Charging Order? The myth

Paulxo

Jack

I don't think the restriction falls away. I was told today it remains in place. What the upshot of this is though I don't know

Silvafox

Paulxo wrote: »

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.

Hi, I have recently been through this. The debt can't be passed on to the new owners and the buyers solicitors will require a clear title for the sale to go ahead. Which means that all restrictions or orders will have to be dealt with prior to exchange and then the sale won't complete until both solicitors agree that clear title will be given.

fatbelly

Right back to post #1 of this thread:

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.

Paulxo

Right what happened....

Firstly, they were quite surprised to see me! Not many people go to these apparently. Second, there were loads being done at the same time. It is obviously quite a formality.

In my case, the judge asked 'Can you pay it?'. 'No' I replied. He said 'Well, I always like to ask'.

He then entered a charging order/restriction. I said 'Hang on. I've been paying this sum off for months but it hasn't been considered sufficient.'

He asked 'How much?'

I replied '£15 a month'.

So he said 'Right, in that case I'll make that as long as you continue to pay £15 a month that charge won't be enforced'.

And that was it. I couldn't prevent it. However, that's still not too bad, as it means the debt won't be repaid for around 14 years. Which I don't see the point of myself, but obviously they're hoping I sell up.

One thing I forgot. The judge said he could postpone if I could pay in 3 months in full. I have some money coming through in July, so I said how about that?? He said that's not 3 months away so never mind.

If the representative for the bank had spoken up at this point, they would have seen their money a lot sooner, so maybe it worked out well.

Let me know what you think - be interested to hear your responses and I hope this has helped.

Now this is a restriction on here which basically will never be enforced. On the sale of the property (if ever) I may escape paying as mentioned above.

Sparklyfairy

Your experience in court sounds about right. I never had my dj ask if I could pay in 3 months, so maybe dj's are getting softer?! If you wanted you could always go back to your creditor & do a F & F...

Just continue to pay the £15/month (on time) so the creditor cannot try for an order of sale (unlikely but they may try!)

As for your earlier post re: your conversation with the LR, what they told you seems to contradict what others have said happens AFTER they sold their homes..so I really wouldn't worry to much about it if you did decide to sell.

Paulxo

What's an F & F?
I'm going to complain to the FO and see what happens.

Thanks

Sparklyfairy

Paulxo wrote: »

What's an F & F?
I'm going to complain to the FO and see what happens.

Thanks

Full & final offer..(could potentially be 20-65% of the total amount owed.);)

thechippy

jackmark wrote: »

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?

The debt still exists...;)

thechippy

Loobeyloop wrote: »

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.

A rather late reply, but for the avoidance of doubt.....

.....If you have a restriction and want to sell, ensure you have a solicitor who is ofey with charging orders.

All the solicitor has to do is inform the creditor of the impending transfer 14 days prior to completion and give the buyers solicitor a letter of undertaking that the restriction will fall away at the point of sale.

The creditor will rarely have time to sort themselves out and claim thier portion in time.

So, house sold, you have the equity and all the creditor can do is continue to try and sue you for thier money....;)

Forced sales are VERY rare.......:D

BeeNoticed

We have recently had a CO or what looks like a Restriction (according to this thread) on our joint-mortgage property for a debt of £17000 due to my husband and his previous partner's mortgage shortfall from 1988 (mortgage) although my hubby has no idea how the debt collectors have come to this amount, or whether or not he owes it, as they separated under unpleasant circumstances and handed back the keys and left the Abbey National to sort it all out.

So he can't defend himself nor accept that he owes that much and come to agreement...so we are in limbo...but this information has been helpful because we are desperate to move out of our starter home to something bigger.

So thanks to all in this thread, its been most useful and it has raised our hopes that if we seek a good solictor we may be able to move forward. Cheers!