Charging Order? The myth

Iwishlifewaseasier

Hi all
I have been a member for many years but recently lost my login details, and the email address used is no longer in existence, so starting as a newbie.
My brother in law has recently accepted an offer on his house' the mortgage term ended about 6 months ago but has been extended for another further 6 months to allow time for the sale process.
The problem is, there is a charging order attached to the property which if paid will not leave him enough to buy his mothers council flat outright which he will need to do as he is nearing retirement.
The property is in his sole name as is the debt, is there any way around this or is it a point blank no as I have been hearing today from various solicitors I have spoken to.
One very blunt one told me that the charging order is on the property not the person so it will transfer to the new owner, can't see that myself but he's the expert!
Thoughts anyone

eggbox

stuart30 wrote: »

Thanks for that and apoligises if im being incredibly dim...but neither of us have a CCJ against us for this matter.

You will have had to have had a CCJ registered against both of you as a Charging Order is security for the Judgement debt amount. But CCJ's only stay on your credit file for six years so, as this was prior to 2010, this is why they are no longer showing.

stuart30 wrote: »

(15.03.2010) Equitable charge created by an interim charging order of
the Peterborough County Court dated 3 March 2010 in favour of Link
Financial Limited. Is that a full fat charging order or .....?
.

Its an interim CO but it has the same full fat effect

stuart30 wrote: »

Im thinking as part of the remortgage borrow extra and make them an offer for 65% of whats owed...or make them wait another 20yrs when mortgage expires.

Unfortunately, unless you can agree to settle the CO amount then a remortgage will be difficult. This is because any mortgage lender will always want to have the first charge on the deeds. So you will need to negotiate a definite settlement figure before you apply for a remortgage.

eggbox

Iwishlifewaseasier wrote: »

Hi all
I have been a member for many years but recently lost my login details, and the email address used is no longer in existence, so starting as a newbie.
My brother in law has recently accepted an offer on his house' the mortgage term ended about 6 months ago but has been extended for another further 6 months to allow time for the sale process.
The problem is, there is a charging order attached to the property which if paid will not leave him enough to buy his mothers council flat outright which he will need to do as he is nearing retirement.
The property is in his sole name as is the debt, is there any way around this or is it a point blank no as I have been hearing today from various solicitors I have spoken to.
One very blunt one told me that the charging order is on the property not the person so it will transfer to the new owner, can't see that myself but he's the expert!
Thoughts anyone

Because its a sole debt the CO is registered against the property as an equitable charge. This does mean the property can't be sold without dealing with the Charging Order.

What your Solicitor was trying to explain was that if the house were able to be sold and the CO was not dealt with, it would still remain on the deeds of the property and the new owner would bear the responsibility for it - that's why the house wouldn't sell without the CO being removed or settled on completion.

What you can try is to offer to settle the CO for a lower amount explaining that, without that lower amount, the house won't be sold and the CO will remain unpaid for many years to come.

stuart30

eggbox wrote: »

You will have had to have had a CCJ registered against both of you as a Charging Order is security for the Judgement debt amount. But CCJ's only stay on your credit file for six years so, as this was prior to 2010, this is why they are no longer showing.

Its an interim CO but it has the same full fat effect


Unfortunately, unless you can agree to settle the CO amount then a remortgage will be difficult. This is because any mortgage lender will always want to have the first charge on the deeds. So you will need to negotiate a definite settlement figure before you apply for a remortgage.

!!!!!! looking to remortgage in the next couple of months...best get a settlement figure.:(

The CO was granted 15.03.10 so im guessing would the CCJ been prior to that as i believe it went to court around December 2009 and was dealt with very quickly,as im 99.9% sure when ive checked credit files over the years ive only ever had the water bill ccj"s and the wife certainly never had a ccj on her report.

Not doubting what youve kindly explained...just cant work out why ccj wouldnt have shown up.

eggbox

stuart30

If you are certain the wife was not jointly responsible for debt the CO registered as an equitable charge is for, then I would check it out with the Court concerned as mistakes can (and do) happen in the registration process.

stuart30

eggbox wrote: »

stuart30

If you are certain the wife was not jointly responsible for debt the CO registered as an equitable charge is for, then I would check it out with the Court concerned as mistakes can (and do) happen in the registration process.

Thank you eggbox..will be onto the court in morning and ask them.

Is there anyway to check online regards historic CCJ..i know 100% its not been on credit file for either of us for this year as ive been doing a credit file clean up over the last 18 months and checking all three CFA regularly.

eggbox

stuart30 wrote: »

Thank you eggbox..will be onto the court in morning and ask them.

Is there anyway to check online regards historic CCJ..i know 100% its not been on credit file for either of us for this year as ive been doing a credit file clean up over the last 18 months and checking all three CFA regularly.

Experian and Equifax are usually the most up to date and accurate (so I'm led to believe) and I think they both offer a free trial (but remember to cancel before the trial period ends!) Both will show a record of CCJ's for the last 6 years.

But you can request details of the application from the Court that issued the CO as they will have a record of who the CO was made against.

stuart30

eggbox wrote: »

Experian and Equifax are usually the most up to date and accurate (so I'm led to believe) and I think they both offer a free trial (but remember to cancel before the trial period ends!) Both will show a record of CCJ's for the last 6 years.

But you can request details of the application from the Court that issued the CO as they will have a record of who the CO was made against.

Both Agencies checked and no ccj"s showing on wifes report and only the water bills showing on mine.

The 6 years would have been up start of this year...be intresting to see what court says.

Only concern is...if for what ever reason the ccj wasnt reported in 2009/2010 im assuming it couldnt be reported now as over 6yrs.

eggbox

Do you know what debt the Charging Order was for and, by your memory, whether your wife was a joint signatory to the loan or service?

Iwishlifewaseasier

Sorry to have butted in but thank you for your response. I will contact Lloyd's bank myself rather than pay the solicitor to do if and see if they're willing to reduce it to clear it.

Would I be right in thinking its a different story for restriction registered on a jointly owned property, there is a restriction K on my home I believed had been dissolved in my ex husbands bankruptcy in 2008, it was only years later when he left me that I discovered it hadn't been. The unfortunate thing is that I bought his beneficial interest from the OR for a token payment in 2009, so wondering how this situation may be dealt with when we go to divorce and settling the finances.
Really sorry again for hijacking, I promise I will start a new thread for my own questions in future.