Charging Order? The myth

Mrtrotter

I've passed on the information to my mortgage broker.

Mrtrotter

Another option I guess..
If we were able to sellour property, what would be the result? Would we recoup any of the equity or is it split out amongst the other lenders on the property after paying off our mortgage?

eggbox

If the CO is registered on your deeds as an Equitable Charge (ie you both owe the debt) then yes.

If it's registered as a Restriction (ie only one of you owes the debt concerning the CO) then, as this thread explains, you have other options when you sell.

Mrtrotter

They are all restrictions on individuals.

eggbox

Restrictions don't attach to the property so (as this thread explains) they do not require payment of the CO, upon sale, to enable the sale of a property to proceed (but you will need help achieving this.)

Mrtrotter

So I spoke to my broker I mentioned that all CCJs are >6 years and he said that a mortgage application would past credit check but then fail at underwriting and that my best option would be to look at sub prime mortgage which isn't really suitable as that would be to expensive. Have I been given bad advice?

eggbox

Any mortgage, sub prime included, will require their charge on the deeds to be the first registered; so you would fail on that requirement as your Restrictions would automatically gain priority over any new mortgage, subsequently, registered - the advice given doesn't seem to understand this?


Your best bet, in the first instance, would be to approach Halifax as they may be able to increase/adjust your existing mortgage, thereby, avoiding any new mortgage having to be registered on the deeds?

Melanie_Fleming

No its not just Northern Rock

Any creditor that uses the charging order route to change an unsecured debt into a secured debt is not fully securing their debt if the land is owned jointly.

As long as the conveyencor provides notice to the creditor and gives an undertaking to the purchasers solicitor that the creditor has been notified and that the restriction will become void on purchase, they are fulfilling the law and as stated above, it is then upto the creditor to act before completion takes place.

To give a false undertaking to another solicitor is a serious offence and therefore, all solicitors will duly complete the transaction based on any undertaking given by a fellow solicitor.

A creditor rarely has time to act before the signatures are made.

Remember I am not a solicitor and you should confirm this with one before starting the process, but it is all there on the Land Registry website

Hope this helps
Thanks

Melanie_Fleming

So say for instance at a charging order hearing you happen to mention that the mortgage is jointly owned and you know they can only get a restriction on the property, that could move them to go for a forced sale or even bankruptcy for the home owner (equity in property) so is it best to keep shtum about what you know and let the legals deal with it after .



also if a charging order is made it is only applied to that persons half of the house who owns the debt if not a joint credit card loan debt...............
thanks

traceydc49

Hi everyone, I'm posting on this thread hoping I've got the right 1. I am hoping to get a f&f agreement with a company called Blake Lapthorn, they are a large solicitors company. My debt was with the HSBC originally for my student bank account. It stood at 4000. I missed a payment, through my DMC, I didn't have enough funds in my debt "pot" to send that months payment, so they placed a court order on my house. Trouble is, my income has gone down & I am only able to pay token payments of a £1 to all my creditors, the debt is in my name only, I have secondary MS & my home has been adapted, can they force sale because I can't pay what I was doing? I am terrified they can force us to sell, really don't know what to do any advice good or bad, just need a direction in which to go thanks