Charging Order? The myth

DAKOTA45

Hi Asparagus.. I have replied on your thread to ask how much the Charging Order is for, as presumably, you would need to deduct that amount from your share of any equity in the property…
Regards, Dakota.

andip1967

Hi,

Hope somebody can shed some light on my predicament please?

I am in the process of trying to sell my late Mother's property, she passed away in 1999 and because I was in such a state I never applied for probate etc.

I now have probate, allowing me to process the sale, however I have hit a rather large stumbling block!

My solicitor has informed me that their is a charge on the house from a company that is now dissolved (2009), they didn't have any accountants involved, so we have no way of contacting them. I think this charge is from an unsecured loan my Mother may of taken out! I cannot prove anything cause I don't have any paperwork.

I do have a buyer for the property, bit they will not purchase with this charge, obviously!

I seem to be going down a blind ally, I have read about the RX3 form for bona vacantia but I don't have enough evidence.

eggbox

Hopefully Land Registry Rep may be able to give some advice of what the procedure is in these circumstances as it seems the house was solely owned?

Land_Registry

What is the 'charge' you refer to as in can you post the wording with the names removed perhaps?

You mention an RX3 and bona vacantia re the dissolved company so I assume it is a restriction that is protecting that interest but can you clarify please?

andip1967

The charge refers to a class C1 subclass 1 registered in 1986 against the properties address, hope this helps.

Land_Registry

Thanks andip1967 - a Class C (1) charge relates to second and subsequent legal mortgages i.e. those where the lender does not hold the title deeds.

These are registered at Land Charges against the named individual and not against an address where the property is unregistered. And this seems to tie in with the details in your original post, namely unsecured loan and your late Mother presumably having owned the property for some time and therefore it is unregistered.

As such an RX3 is not the right form as that deals with registered land.

Our Practice Guide 63 Section 5 deals with the removal of such land charge entries and links you to the form(s) needed.

dcouponzzzz

Sorry but I'm not sure if my case is even remotely related, but would like some advice.

I joint own my home with my sister, we would love to be able to put it on the market now and use our equity for our own deposits on other houses. Our mortgage was opened via the Post Office with Bank of Ireland on a 5 year fixed rate, 4.9% and this was in April 2012. When requesting our settlement figure, they're charging a 5% buyout fee all the way til December 2016, at which point there will be no financial penalty for selling or remortgaging.

I wasn't financially savvy or even interested when I signed the contract, but it does state a 5% buyout fee for the fixed rate term on reading back.

Is there anything I can do to void this? My guess is no but can't hurt to ask.

andip1967

Thanks for the reply.

I cannot find the deeds for the property either. Now I have probate am I able to apply for them in my name. Will the charge still be on until I have filled the necessary paperwork.

Land_Registry

andip1967 wrote: »

Thanks for the reply.

I cannot find the deeds for the property either. Now I have probate am I able to apply for them in my name. Will the charge still be on until I have filled the necessary paperwork.

If you have probate then the transfer to you as the beneficiary will trigger the need to register for the first time.
You will need to clear the Class C charge before registering but I would strongly recommend getting some legal advice to assist with this.

Our online guidance and Practice Guide 1 explains how to register for the first time but the complexities you are facing may mean you need wider advice and we cannot really provide that I'm afraid - the key seems to be understanding how the dissolved company's asset as recognised by the class C charge is treated legally.

Land_Registry

dcouponzzzz wrote: »

Sorry but I'm not sure if my case is even remotely related, but would like some advice.

I wasn't financially savvy or even interested when I signed the contract, but it does state a 5% buyout fee for the fixed rate term on reading back.

Is there anything I can do to void this? My guess is no but can't hurt to ask.

dcouponzzzz - this one might be better posted on the Mortgages/Endowments forum rather than here as it does not seem to relate to a charging order issue
You may get more help there?