Charging Order? The myth

DAKOTA45

Perhaps we should all get together and swap…. D45

http://dailym.ai/13jDrIx via @ThisIsMoney

DAKOTA45

Thanks for the link LRR… but nothing on there as to Modified Restrictions and whether creditors should be allowed to modify if there is no real need… As you probably remember, my creditor having gained a FCO then went on the make a modification that I must give a 14 day notice pending disposal. The reasons being that a "Form K restriction does not provide security of the debt". If it doesn't provide security, then what is the point of it? Bizarre!

D45

Land_Registry

D45 - the online guidance we provide can only cover the registration aspects/process and the most common scenarios.

The CO process itself and the modification as well as the legal argument/reasons involved in your case would not be something we would be able to cover as a result. Pretty sure I posted that your case appeared to be 'unusual' at the time you posted originally

NZS1985

Good afternoon, 1st time poster here.

This is my situation.... I have a 'Unilateral Notice in respect of Final Charging Order' on my house.

The notice was put on my house by Barclays Bank back in '09 and they haven't gone any further, i.e. trying to force me to sell.

I'm just trying to see what I can and can't do in terms of either re-mortgaging my house or selling. Will this affect the re-mortgage or sale process?

Many thanks for any help.

NZS.

eggbox

The CO will affect your ability to remortgage (see post #3000 for an explanation as to why that us.) How it affect your ability to sell your property is dependant on whether;

i) You own the property jointly or solely
ii) If you own jointly are you the only debtor
iii) The wording on your property deeds notifying the CO

If you can post up that info it will help determine what position you are in?

NZS1985

Hi Eggbox, thanks for the reply!

i & ii) I solely own the property
iii) On section C of the title, the charges register, it says the following...

6 (17.03.2009) UNILATERAL NOTICE in respect of Final Charging Order in
the ******** County Court.
NOTE: Copy filed.
7 (17.03.2009) BENEFICIARY: Barclays Bank Plc of ********, **********
**********

Is this enough info??

NZS

eggbox

NZS1985 wrote: »

i & ii) I solely own the property
iii) On section C of the title, the charges register, it says the following...
6 (17.03.2009) UNILATERAL NOTICE in respect of Final Charging Order in
the ******** County Court.
NOTE: Copy filed.
7 (17.03.2009) BENEFICIARY: Barclays Bank Plc of ********, **********
********** NZS

Usually, if you are a "sole" owner then Charging Orders are registered as an "equitable" charge on the property deeds (similar to how a mortgage is) which means they have to be dealt with before any transfer can proceed. Is there any other information on the deeds relating to being registered as an equitable charge?

I will have to bow to LRR to confirm this but, if the CO has only been registered as a unilateral notice, then this only has power of notification (to the company with the benefit of the CO) and won't prevent a sale?

Wookiee501

eggbox wrote: »

Usually, if you are a "sole" owner then Charging Orders are registered as an "equitable" charge on the property deeds (similar to how a mortgage is) which means they have to be dealt with before any transfer can proceed. Is there any other information on the deeds relating to being registered as an equitable charge?

I will have to bow to LRR to confirm this but, if the CO has only been registered as a unilateral notice, then this only has power of notification (to the company with the benefit of the CO) and won't prevent a sale?

Technically, a unilateral notice doesn't even carry the power of notification. Overreaching doesn't work the same way either - they stay on the register until they are specifically cancelled or withdrawn, although a new owner probably wouldn't have too much difficulty with an application for cancellation if they could prove that the interest protected by the notice didn't apply to them. As with the equitable charge, how the situation is dealt with by a conveyancer would depend on the conveyancer's appetite for applying the LR Rules correctly, instead of insisting that the debt be satisfied.

eggbox

Wookiee501 wrote: »

Technically, a unilateral notice doesn't even carry the power of notification.

For a unilateral notice to be cancelled the registrant has to justify the validity of the notice registered. So notification has to be made for this reason.

Wookiee501 wrote: »

Overreaching doesn't work the same way either - they stay on the register until they are specifically cancelled or withdrawn,

If the interest the notice is protecting is overreached, then the notice protecting that interest will also be cancelled.

As the poster is a sole owner and the creditor could have registered a FCO as an equitable charge on the deeds (which wouldn't be overreached on sale); LRR may have an opinion as to why a unilateral notice may have been registered in this instance?

NZS1985

Thanks for the info guys,

Just looking through the title deeds again, there is no other mention of the 'UNILATERAL NOTICE in respect of Final Charging Order'

So I'm guessing if I go to sell, the solicitors of any prospective buyer would want me to settle the debt rather than leave the charge on the deeds for the new buyers to cancel themselves. To be honest if I was buying a house I'd be very wary of doing this, so I'm not surprised others would act in the same way.

There is equity in the property to pay the amount owing, but if I legally don't have to pay this it's something I want to investigate.

Just a quick question, what is meant by the term 'Overreaching'?

Thanks,

Adrian