Charging Order? The myth

eggbox

Well done Jasminestocks!

Hopefully the WRONG information you received and how you have fought against it will inspire others not just to accept Solicitor/Conveyancer advice and to check the facts out for themselves!

Good luck for the future!

JasmineStocks

Thank you Eggbox, and all the others who have commented on my original post, for your help. My mum's situation should certainly inspire others to choose their solicitors carefully and not believe everything they say. There are some solicitors out there (the restriction companies' solicitors, oh the irony) who do know the correct information and are only too willing to help.

JasmineStocks

I've just googled my mum's conveyancer and guess what? They are reviewed on moneysavingexpert.com. How I wish I had known from the start what they were like. Many many bad reviews. Oh dear, as soon as this is over I'll be adding my own bad review to the list....

kanute50

JasmineStocks wrote: »

Hi Eggbox, at last some wonderful news! I rang the restriction companies up today and they were so helpful and absolutely lovely. They both confirmed everything you have been telling me. They both told me that there is a specific order of priority for the charges and restrictions and that if there wasn't enough money for the last restriction to be paid then they accepted that, which is totally opposite to what the conveyancer told me. They said that my mum wouldn't be liable for the debts as the restrictions weren't in her name and that the money could only be taken out of my step dad's half of the house. If there wasn't enough money left then they said that would be fine and they didn't expect to be paid. They were so helpful and understanding. The conveyancer is still insisting that they have to be paid first when I rang her to tell her what they said. They told me that they wouldn't object to the sale and would let the conveyancer know this. I can finally see the light at the end of the tunnel. It just goes to show that you should choose your solicitor/conveyancer wisely and not just go with the one, which the estate agent recommends, which is what we did.

Well done, and good luck to you and your Mum.

JasmineStocks

Thank you Kanute50, I just can't believe it! If the sale falls through now then it won't be due to the restriction companies it will be because of our own conveyancer. Thank you for all the support!

JasmineStocks

Just thought I would post an update to what is going on at the moment regarding the sale of my mother's house. The last restriction holder has agreed to settle for less money so that there won't be a shortfall in selling the house (I have this in writing). Both restriction holders have confirmed that they do not object to the sale. The hold up now is trying to persuade the conveyancers that an RX4 will be sent after completion but they want this to be sent BEFORE completion, which the restriction holders cannot agree to. They have offered to give the conveyancer the discharge documentation to hold pending completion. I complained about my mum's conveyancer to the estate agent, who recommended them and I got a more senior conveyancer ring me up saying that it was their company policy not to go ahead with a sale with restrictions on it! Why couldn't they have told me this at the beginning in January when they had the register of title! It's shocking! They want my mum to sign a waiver saying that the restriction holders will take her to court for the remainder of the debt but there is no remainder as they have agreed to settle for a smaller figure! If I was stronger and didn't mind if this sale fell through, I would insist that the restriction holders were only paid out of my step dad's half of the equity after the charging orders have been paid. Legally this is all they are entitled to and my mum should be in line for some money left over but I will just settle for my mum not owing any money after this sale. I should find out tomorrow whether the sale will go ahead or not.

eggbox

I've had a bit more detailed info from JasmimeStocks and what her conveyancing company has put her through is appalling. It's also understandable why Jasmine just wants the sale to go through regardless of receiving any money due.


But it's important to understand that these Restrictions can only be placed on the LR register as they are against only one of the joint interests in the property. They have no legal right to claim repayment from the non debtors share of the proceeds when the property is sold. If that does happen then a legal claim should be made for the return of the money.

JasmineStocks

Yes, you are totally right Eggbox, if we all had conveyancers and solicitors who were doing their jobs properly then things like this wouldn't happen. My favourite quote from our conveyancer, when I read her the details of the restrictions from the register of title was "you are reading too much into the actual words of the register". The land registry makes it completely clear what the conditions of the restrictions are. It says "RESTRICTION: 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 ####, being the person with the benefit of an interim charging order on the beneficial interest of #####." I gave written notice of the sale to the two restriction companies, so to me in order for the restrictions to be removed the buyer's conveyancer has to issue a certificate to say written notice was given. If the representative of the land registry could give me advice on whether there is a standard certificate confirming they have been given notice, which has a document number, that would be very helpful, thanks. I'll do a bit more research myself. Thanks.

Land_Registry

JasmineStocks wrote: »

I gave written notice of the sale to the two restriction companies, so to me in order for the restrictions to be removed the buyer's conveyancer has to issue a certificate to say written notice was given. If the representative of the land registry could give me advice on whether there is a standard certificate confirming they have been given notice, which has a document number, that would be very helpful, thanks. I'll do a bit more research myself. Thanks.

The use of the term certificate is simply with reference to the line 'I/We certify.....' - providing those words are used then it becomes a certificate.
Any certification would mirror the wording from the restriction and would refer to the property, date of sale, date of when notice was sent and to whom and where. If they acknowledge receipt or write back then that can be referenced also.
I suspect eggbox has an example of wording used

Truckmuck

I am new to this forum. I am in the process of selling my house which has 3 restrictions on it totalling £23,000. This was from 2007 when me and my ex husband split up, I got depression and was off sick for 6 months and got into financial difficulties and couldn't pay anything. I was married to a Solicitor who was (and still is) very tight with his money and did not support me through this time. However, I instructed my Solicitor as per these posts to give notice to the creditors that the house was being sold. He also informed my buyers Solicitors. However, they responded as follows :
"We note your client does not intend to repay these liabilities, however, we will require Rx4s to be provided at completion to release the restrictions from the register as merely giving notice will only comply with the restriction and we will require the restriction to be removed. Please proved your undertaking that these will be removed"
My question is firstly will the restriction automatically fall off the register on completion of the sale if we have complied and secondly, any advice on hiw to proceed would be much appreciated. Thank you!