Charging Order? The myth

eggbox

Terryw


I've often wondered the same thing! Could be worth emailing a few Solicitors to make them aware of this. Especially as there are thousands of Charging Orders granted every year and the market for such services would be huge?

Midnightfright

Thank you so much for the information on this subject. I have read the thread at least a hundred times and now starting to understand the minefield of charging orders.


I am myself in the middle of a sale with an ex partner and there are a couple of these Restriction Orders on the house, one in each of our names, the one in my name is not even been spelled correctly.


After a very frustrating several days to try and get the solicitor to understand the law regarding these, I have now printed off lots of information & copies of the land registry to take over to their office to prove my point. We hope to complete at the end of May so I'm hoping that this can be sorted out now instead of the solicitor just worrying about the equity.


Thankyou again for all the advice

eggbox

All the info required is on this thread (backed up by the Land Registry) but so, unfortunately, are examples of Solicitor unhelpfulness.


The main thing I would impress on your Solicitor is that a Restriction is not meant to prevent a sale. It only acts as a notification to the creditor that funds may be available they can obtain. But there is no legal obligation attached to the Restriction, either by you or your solicitor, to hand funds over upon the sale. If you say no then your solicitor has a duty to follow your wishes as third party interests are not his concern. If he says different just politely ask him to explain where it states he has to pay?


You buyers Solicitor will be the main obstacle, though, and you might need to follow the approach by Wembley14 in saying you are happy for funds to be paid after the new registration takes place and the Restrictions are removed as overreached.

wembley14

Hi eggbox


In reply to your "certificate" question. My solicitor notified the creditor of sale and should have received written confirmation of the notification. This would have been the "certificate". The buyer then needs this to transfer new owners on land registry on completion for compliance of restriction order.


" no disposition of the registered estate is to be completed by registration without a certificate signed by or on behalf ++++
that written notice of the disposition was given to the said +++"


That's the only certificate needed.

garyshh

Hi
Advice would really help. in 2000 I went to live in northern Ireland with my wife, and while there I started a business. I received a loan from an organisation that helped start new businesses... the business did not last long and I came to live back in the UK. back in 2004 I received an interim charging order notification from them. Doing what allot of people with financial problems tend to do, I berried my head in the sand and hopped they would go away. Well guess what it did for ten years.

I never received a single notification from them until the beginning of April 2014, saying that I owed them more than double, and that if I did not pay within seven days they would be taking me to court to force sale of my property, Being older and wiser I went to seek advice from the Citizens advice and they said I should contact the creditors right away. I explained my situation that I have a joint mortgage and my wife is disabled and we have two children, surely they could not force us to sell our home after such a long time not contacting us...

I never had any notifications regarding full charging orders and my wife was never given an opportunity to have her say... surely there must be some law that says creditors have a duty to inform you regarding debts that are mounting with interest. so anyway on the advice of the cab I rang them with a small offer on the 11 April they emailed me with confirmation of our telephone call but they have not got back to me yet... could they be bluffing?? sorry for the long thread, but just trying to get has much detail out there

thanks for any advice...

eggbox

Hi garyshh


Firstly, what creditors say they are going to do is not always what they will or can do. But if you can provide a few more details it would help.


Who is the creditor and is the debt for the business loan in NI? Also, to get an interim charging order the creditor must have first gained a county court judgement. Were you notified of this?

Spongebob64

Spongebob64 wrote: »

Back in December 2007 Northern Rock managed to obtain a charging order against my property. At the time I was having financial difficulties and I had made arrangements to make reduced payments. However, one payment was somehow missed, which I was unaware of until the day of the hearing and Northern Rock managed to get their Charging order.

Since then I have haven't heard anything at all from Northern Rock and no payments have been made against the debt and there were no orders from the court to make any payments either.

The mortgage is in my sole name, but there is also a legal agreement in place between myself and my wife to protect £40,000 which she provided to cover deposit and legal fees.

Since then my situation has changed somewhat and I now have one severely disabled child who receives the higher rate of DLA and the higher rate mobility allowance. The house has also been adapted to meet his needs. In addition, I also have 3 children who receive the middle rate of DLA.

I have today received a letter from Mortimer Clarke Solicitors asking me to contact them to discuss non-payment of the loan and to arrange a way of paying it back. They say if I don't phone they will take steps to recover the debt. I understand that the debt was sold by Northern Rock to Marlin Europe and Mortimer Clarke are acting on their behalf.

My question is how should I deal with this approach from Marlin and if Marlin has purchased the debt from Northern Rock what happens to the charging order? I'd assume it is still in Northern Rocks name, so would Marlin have paid it off when they purchased the debt? I had a look on Trustonline and there was no mention of the debt.

Thanks

Mortimer Clarke Solicitors are still chasing me and threatening to go for an attachment of earnings order. They are asking me to fill in an income and expenditure form and they have also been phoning me and asking for token payments as well.

Just after some advice regarding what I should do as they are putting an awful lot of pressure at the moment

eggbox

spongebob

1. Write to MC explaining your circumstances.
2. Explain you only wish to correspond in writing
. in future
3. Explain if their client is so desperate for a
. token repayment you can offer £1 a month

Then leave it at that.

Duckstrel69

Hi I'm new to MSE and I've made my way thru most of this thread (invaluable information btw, thanks everyone) but in case I've missed 'owt, before I push things with my none too intrepid conveyancer, could I check with you guys that I'm along the right lines here:

I’m selling my house and it has an interim charging order on it. This was made 6 years ago, and I’m a co-owner with someone who is not responsible for the debt, so there cannot be a final charging order made(?!). Am I right in thinking that as long as the solicitor acting on behalf of the creditor has been notified (they have sent my conveyancer a statement of what needs to be paid to ‘redeem’ the charge, so they are aware a sale is pending ), that this could act as a ‘certificate’ of proof for my buyer’s solicitor in accordance with the Land Registry rules, so that the sale can then proceed and upon completion of the sale the restriction will be dropped because it’s against my share of the property and not a restriction on the sale of the property? (It is my intent to repay the debt out of the proceeds of the sale through my conveyancer, so I’m not trying to duck out, merely trying to organise it so that I don’t have to pay before the sale goes through, as I don't the money kicking around strangely enough)
Thanks, any help would be much appreciated

eggbox

Duckstrel69 wrote: »

I’m a co-owner with someone who is not responsible for the debt, so there cannot be a final charging order made(?!).

A Final Charging Order can be made it's just many creditors don't bother a the Interim order has much the same effect

Duckstrel69 wrote: »

Am I right in thinking that as long as the solicitor acting on behalf of the creditor has been notified (they have sent my conveyancer a statement of what needs to be paid to ‘redeem’ the charge, so they are aware a sale is pending ), that this could act as a ‘certificate’ of proof for my buyer’s solicitor in accordance with the Land Registry rules

It depends what the Restriction wording states. If its the standard Form K then your Conveyancer only needs to give written confirmation to the Land Registry that they have notified the creditor. Some Restrictions, though, require the creditor to confirm to the LR in writing they have been notified.

Duckstrel69 wrote: »

so that the sale can then proceed and upon completion of the sale the restriction will be dropped because it’s against my share of the property and not a restriction on the sale of the property?

The Restriction serves as a warning to the buyer that a debt exists against one of the owners and to the creditor that a sale is being made. It is removed when a sale for value occurs as it becomes overreached as the buyers interests take priority.

Duckstrel69 wrote: »

(It is my intent to repay the debt out of the proceeds of the sale through my conveyancer, so I’m not trying to duck out, merely trying to organise it so that I don’t have to pay before the sale goes through, as I don't the money kicking around strangely enough)

Has the buyers Solicitor/Conveyancer requested the Restriction be moved prior to the sale?