Charging Order? The myth

Manchester_Lisa

Hi can you advise on the following please:
HSBC have a charging order on my property, can they sell that charging order to anyone and then the debt would be owned by that person/company

Thank you

eggbox

Manchester Lisa

Yes they are able sell the debt on to a third party.

However, for the new company to, legally, have the benefit of the Charging Order they must get the CCJ originally obtained to be transferred over to them by a Court.

You should also be notified of this by the Court when it happens.

AJinDebt

Hi guys

I am in the process of trying to sell our house and have recently come across this fantastic board. There is a restriction in place on our deeds for a CC debt only in my wife's name. I inquired with our solicitors about everything I've read here but pulled a big wall of denial from them. I was told in no uncertain terms the debt would have to be paid and no solicitors would consider not advising any purchasers to not buy our property... ?? The debt is about £7k. We would not want to risk losing a potential purchaser..
Could I be supplied with the contact details of the firm Knowledgeable in this area?

Many thanks in advance x

eggbox

Send me a pm and I will give you details of Solicitor who will act

Distracted

The purchaser solicitor is now throwing his toys out over the use of the word 'may' from the Land Registry

'Such a restriction may be automatically cancelled if it is overreached by a transfer for money from two or more proprietors to a third party.

If overreaching appears to have taken place, your certificate that written notice of the disposition has been given to XXXXXX will allow the registration of the Transfer.

However, in the absence of such a certificate, the restriction will remain on the register until an application is made for its withdrawal or cancellation'


Its the last thing I need at the moment with everything up in the air. My Solicitor and myself are now awaiting a response from the LR to confirm the intention of the use of the word may.

eggbox

The use of the word "may" instead of "will" is to safeguard against other factors which, unknown to the LR, could affect the removal of the Restriction legally. Even if its 100% certain there is no other unknown factor they will still use the word "may" instead of "will" to cover themselves against being seen to give incorrect information in the event of an unknown factor (even if its 100% certain there is no other factor!)

As an example of this; I've just had to request an assessment from the Information Commissioner's Office regarding a company not supplying any information in response to a subject access request within the 40 day limit under the Data Protection Act.

Even though its clear that the company concerned hasn't sent any data, the ICO still won't make an assessment to say the company concerned "hasn't" complied with the Data Protection Act - they will make an assessment that the company is "unlikely" to have complied with the Data Protection Act (conversely, even if its 100% provable the company had sent the data required; the ICO will still only assess that its likely the company has complied with the DPA.)

The terminology used is to cover themselves against giving incorrect advice should any unknown element affect the situation? However, an "unlikely" assessment is enough to be able to take the company concerned to Court for non compliance.

Both Solicitors should be well versed in the Law to understand this principle and see that the LR saying "may" does mean "will" under normal circumstances.

Land_Registry

Thanks eggbox - as the OP is awaiting a response from ourselves I preferred to wait until you had responded before adding anything.

The use of 'may' is commonplace when dealing with responses to enquiries and guidance in the same way as should, could, in my experience ......... are used simply because until an actual application is submitted, the details then checked/confirmed and considered we simply cannot say 'will' .

Applications are considered on merit and at the time that they are submitted. There can be no 100% certainty beforehand so it will always be may and not will.

Distracted

Thank you both. This was more a cry of frustration thanot a search for an answer but your responses echo my beliefs.

Thankfully we have had confirmation from the LR and, eventually my purchaser solicitor has accepted it. We have now exchanged contracts and are awaiting the completion tomorrow morning.

Thank you all again, it's been a frustrating journey but the steady guidance and advice here has been invaluable.

eggbox

Distracted

We all understand the frustration so don't worry about that.

Please let us all know that everything goes ok for you, okay?

weimimamma

Hi All

Wonder if you could clarify something.

Husband attended court in July and we then received paperwork advising that a interim charging order was granted with the hearing for the FCO to be undertaken on or before 4th November. I wrote to the court outlining my case as paying the mortgage for some time it was my long time family home why should I be penalised for hubby's debt etc etc .... Also stating that following the court case we had completed the necessary N245 form to vary the order as at no point was my husband given the chance to pay by instalments and was ordered to pay the full amount which we didn't have and we had heard no response from the court. Today we get a variation order land on the mat saying we can now pay by instalments

Does this mean that the ICO or FCO is still granted? and does it mean that a CCJ will show on hubby records?

Weimimamma