Charging Order? The myth

eggbox

Thanks LRR an interesting read ( but I did smile at your comment that nobody posted after the last post )


But it does raise a few issues and one that I've seen before crops up again which you may be able to confirm/deny? This is, if a property is repossesed is it correct that all charges, except the first, become overreached and are removed in favour of the first chargee?


It would appear this is so and whatever proceeds are left after the first chargee has been paid goes to the previous owner not the previous charge holders? Is this correct?

Land_Registry

eggbox - sometimes it is good to smile

Suspect you may not have seen our online guidance around Transfers under power of sale which explains how other interests can be treated. Section 3 deals with the most common scenario.

As far as how the proceeds are then divided are concerned we would not be aware but experience from enquiries around this point would suggest that any remaining proceeds would go to the owner and not their other creditors as you suggest - one reason I suspect is because the first chargee are not likely to want to administer that part of the process and their legal interest started and ended with their legal charge. Their minds are focused on recovering their own debt it seems.

But as I say it is the registration and cancellation of registered interests we are concerned with and not how the proceeds of sale are divided

eggbox

Thanks for the update LRR!

Welshgem

Hi all,

I cannot get my head round the looming charging order.

My mother bought a flat 27 years ago, she has no mortgage. Ten years ago she got the first time into debt and I bailed her out.
Four years ago the same thing and she nearly sold the flat to an equity company. I bailed her out again, this time with £35000 but got a share in her property.
Now six weeks ago, a court date arrived in my post with a charging order is being made against the flat for a credit card amount of £10000 by her bank which she accumulated!

Now as I took out £35000 back then and still paying it back by a payment of £180 on top of my own mortgage, I cannot afford to pay the £10000 plus now for my mother and therefore now wondering what can happen to her flat and what I need to do to safe guard my money I credited to her - my share of the flat?

I am near the end of my tether as I have been to the CAB already but they were not very helpful. I do not have the money to pay for a solicitor either as I am just getting by every month as it is.

Please has anybody had a similar thing happen to them and if so, what did you do?

eggbox

Welshgem


If you are a joint owner of the property then the Charging Order is made against your Mother's half only. Nothing will happen to your Mom's home as the debt is "supposed" to be settled when the property is sold. But, as this thread is about, Charging Orders made against a "joint owner" don't have the same security as a CO made on solely owned property.


I take it you are registered on the deeds given the £35,00 bail out?

Welshgem

eggbox wrote: »

Welshgem


If you are a joint owner of the property then the Charging Order is made against your Mother's half only. Nothing will happen to your Mom's home as the debt is "supposed" to be settled when the property is sold. But, as this thread is about, Charging Orders made against a "joint owner" don't have the same security as a CO made on solely owned property.


I take it you are registered on the deeds given the £35,00 bail out?

Yes I am registered on the deeds for the £35000 but she is the sole owner of the flat and I have an interest in it only.

How can I safeguard my money which I input in the flat though?

eggbox

If your "interest" is registered on the deeds it will be protected as it predates the Charging Order. Any proceeds due for the creditor will be paid after you are upon the sale of the property.

gchads

Hi Guys,
we have a jointly owned property with my wife and i. An interim charging order was put on for an unsecured debt via CCJ. Were now looking to remortgage to raise some funds. Is there anyway we can do this without notifying the or triggering payback to the restrictioner. Have read this thread but it seems so confusing.

Many Thanks

gchads

eggbox

gchads

A Restriction won't prevent you being able to remortgage, but any new lending will be at the discretion of the mortgage lender. Would they be happy to lend you further money if you have a CCJ for another debt might be the obstacle?

But if they are happy too then no problem.

gchads

eggbox wrote: »

gchads

A Restriction won't prevent you being able to remortgage, but any new lending will be at the discretion of the mortgage lender. Would they be happy to lend you further money if you have a CCJ for another debt might be the obstacle?

But if they are happy too then no problem.

Hi Eggbox,
thanks for reply. CCJ has fallen off CRA as it has been 6 years. So our CRA is looking pretty good. Just this restriction is posing potential problems cause it would take 10k from our remortgage. i have posted the restriction below from our land registry entry See what you think :



XX.XX.200X) RESTRICTION: No disposition of the registered estate
is to be registered without a certificate signed by the applicant
for registration or his conveyancer that written notice of the
disposition was given to XXX XXX XXX at care of XXXXXX, XXXXXX,
being the person
with the benefit of an interim charging order on the beneficial
interest of XXX XXX XXX made by the XXXX XXX
Court on XX XX 200X Court Reference XXXXXX.


Cheers


gchads