Charging Order? The myth

Land_Registry

Taffybiker wrote: »

If I were to leave her name on the deeds, can I still sell the property as and when I am ready without her signature?

If she stays on as a joint registered owner then no, you would both have to execute any Transfer for example.

You posted earlier that the judge has already signed the Transfer as the ex would not comply so if you are not going to register the Transfer you need to consider the implications of not now doing so.

eggbox

Land_Registry_representative wrote: »

so if you are not going to register the Transfer you need to consider the implications of not now doing so.

Can I ask what are these implications are likely to be?

Land_Registry

eggbox wrote: »

Can I ask what are these implications are likely to be?

The simple answer is I don't know as we only know if a Transfer has been completed (dated and executed) once it is submitted.

What I was referring to here was what might happen when the ex finds out she is still on the title for example or some other matter comes to court and the judge wonders why, after executing the Transfer in the ex's absence, the Transfer was not then registered and the ownership updated?

I would imagine the possibilities were discussed at some point with a legal adviser if it has got as far as a judge executing the Transfer so hopefully TaffyBiker is already aware of the possibilities and can give us an idea as to what the implications might be?

From a registration perspective the implication is that the title remains in their joint names and the form K restrictions remain on the title.

Taffybiker

Well, obviously if I kept her name on the deeds it is because I feel as if I should not have to pay her creditors any money at all. With the transfer registered, then I will be responsible for them will I not? Moreover, since the debt is not in my name the creditors won't talk to me - so I have no idea of the status.
I have no idea what the implications might be either, but I know I will not be able to get her to sign anything if/as/when the time comes that I wish to sell.

eggbox

Taffybiker

Can I just ask how much the Charging Orders are for?

Taffybiker

I don't have exact figures, but together they reach approximately £23000

eggbox

Taffybiker wrote: »

I don't have exact figures, but together they reach approximately £23000

That is an ouch!

A few of things to consider;

1. Was the prior interest in the property equal before the CO was registered. The law assumes all owners have equal ownership unless there is a registration to show this is not the case ie you put a large deposit in when the property was purchased and you, therefore, own a higher percentage? If this is the case you may be able to register your share as a higher percentage therefore reducing the Beneficial Interest your ex had in the property. This would t least reduce the amount the CO can collect from

2. If you transfer to sole ownership now, thereby, getting your ex's details off the mortgage; there is nothing to prevent you becoming a joint owner with somebody else (however that may occur) in the future This would put you back in a position that when you did sell the Restriction would become overreached again upon a sale.

3. If you have absolutely no intention of moving from the property in the coming years the creditors might listen to a reduced settlement offer substantially less than is owed rather than waiting years for something in the future. I know this is something you don't want to do but it may lessen the, financial, damage if you are desperate to get your ex's details off the property deeds?

4. Sell now to a cash buyer at a reduced rate. This again, isn't what you want to do but if you offer, say, a 5-10k discount to a cash buyer (as an incentive to understand over reaching) then you walk away less, financially, damaged than paying off the full CO amount.

5. Don't do anything and let rising house prices diminish the problem. Providing you get a Trust Deed registering the fact your ex's Beneficial Interest is limited to a set value in the property, and you aren't planning to move anytime soon; then the percentage value of the CO (on the total house value) will become less and less as inflation increases house prices.

What is going to suit you best depends on how you able you are to do any of the above suggestions?

DAKOTA45

Hi EGGBOX…

Don't do anything and let rising house prices diminish the problem. Providing you get a Trust Deed registering the fact your ex's Beneficial Interest is limited to a set value in the property, and you aren't planning to move anytime soon; then the percentage value of the CO (on the total house value) will become less and less as inflation increases house prices.

But this wouldn't work if interest is being added to the debt…In my case the debt is outstripping any rise in equity because of the additional 8% interest.

eggbox

But your situation is different as you still own the property. TaffyBiker's ex doesn't so whatever the value of the CO is at the date of transfer will be the amount the creditor can claim from the property should it be sold.

Any interest that has accrued after this date will have to be sought from the debtor themselves other wise it would be paid from TaffyBikers share which he is not responsible for after the transfer date.

eggbox

And that's assuming interest is being added which we don't know?