Charging Order? The myth

eggbox

Distracted

Thanks again for updating. Fingers crossed it will all go smoothly!

DAKOTA45

Burb147 wrote: »

Sorry I'm confused the restriction is only for an interim charging order not a final charging order. And to meet the requirements of this as stated in the thread they only need to be informed of a sale. Which I thought would class as me buying the house in this case? The tenants in common was done after this order and was nothing to do with the loan company or a court. As far as I'm aware they know nothing about it?

I'm still confused as to whether or not you can sell with an ICO… I was told you can't sell until the ICO is made final…


Anyone?

D45

weimimamma

Morning all

Just come back from a weeks holiday to find another request for an ICO on my mat :-( (welcome back to reality) this is for a court case my husband attended back in July with a relative, the debt is in my husband and mother in laws name jointly.

On the documents enclosed from the court it states the following

that unless the judgement debtor or any other person files and serves their objection to the continuation of the charge in writing within 28 days of the date of the service of the order (17th september at the top) the application will be considered by a district judge no later than 4th november he will consider without a hearing whether the charge created by this order should be made final (with or without modification) or should be discharged.

We own the property jointly
This is a joint debt between husband and mother in law however the full amount is on both sets of paperwork
Can I do anything to stop these being made final (we have offered numerous times to pay instalments even completed N245 form which was never acknowledged)
we are currently marketing our house could this affect this
We have other ICO's on the property already
In-laws are in their 70's

Any advice appreciated as ever.

Thanks

DAKOTA45

Hmmm… it would seem that I have two ICOs relating to this matter…

One dated 9th May the other 19th June… both applications made on 30th April…with the Statement of Truth unsigned. (Not that the court cares about such things, despite CPR stating that such documents must be signed).


Now I'm all confused again… D45

eggbox

weimimamma

Charging Orders are notoriously difficult to stop but you should always attend Court to try. Especially as you have made attempts to repay the debt and you have been ignored?

But the ICO won't add any further difficulty (to a sale) if you already have ICO's registered and the debt is only against one of the owners.

weimimamma

It says that the judge will consider without a hearing so should I respond with anything in writing to say this is my long term family home and I have made the mortgage payments or anything of that nature.?? Worried this wonderful person will take this all the way and apply for an OFS I am sure she will

weimimamma

Also if she gets a full CO what does this mean as opposed to the restrictions we already have whats the main difference

eggbox

weimimamma

Changes regarding how Charging Orders are granted came into force in April of this year. In simple terms, they are now sought through the County Court Money Claims System.

If there is no objection then an officer of the Court can make the Order Final. If there is an objection, however, it reverts back to the previous way of being heard in front of a Judge.

A Full Charging Order is the confirmation a Charging Order has been granted as opposed to the Interim Charging Order which is a temporary measure that allows the creditor the same rights as a full Charging Order whilst the Full Order application is heard.

However, where the property is jointly owned but only one owner owes the debt; both an ICO or FCO can only be notified by a Restriction on the property deeds. Due to this, many DCA's don't proceed to a FCO as the ICO has the same effect and it saves them the cost of applying for the FCO.

As this thread is highlighting, most Restrictions registered are in the Standard Form K wording and only require notification to the Land Registry by the buyer (that a sale is happening) to enable the seller to proceed with a sale.

An OFS is also as difficult to obtain as a CO is to prevent, so don't worry on that score. Judges have total discretion on whether to grant an OFS and there is extreme reluctance to do so on family residencies.

There is also caselaw that makes an OFS on family homes very difficult with the most notable being there has to be enough equity left after a sale for the debtor to purchase another home. From what you have said that wouldn't be the case so don't worry.

weimimamma

Thanks Eggbox as ever help many of us sleep a little easier at night, there is others in front of the person dating back to 2008 and 2011 on our property so she is at the back of a long old queue.

Hopefully we will continue and find a buyer for the property and see how we go.

I hope we hear from Sparkly Fairy soon as to if her property went through yesterday or not....... hopefully all went well :-)

Would it be worth us sending correspondence requesting no additional interest be added to the debt as she has already had a lot of additional money added for interest todate.

eggbox

weimimamma

No problem and, yes, let's hope Sparkly has some good news soon!