Charging Order? The myth

Juleen_2

I have posted this as a new topic but just found this thread....

Hello everyone

I wonder if someone can help, I am feeling rather anxious.

A RESTRICTION was placed on the land registry on my home in 2007.

The restriction reads...

(16.03.2007) RESTRICTION: No disposition of the registered estate by the proprietor of the registered estate, or by the proprietor of any future registered charge, is to be registered without a written consent signed by the proprietor for the time being of the Charge dated 15 February 2007 in favour of The Royal Bank of Scotland PLC referred to in the Charges Register.

I have just sold my house subject to contract and have placed an offer on a new one which has been accepted. My current mortgage is portable and I am borrowing extra to cover the rest. I have been through the application and credit searches will be carried out on me.

My question is will the RESTRICTION affect my credit score for the mortgage application? A few months ago I was granted a Virgin credit card with 0% balance transfer until Dec 2012 so there was no problem there and I have looked at my credit report which does show the restriction.

How do you think I stand with my mortgage application? Am I likely to be turned down? I am so worried.

Thanks in advance

Juleen

eggbox

Juleen, why was the Restriction placed and who is your present mortgage with?

Juleen_2

Thank you for replying.

The restriction was placed because I refused to pay a credit card debt from over 18 years ago. It was a card in my name but used by my ex husband at the time. When we split 18 years ago he didn't pay and I ignored it. Then in 2007 they tracked me down and because I ignored all correspondence a restriction was placed on my property. I have never acknowledged it and I think the debt is around £2,500. My mortgage is with first direct BUT the new application will be dealt with RBS as they now deal with the mortgages so I am concerned.... very concerned

eggbox

Juleen wrote: »

Thank you for replying.

The restriction was placed because I refused to pay a credit card debt from over 18 years ago. It was a card in my name but used by my ex husband at the time. When we split 18 years ago he didn't pay and I ignored it. Then in 2007 they tracked me down and because I ignored all correspondence a restriction was placed on my property. I have never acknowledged it and I think the debt is around £2,500. My mortgage is with first direct BUT the new application will be dealt with RBS as they now deal with the mortgages so I am concerned.... very concerned

A debt of that age would be Statute Barred so something is not quite right here.

So can I ask if the Credit Card debt is to RBS and did you ever receive a CCJ prior to 2007? Also, is your Mortgage now in your name only?

Also, if you have managed to obtain credit since 2007 then it would appear there is nothing for you to fear but how did you become aware of the Restriction being placed?

Juleen_2

That's what my solicitor said, it should be satute barred but now it's on the registry I HAVE to pay it before the house is sold and my solicitor has made that quite clear. He said he needs to write to them and get that the debt cleared on completion of the sale which I am not going to argue as I don't want to hold the sale up, there is a big chain! He also said that his firm would be liable if I didn't pay up.

I became aware of it in 2007 when they sent me a letter but I totally ignored it, I didn't think I would even want to sell my house so it didn't affect me. However, things have changed and I desperately want to move out of here and into a new town. The house is in my name only.

I'm happy to pay it off, I just don't want the credit scoring and searches to be affected it on my mortgage application and that is my worry at the moment. Thanks for replying

fatbelly

Juleen wrote: »

That's what my solicitor said, it should be satute barred but now it's on the registry I HAVE to pay it before the house is sold and my solicitor has made that quite clear. He said he needs to write to them and get that the debt cleared on completion of the sale which I am not going to argue as I don't want to hold the sale up, there is a big chain! He also said that his firm would be liable if I didn't pay up.

Another solicitor who doesn't understand their legal obligations...

Shame you didn't defend the court claim as you had a cast iron defence. The underlying ccj could be set aside but this will take time.

Juleen_2

I have an update.

Mortgage declined

eggbox

Juleen wrote: »

I have an update.

Mortgage declined

Sorry to hear that but you do need to find out why you were declined as in today's financial climate it's not necessarily down to your credit record!

If the debt was to RBS and it is would be paid off (and you have no other problems on your credit file) then they may be receptive to your application given a Mortgage is a secured loan. It's certainly worth a try.

If that doesn't work then I would certainly take up Fat Belly's suggestion of getting the CCJ set aside, now you have been declined, as you will then have nothing to lose. It's, unfortunately, down to you to inform a Judge that the debt is Statute Barred but if you can get the CCJ set aside then you can take steps to get your CO removed.

Juleen_2

Thanks very much

junkimunki

eggbox wrote: »

Weary