Charging Order? The myth

eggbox

Hi Sparkly!

Good that you seem to have a clued up Solicitor (but as you say the proofs in the pudding!)

I think your buyers Solicitor is yet more proof, however, of the level of incompetency amongst conveyancing "professionals" as it clearly states on terms of the Restriction who has to contact the Land Registry!

Yes it will give Restons a head-start but all they will do is send a letter requesting settlement to your Solicitor as they would when the debt is being agreed to be settled by the seller. They won't be expecting non payment so it shouldn't alert them unnecessarily to do anything else.

But what happens then is down to you and your Solicitor and the understanding there isn't any legal requirement to hand over the money at the point of sale.

Sparklyfairy

Yes, Eggy, you have said pretty much exactly what my solicitor has said.
He's going to ring our buyer's solicitor on Monday to actually "talk" it through as up to this point it's just been via emails, faxes & snail mail.
So it transpires that our buyer's solicitors think the way to deal with a Restriction is the exact same way as they'd deal with a charging order! They have written to Re&tons & have already given notice, ( we haven't even exchanged contracts yet!) but said that they doubt Re&tons will comply with a response as they aren't our solicitors & cannot agree to any payments through the sale of our house to be made. Utter incompetence or what?! My solicitor has reassured us that he will do his best to explain what needs to be done when he speaks to our buyers solicitor but if they don't comply, we're pulling out of the sale.

Interesting stat my solicitor gave was that so far this year he's had 5 sales with Restrictions. 3 out of the 5 had the buyers solicitor question the procedure when dealing with the restriction ( like mine) the other 2 completed without a whiff of a problem. Since its been 13 years since this law change & it's fair to say that the majority of solicitors haven't got a clue, you'd think that the Land Registry would step in more to clarify this issue with non compliant solicitors. Imagine all the sales that have broken down due to this? All that lost stamp duty they could have had.....!

Sparklyfairy

Oh yea, one more thing. When I asked about what Re&tons could do now they are notified to our upcoming sale, my solicitor said " pretty much nothing" and my solicitor said he will not agree to a notice saying he will pay them through the proceeds of our sale. So yes, pretty much exactly as you have said, Egg! They can chase at a later date, so be it!!

weimimamma

Hi Egg and Sparkly Fairy (again thanks Sparkly for your PM info - much appreciated! )

Just have a question The ICO's n our jointly owned property (in hubby names only) are all credit cards we have around 4 from 2008 and a couple fro 2011 but only 2 of which we pay a small payment on the others we have nothing from for years infant a couple are so old they do not show any longer on hubby credit check and we had a water leak some years ago and I have no paperwork confirming any of the details. What would be best way to find out what is owed, F & F settlement letter? just sell the house and let the sols do their thing? Will there be interest accrued from all those years ago?

Any advice appreciated I really need to get a final figure in my head incase this goes to that place where some/all of hubby equity has to be used to pay off some or all of these loans.

TIA

eggbox

weimimamma

Its unlikley interest will have been added to the original CCJ and if you are still only at the ICO stage, then there won't be any interest added as there is no Final Order granting any statutory interest requested.

So you need to see if the CO has been made Final (Land Registry deeds are not always accurate as to whether or not this has happened)and what the terms applied for and granted were?

Interest should not be added to any CCA regulated debt or if the debt was under£5000. But some creditors apply (and get) interested added as some District Judges aren't aware of this.

(If I remember right, I think Sparkly was unlucky enough to have suffered this on her CO?)

weimimamma

Thanks Eggbox How do I find out if the order was made final? I have the latest LR search which I applied for two weeks ago and all state restriction and interim charging order

eggbox

You both should have been notified of any Final Charging Order hearing but there will also be a record of any Order made at the Court concerned.

Many creditors, however, only go as far as the ICO stage where sole debt/ joint property is concerned as it (more or less) does the same job as a Final Order but saves the cost of pursuing the Final Order.

So if you can't remember having been made aware of any hearing, there is a good chance there hasn't been one?

weimimamma

Will continue to keep you posted as we move through any sale, still got some sorting to do and then on the market at beginning of October watch this space and thank you so much for the advice so far......

Sparklyfairy

That's correct, Egg. No matter how much I protested & fought my corner, the judge didn't listen & I have an 8 % interest charge added to my debt. Ridiculous!!

DAKOTA45

Sparklyfairy wrote: »

That's correct, Egg. No matter how much I protested & fought my corner, the judge didn't listen & I have an 8 % interest charge added to my debt. Ridiculous!!

I've got interest on mine, even though I don't remember it being discussed… I'm sure it wasn't mentioned on any documents.

Debt doesn't come under CCA, though, so can be applied.

Not worth arguing with the court… they never listen, especially if the other side is represented…:(


D45