Charging Order? The myth

eggbox

Fudgy

As LRR says, using an RX form will require consent of the Retrictioner. But complying with the Restriction wording when selling your property achieves the same result.

Fudgy

hi eggbox - I have emailed you a direct email

eggbox

Hi Fudgy

not sure what you mean by direct email but no PM has come through. If you click my profile it should let you send me PM

Land_Registry

Looks like you emailed Land Registry and not eggbox

eggbox

Land_Registry_representative wrote: »

The form for a legal charge is form CH1 and you would need to submit it under cover of a form AP1 along with the required ID1 forms as evidence of identity etc

Hi LRR, you kindly provided the above information a while back for someone who wanted to know about how to put a voluntary charge on his property in regard to a loan from his son.


Someone else has contacted me regarding a similar situation in which they want to do the same in respect of the mortgage payments their children have been helping them with over a ten year period. (They are struggling to repay the children who aren't on the mortgage)


Can I ask if the same forms will be required and what the fee is likely to be? Also, they have asked if proof of the mortgage payments paid by the children on their behalf have to be verified to the Land Registry?


Any help on this greatly received!

Land_Registry

eggbox - same forms and ID requirements in play
We would not need details of any mortgage payments made but if that mortgage is still in play I am guessing they would need the consent of the mortgage lender

The fee is paid under Scale 2 of the fee order on the amount of the charge, namely the loan being secured. The form CH1 and AP1 would both refer to enable us to assess the correct fee as having been paid

Any application if not lodged by a conveyancer should go to our Wales Office

eggbox

Thanks LRR that's very helpful!

Can I just ask why consent of the mortgage company might be required given a charging order can be registered without their consent?

Land_Registry

A registered charge comes under the definition of a disposition so if they have a consent restriction on the title then their consent will be needed in order to register it as a legal and registered charge.

If they need to consent but do not then it may have to be registered in some other way for example as an equitable charge, a notice or a restriction as explained in our online guidance.

eggbox

Thanks again LRR

Are there any obvious reasons a mortgage company wouldn't agree to this given they are the priority charge holder anyway?

Land_Registry

Not something we would be privy to although much will often depend on how much is being secured and who the lender is I suspect, primarily as the first chargee, mortgage lender, is going to be looking at what 'additional risk' a second legal charge places on their own security

This MSE thread touches on the subject for you although I note nobody posted again after the last post