxo wrote: »

What if they manage to change the wording of the restriction to something more favourable to them? e.g.

“No disposition of the
registered estate is to be completed
by registration without a certificate
signed by [name the creditor with the
benefit of the charging order and their
address], being the person with the
benefit of an interim/final charging
order on the beneficial interest of
[name of judgment debtor], or his
solicitor that he was given written
notice of the disposition at least 14
days prior to the disposition or without
an order of the court which granted
the interim/final charging order.”

This would give them more than 14 days.

Do you have that on a charging order? I know the paperwork has to be done by the Land Registry so I believe they have to stick to some rigid guidlines otherwise everyone who receives a co would have pretty much anything written on theirs. FWIW, I received my interim co at the end of Oct (I recv'd the paperwork with similar wording to above) and it doesn't mention any time limit at all. If it did, I'd call LR & ask them to clarify this as it's clearly not the norm..

Paulxo

No I don't.

I just wondered if they could enter that, but I've answered my own question by looking at the restriction application I've got. My hearing is tomorrow.

Sparklyfairy

Paulxo wrote: »

No I don't.

I just wondered if they could enter that, but I've answered my own question by looking at the restriction application I've got. My hearing is tomorrow.

Good luck with it...it can be nerve wracking but stick to your guns & hopefully it'll be ok. Please come back & let us know how you got on, ok?

Paulxo

Hi Spark

yes it's later today.

I called the land registry & they said it's possible the house is sold before the creditor receives payment. But the restriction remains in place. They weren't able to tell me what this meant for the buyer/new owner. I suspect this kind of thing would turn off a buyer? Would the debt pass over? What happens to the debt?

I'll let you know how I get on.