Charging Order? The myth

MIKE770

that is what they are hoping you will do? read previous reply and digest = it is a threatogram???

harisumo

Ok, thank you for the replies, I feel a whole lot better now, this thread is such a lifeline. Eggbox, if you remember wherebouts the case law is in this thread I'd be grateful to be pointed in the right direction for future reference. I might just hold tight for while to see how they follow that letter up and try not to panic so much whenever I get one of these letters but they do seem to get more and more extreme as time goes by. Thanks again!

eggbox

Caselaw - 'Mesher' type orders – provides protection as long as a minor is resident at the property concerned. The use of such orders was confirmed by a ruling in the case of Harman vs. Glencross 1986. Further powers are provided in the Trusts of Land and Appointment of Trustees Act 1996.

Caselaw - Royal Bank of Scotland vs. Etridge 2001 - This case established the precedent that, where a joint loan has been taken out by, with a jointly owned property as collateral, such as the matrimonial home, it is incumbent on the lender to explain to all lendees at the time of signing the potential consequences of default. In this case it was ruled that one party had signed the forms without being informed by the lender of the possible consequences and that the Royal Bank of Scotland did not have the legal right to enforce by way of charging order.

Caselaw - Bank of Ireland Home Mortgages vs. Bell 2001 - This case established the circumstances in which an order for sale would be granted, even if it concerns a family home. The equity available on the property must be sufficient to pay off the judgment creditor and all other interested parties and still leave enough money to adequately rehouse the debtor and dependent.

harisumo

Thanks Eggbox but I don't think any of that case law suits my situation as I am retired with no dependants, living off a small pension and my husband on a low wage. The loan was in my name only and so is the restriction, my husband being on the higher income has paid more on the house than me in the last few years, we have had an interest only mortgage due to financial difficulties and will need to either try and catch up or sell in the next couple of years or so, I did think about equity release but with the restriction I think that is a no hoper now. If we were forced to sell then with a reasonable price for the property we may could afford something else so the third case law wouldn't apply either.

eggbox

Again, to repeat; don't do the bottom feeders job for them!


My advice is to explain to them your circumstances and explain you can only afford £1 a month due to those circumstances. Explain you are trying to sell your property (whether you are or not is irrelevant) but until you do that is all you can afford.


The fact you are retired is the biggest hurdle THEY have as no Judge is going to evict a retiree for a debt purchaser who has paid, as I said, about a tength of the debt value. It wouldn't be proportional.

harisumo

Thank you again Eggbox. I'll try to go back to square one now and enjoy the forthcoming weekend.

eggbox

As FDR rightly said,


"The only thing we have to fear, is fear itself"

wembley14

Hi Eggbox and all.
Another update regarding restriction order on our previous property.
The new owners solicitors application for transfer of registration, has now been cancelled by local land registry office.






My solicitor had asked LR for clarification from their own solicitors regarding the non overreaching. But they did not get back to him before the resulting cancellation of new buyers application.
He said the LR are refusing to register new owners title and overreach the 2nd modified restriction which is for exactly the same as 1st restriction.
He says we will have to pay debt for removal of restriction out of the proceeds he kept back. The proceeds are of course my partners as well and she has nothing to do with original debt. Which incidentally is still being paid off separately by original debtor. I will seek explanation from local LR for the cancellation of registration application. My solicitor was told by LR some months back that the restrictions would be overreached and now they have changed tack regarding the info given by them. Looks like I will have to go to tribunal/court proceedings to solve this.!!

emmaT_2

I've come across this thread as Im searching the internet in a mad panic.

To cut a long story short - not been in the property since relationship broke down 6 years ago, communication very strained between us - joint owners, joint mortgage, ex recently fell behind with mortgage repayments, moved out, doesn't want anything to do with it - I've sorted out a plan to repay arrears which mortgage company has accepted - ex is willing to sign over to me on deeds but looked at land registry tonight and theres a charging order restriction in his name from 2008 that I had no idea about.

I'm really stressing out about it - the property has been left in a right state that is going to take me a long time to fix as don't have that kind of money, to sell would make a loss - I don't want to plough money into the place when I don't know what can happen with the restriction - Really need some advice/ Going to try and talk to a solicitor in the next few days If I can afford , but would appreciate any advise or experience from members - don't think Im going to sleep tonight I'm so worried:(

eggbox

emmaT


Firstly, don't worry; the Restriction isn't suddenly going to cause you problems. But can you let us know a couple of things that may help you decide what's best for your situation.


1. Approx how much equity in property?
2. How much is the Charging Order for?
3. Do you know is the Charging Order is attracting interest?