Charging Order? The myth

Sparklyfairy

That's twice I've read now on this thread that solicitors are getting in touch with conveyancing solicitors before completion. How are they now aware a house is for sale?


Lazy B, I shall keep my fingers crossed for you that your sale goes through swimmingly. Yes please update the thread with how you progressed, that will be fab.

Lazy_B

Our conveyancer contacted creditor for balance of debt, so they could do their sums, so I guess now the creditor has sussed we are selling, but if they play up then we will cancel sale, be a shame but rather that than let them rip me off! Pity they couldn't have asked me for balance instead.

Feeling quite optimistic at the mo, so it's just wait and see.....

Sparklyfairy

Ah I see...why is this ringing alarm bells to me though? If he understands what a Restriction entails, then getting ANY balance of debt from the creditor/holder of the charge seems pointless..the problem is that you won't know if the creditor has been paid from the sale until after completion. BE CAUTIOUS!!

eggbox

sparkly

Unfortunately, Solicitors are not understanding (or are ignoring) what the terms of a Restriction are. As most sellers, understandably, are unaware of what a Restriction is (as they are told, incorrectly, that they have a CO on their house) then the status quo is being maintained in the creditors favour.

Until more Solicitors are told not to pay up front (or are deprived business when they refuse) then nothing will change. Hopefully, threads like this will spread the message quicker and speed up that change.

eggbox

Lazy_B wrote: »

Our conveyancer contacted creditor for balance of debt, so they could do their sums, so I guess now the creditor has sussed we are selling, but if they play up then we will cancel sale, be a shame but rather that than let them rip me off! Pity they couldn't have asked me for balance instead.

Feeling quite optimistic at the mo, so it's just wait and see.....

Has your conveyancer had any feedback off the buyers conveyancer regarding the Restriction?

Lazy_B

Sparkly, think they just assumed I'd be paying it, until I rang them and said no, as its a restriction only.
Eggbox, I've not heard that they have, only heard that they are eager to exchange!
Like I said, just wait and see, story of my life

Sparklyfairy

Ah ok, I see. However, if anyone has read this thread, BEFORE you hire a solicitor to do your conveyancing - put them through a quiz so to speak to see if they're worthy of your custom. Tell them you have a Restriction & what do they know about them? It appears there are many more clued up solicitors now compared to back in 2010, so that's a positive sign.


Lazy, I'll still keep my positive vibes coming your way for your completion by the end of the month! x

summer33

Hello to you all

Have tried to read as much on this thread as I can, but cannot find the answer to a couple of questions regarding a charging order.

We have joint mortgage, but my husband received ccj for mbna debt that was sent to arrow global

They have wrote to use aggreeing to our £10 per month offer on a debt of £1684. They have said though they are still applying for a charging order. This is the first we have heard bout this. I understand after reading on here it will be a Restriction, but wojld like to ask the following questions.

1. What costs will we incurr because of this?
2. When the debt is paid, will the restriction authomatically be removed, or do we have to apply, and again are there any costs to us?
3. Will we have to attend court at any time?

eggbox

summer33 wrote: »

1. What costs will we incurr because of this?
nothing. The creditor has to pay the court fee to register the charging order
2. When the debt is paid, will the restriction authomatically be removed, or do we have to apply, and again are there any costs to us?
no you have to apply to the land registry using form rx4. (but i don't think there is a fee involved)
3. Will we have to attend court at any time?
no, but it is in your interests to do so for two reasons; 1) to "try" and stop the order being made. There may be little chance of succeeding on this but however little chance there is, if you don't attend it will be granted regardless 2) to prevent interest being added to the debt as some unscrupulous creditors try to claim interest (statutory and contractual) on the debt owed even when it's not allowed. As a lot of judges are not up on this area of law it can slip through.

summer33

Thanks eggbox for your reply.

I find the idea of having to go to court in front of a judge a bit daunting, scary in fact.

Will I need to take proof of all my debts and arrangements we have in place ?

Oh dont like the idea of this, but suppose too late now, our own fault for not keeping up with the payments.