Charging Order? The myth

Duckstrel69

Damn straight. I told them of my intention at the beginning of the process too :mad:. Anyway,thanks for all eggbox

eggbox

No problem but please report back what happens as your experience helps everyone in the same position!

Duckstrel69

I will indeed!

FBaby

This indeed makes no sense as surely the whole point of a charging order is for the lender to get the money via the sale on the basis that they haven't been able to retrieve the funds in another way. The reason for going through this process is to avoid repaying IF you believe that you shouldn't morally Hever to pay it for whatever reason.

JasmineStocks

Hi, just thought I would update this thread after I had so much help on here. My mum's house sale was finally completed yesterday. What I've learnt from this very stressful process was: restrictions are NOT the same as charging orders whatever the conveyancer says. That there are many conveyancers and solicitors who do not know the full facts about restrictions and charging orders. Always ask the question before using a conveyancer or solicitor in the sale of your house "do you know the correct procedures to follow in dealing with a restriction and a charging order" and ask them to explain how they deal with restrictions on a title of deed. I've also learnt that so called professionals do not necessarily know more than the average person who educates themselves. Also some companies will help you if you give them the full facts and keep them up to date. One of the restriction companies even lifted their restriction before the sale as it was holding up the completion (the conveyancers were holding up the sale not the restriction company). My mum is now happily debt free but she had to relinquish her share of the equity because the conveyancer would not go ahead otherwise. I shall be reporting my mum's conveyancer to the financial ombudsman as she was not acting in my mum's best interest. I shall also be going ahead with claiming back all the excessive charges that GE Money laid on my mum and step dad whilst he was in hospital and unable to pay his bills. Good luck to everyone and thank you for all the support you gave me.

flyinglizards

Hi,

I have found this thread today after many years of searching for a way out of a crushing Charging Order, forced upon me and my family after my business was closed.

I had read the bllaw doc about three-four years ago when it became available online, but had not known if it had been put into practice.

It was referenced in the start of this thread and I have been reading all posts over the last few days and the amazing people on here who say it can be done, from egg box to even the rep from the Land Registry and the success stories such as brightonian.

I don't want to babble on too long so will get to the point...

I attended Court against a CCJ on a bank overdraft my company took out. My company suddenly had to close because we lost a huge order overnight, due to the negligence of a supplier (another story), the bank simply folded up their tents and went.

I represented myself in Court because I had no funds, I got the Judge to Set Aside the CCJ because of the tactics of the creditor and the evidence I gave, I thought it would end there.

But they applied again, I represented myself, they had no actual copy of the personal guarantee they said they had. But the Judge (a different one this time) asked me to agree to pay a monthly amount and set a Charge on my share of the house.

I gave evidence in Court (sworn statement) that my wife had no idea of the guarantee and with my two year old son as co-dependants a Restriction was put in place on our house, my share only.

Skipping on a few years now, this and the business collapse had taken a terrible toll on all of us but we are still strong as a family unit and seeing the stories and help on here has given me such a boost today.

I have been unable to keep up payments recently, currently interest alone is £4000 a year.

I desperately need some help to work with a conveyancer or solicitor to work past the Restriction so I can rebuild our life with a re-mortgage. Our existing mortgage company have been fantastic throughout and are wanting to help, but they flagged up the Charge.

We do have some equity in the house, but I do not want to make a deal with the creditor. I have since found letters from the bank which cleared the original overdraft and no actual signed contract has surfaced which really call into question the whole CCJ in the first place.

I can go back to Court later to present that case, but some help and advice on a re-mortgage if at all possible given the circumstances would be really appreciated.

To be able to release the Restriction at the Land Registry so we can re-mortgage would be like winning the lottery, a new start.

Thanks

eggbox

hi flyinglizard


A Restriction is not a bar to a re-mortgage so you need to ask your lender why they are refusing?


To help give advice can you let us know how much the CO is for and what you are repaying, please? Also what sort of equity you have as it makes a difference to your options.

flyinglizards

Hi eggbox,

Thanks for the reply

The CO is for £30K + interest. The Court agreed on a £150 a month, which I have been paying. I don't know how much equity is in the house without a valuation, but prior to all the debt problems we were paying £1500-£2000 a month on our mortgage.

Effectively paying £65K off the initial mortgage as it was a repayment. We have been on an interest only switch for the last two years, as I mentioned the mortgage company have been wonderful.

We really don't want to sell up, our little boy is settled at a great school, my wife has now got a job there, I am freelancing.

It is all coming together apart from the spectre of a CO which hangs over us day and night.

I think with a bit of money and a solicitor in the original hearing, everything could have been different.

Thanks Again

eggbox

Getting the CCJ set aside might be your best option (given the information you have provided) but you will need to investigate if that option is still available to you in Court? Even if it is, be in no doubt it will be extremely difficult and you will need a good Solicitor who knows what he is doing which may be a bar financially? (It would also help to know why you agreed to repay £150 a month?)


If you do want to stay in the property it will be difficult to remove the Restriction without the CO it notifies being settled. The only way I can see you doing this is to sell your share of the property to someone else. You can do this because you and your wife are now "Tenants in Common" (as you have a CO against your share only) and now own 50% of the property each. The Restriction places no bar on you selling your share and the Restriction would then have to be removed by the Land Registry as, in their words, it would become "clearly superflous" as you would cease to have any financial interest in the property the CO is made against. This may be an option you can explore, maybe, if your wife could remortgage in her name only?


As far as your repayments are concerned, you are effectively settling with the creditor by making repayments. As the house is a family residence with children concerned; you creditor has no chance of getting an Order For Sale so you may need to reconsider what you are doing there?

flyinglizards

Hi Eggbox,

Thanks again.

There was confusion over what overdraft was signed on a personal guarantee. I did sign 'an' agreement for another loan in the bank managers office prior to the date they are saying. But it was signed over the table to keep the business going, I was never told of the implications and had no legal advice at all.

My manager thought he was doing me a favour, he was sacked, I then get a letter from the new manager six months down the line that the overdraft was satisfied.

However, the company took a very sharp dive financially as we took on a large job which was funded by us and returned by the client and we lost that client and a huge amount of work in place.

It killed the company overnight, a company which I put £120K of our own money from our previous house sale into over the eight years we were trading.

The bank have been incredible, taking their pound of flesh and I really have been stupid

If there was a way to convince our mortgage company we could re-mortgage perhaps taking 'some' equity out to rebuild our credit rating I am sure that would be a plan.

Things have got tight recently with funds, it is really hand to mouth and I have missed a few payments on the order.

It really is a right mess.

Thanks