Charging Order? The myth

eggbox

That's a strange, one?


Hopefully, LRR will be burning the midnight oil trying to sort this one and will explain all tomorrow??

Land_Registry

Not quite the midnight oil but I am in discussion with the local office

I should stress though that whilst the two restrictions appear to be linked they have different requirements. The first requires a certificate by the applicant or their conveyancer whilst the second and modified form K restriction requires a certificate by the actual creditor.

Hopefully I will have something extra to share shortly although wembley14 is of course in direct contact with the local office as well now

eggbox

LRR

Can I ask if a standard Form K Restriction isn't complied with, when a property is sold to a third party for value, would it still be overreached and removed?

Land_Registry

eggbox - no it would not be. The restriction has to be complied with. Overreaching relates to the restriction's automatic cancellation after the Transfer has been registered. The Transfer cannot be registered unless the restriction is complied with.

eggbox

Thanks LRR


I think that makes it, fairly, obvious why Weebly is having problems? However, does the LR have to stick rigidly to the terms of the Restriction wording where it is definite the Restrictioner has been informed of the sale proceeding (for instance when they have discussed it with the buyers Solicitor) but refuse to provide a certificate of notification to the LR?

Land_Registry

eggbox - I'd already covered why I believed wembley14 was having problems and their direct contact has confirmed this, hence my post above as to the modified form K restriction and the different requirements.

The point you raise is the same one as I am now discussing with the local office in order to not only help wembley14 appreciate what is required from a registration perspective and why but also to share it with this thread but without any specific property/name details for obvious reasons.

As you will appreciate the example of a modified form K restriction is quite rare whilst having a form K and a modified form K on the same title is even rarer.

And I think it is again prudent to point out, especially for others viewing the thread, that our role is limited to giving responses to technical questions relating to land registration itself, not the general law around charging orders and debt/credit.

eggbox

Hi LRR


Thanks, again, and I do appreciate the difficulty on this one as it would require a judgement call by the LR to remove the Restriction as overreached.


It will be interesting to see what you uncover from the local office?

kookykathryn

That's the problem I had, the creditor refused to sign the certificate so I got nowhere!

wembley14

Hi LRR/EGGBOX
I have once again been in contact with local office but had no response from them.
The creditor is refusing to provide certificate of notification for 2nd registered restriction but acknowledged 1st restriction. what exactly is different in modified one which prevents them from acknowledging notification? How can they do this? It is for exactly the same debt. My solicitor has received correspondence from creditor when they notified them, so obviously know of sale, but refuse to acknowledge notification.
This is becoming farcical I just want to know what needs to be done for new owners to be registered as owners without restriction of beneficial interest in my name and NOT ON LEGAL ESTATE. What benefit is it to creditors to leave it on there or for the LR to leave it for new owners. I am not legally obliged to pay out of proceeds as it also belongs to my wife. When does the restriction become superfluous?

wembley14

Hi Kookykathrine
the difference with me and your dilemma is that I have actually sold my property and new owner is now living there and the restriction still hasn't been overreached, so the creditor has no reason to hold on to this restriction on somebody elses property.
I am just perplexed to how restrictor can refuse to acknowledge notification(certificate) and get away with not complying with restriction order. I shall be going to FCA AND LEGAL OMBUDSMAN and get things verified to see if this is legal.