Charging Order? The myth

silverback18

Hi, this is just the subject I need help with, I am just in the process of re-mortgaging, mortgage approved and all going well, then solicitors came back with their are restrictions on the Land Registry, they said they cannot proceed as its a restriction nor a charge, I knew of a charging order, I contacted the debtor who I was paying off monthly as an agreement and thought that would be sorted, but when I contacted the solicitors who are acting for the mortgage lender to tell them it has been cleared and they will lift the restriction they said did you pay all of them, I was unaware of any other charge, they sent me the land registry paper work, there is another charge there, a loan I had as a limited Company, which I closed back in 2009, I have been told I must of signed as a personal guarantee otherwise the judge would not of permitted a charge on my personal property, but the thing with this charge is it is only an interim, not a final charge as the other charge that I cleared was marked as, secondly the charge was put on in 2010, I have never had any contact from them in the 7 years, not a word, where do i stand on this, would the debt be taken as statute barred as they have not made any attempt to contact me to arrange a payment plan or anything in 7 years, or does the interim charge / restriction although it is down as an interim charge on the Land Registry mean statute Barred does not come into play

eggbox

Silverback 18

1. Charging Orders (or the Restriction notifying the interim Order) are not subject to becoming Statute Barred; so the creditor has no need to contact you.

2. The reason your lender won't proceed with a re-mortgage, until the Restriction is cleared, is because they require the mortgage lending to be the first registered charge on your property. As the Restriction would take priority (by date) over any new lending; its extremely doubtful they would proceed with any new lending until that is removed.

If it helps, a secured loan doesn't normally worry too much about Restrictions unless the amount of equity in the property is extremely low?
And, as this thread is highlighting; you have options on whether to pay the Restrictions if you decide to sell, instead?

RMS2

eggbox wrote: »

If it helps, a secured loan doesn't normally worry too much about Restrictions unless the amount of guilty in the property is extremely low?

It's a terrible thing guilt, but I think we will settle for equity in this case.

DAKOTA45

RMS2 wrote: »

It's a terrible thing guilt, but I think we will settle for equity in this case.

I was thinking the same thing…;)

D45

eggbox

RMS2 wrote: »

It's a terrible thing guilt, but I think we will settle for equity in this case.

A Freudian slip, maybe?;)

Hootin_Heck

I would just like to add, I know some of you are eager to get hold of a solicitor to deal with "restrictions", and whilst the one I am using so far appears to be on track, I would be unable to supply their details until I can be sure that the outcome is as we would like it to be.

Also I would prefer, based on the right outcome, that I ask the solicitor if they are willing to take on more clients with the same issue, rather than them just getting inundated.

Once I am positive that 1) they are ok with it, and, 2) the restrictions are dealt with accordingly, then I will supply eggbox with the details to share where required.

If it goes wrong for me then I would prefer it didn't go wrong for others too... so I would like to confirm that the solicitors can do the job properly first.

Kri5hna

Hi,
I am hoping someone can help please.
I have read through most of the thread,but so much to understand have become a little confused,hence the reason for the help and sorry in advance if I am asking a repeated question.
Property is under mine and my husbands name I am remortarging the house not for equity but because the house is on an interest free mortgage.Solicitor has come back with two restrictions on the property,and because of this can not proceed.
I came across this forum after settling the first restriction.
I have read post #3000,meaning that I am unable,unfortunatley, to go through the notice procedure to the creditor.
The company who has put the restriction on the property does not reside at the given address on the restriction,I have checked the company regeistration number on gov.co.uk and now is trading under a different name and different address.
Where do I stand with this (if I do)?
Could I possibly fill out an RX3?
I am confused,frustrated dont know what to do and would kindly and gratefully appreciate help on this matter.
Thank you.

eggbox

Hi Kri5hna

Filling out an RX3 form is the route I would take in your position? Land Registry Rep is always impressing that its the terms of the Restriction that have to be complied with. If a creditor hasn't updated the Restriction details that is a problem for them?

Therefore (and I stand to be corrected on this by LRR), when you make the RX3 application to cancel the restrictions the Land Registry can only contact the address as notified on the restriction.

If its the wrong address and no response is received then that is, neither, the fault of you or the Land Registry and the restrictions will be removed if no objection is received (I think) after 14 days.

You will then be free to re-mortgage unencumbered and , whether, or not the creditor later gets wind of this and re-applies to register the restriction won't be a problem for you (regarding the re-mortgage) as the mortgage lender will have obtained the first charge as they require.

Kri5hna

Hi Eggbox,:)

Thank yooooou so much for the quick reply and for the great job you are doing on this forum.
Could you or LRR please help in what I would say on the RX3 as it asks for evidence or state reason why the restriction is no longer required?
I have filled a RX3 for the first restriction that I have settled and have sent the receipt and letter from the creditor to the land registry as evidence.Will the land registry remove the restriction straight away with the evidence I have sent or will they contact the creditor and wait for the 14 days?
Sorry to be a pain,I am running short on time and again very grateful for your help.

Thank you again.

Kri5hna.

eggbox

Kri5hna

LRR won't be able to advise what you should say as its seen as legal advice. But he should be able to explain what the LR procedure is if you were to make an RX3 application stating you have attempted to contact the creditor to repay but they are no longer in business or at the address concerned

If you do make an application you wouldn't put down you think they are trading under another name at another address as, unless they have notified you of this, its not your problem they haven't updated you with their details.