Charging Order? The myth

Land_Registry

bonfire1966 it reads as if the advice given is correct although that's really something others will need to confirm for you

Anyone can contact us to challenge a decision or query why a restriction has been removed. But that dies not mean that decision is reversed. I'm sure others will have thoughts around how a creditor might react in such circumstances.

If you applied to cancel the restriction then we would consider it on merit so any removal would not be on a whim and we would consider the creditor' interest as well as your own and that of your ex/her estate.

I'm sure whoever is acting fir you now can advise you on the law re such debts and how they are dealt with when a debtor sadly dies

eggbox

Sparkles69 wrote: »

Hi Eggbox,
If I sell the house I now live in which the restriction is on and the restriction isn't paid, could, if I was to purchase a house in the future the creditor apply to the court for new charge on the new property I would own?
Thanks, S69.

Yes. Any asset you have a financial interest in they can apply to attach a charging order to for their debt.

eggbox

Bonfire 1966

Lord only knows why you contacted the creditor but, anyway?

I wouldn't take too much notice of the Solicitor as he was probably trying to intimidate you into paying? You've also been given the correct advice from the debt charity concerned.

To prevent a sale the creditor would have to apply for a freezing order which, if you search this thread, has been explained that it is extremely costly and extremely risky to do for them. This is because they have to guarantee to pay costs should the Court find the freezing order had no merit (which sounds the case here?)

Also, if the Restriction has been removed by the Land Registry and the creditor thinks that is unfair; then the creditor should be taking up their issue with the Land Registry (but from LRR comments I doubt they would have any case?)

So I wouldn't lose any sleep over this but do come back here if you get any further contact from the Solicitors concerned?

bonfire1966

Thanks for the replies Eggbox and land registry. The solicitor has emailed me again threatening to take out legal proceedings against me if the full amount of the charge is not paid approx £16000. The equity in the house is only £9000 in total. They are at best owed £4500.
The house was due to be repossed and had considerable debt attached to it.
He also states that he has written to the land registry. He is.claiming that the house should never have been put in my name and doesn't know how I have done it!!! Claiming the joint tenancy was severed as a result of the restriction.
I have no idea what he thinks I have done. I have only used the tools that are there at mine at others disposal.
Any comments gratefully received.

eggbox

Bonfire1966

Ignoring the Solicitor is your best option.

The Solicitor is coming on heavy because they know the only chance of getting paid is for you to, stupidly, pay up because they are threatening legal action.

They are right the tenancy was severed by the Restriction (or more accurately the charging order) but the Land Registry decision to remove the Restriction allowed you to take sole ownership of the property. So you have done nothing wrong so don't worry.

My guess is that the Land Registry wrote to the creditor to explain you were applying to remove the Restriction and they never replied. So don't lose any sleep over threats on emails.

bonfire1966

Hi Eggbox. Thanks again.
I will let you know if anything else happens.
I applied to have the title in my name as soon as my ex died. This was weeks before I applied to have the restriction removed. However the land registry changed the title to my sole ownership as soon as I applied. I knew nothing of this severed tenancy.

Land_Registry

bonfire1966 wrote: »

Hi Eggbox. Thanks again.
I will let you know if anything else happens.
I applied to have the title in my name as soon as my ex died. This was weeks before I applied to have the restriction removed. However the land registry changed the title to my sole ownership as soon as I applied. I knew nothing of this severed tenancy.

Bonfire1966 most wouldn't know as a severed tenancy relates to your beneficial ownership. In your case the fact that you were joint legal owners but your ex had a CO against them meant that the beneficial ownership was severed.

Effectively the debt is against their share in the beneficial ownership hence the link to your ex's estate now.

Severance of the beneficial ownership can happen in a variety of ways with the most common being through wills/trusts where you leave your share in the beneficial ownership to someone.

DAKOTA45

The previous thread is making me think about whether a creditor can apply to put a charge on your property whilst you are between exchange of contracts and completion…

D45

bonfire1966

Land_Registry wrote: »

Bonfire1966 most wouldn't know as a severed tenancy relates to your beneficial ownership. In your case the fact that you were joint legal owners but your ex had a CO against them meant that the beneficial ownership was severed.

Effectively the debt is against their share in the beneficial ownership hence the link to your ex's estate now.

Severance of the beneficial ownership can happen in a variety of ways with the most common being through wills/trusts where you leave your share in the beneficial ownership to someone.

Thank you for your reply. I am still confused. Silly question maybe! The severed tenancy does not show on the title then?? The solicitor is really questioning how I have managed to remove my ex from the title when all I did was notify the land registry of his death as expected. Any thoughts.
I do think I am over thinking too much about this but I am a significant victim of domestic abuse including financial by my ex. Fearing bankruptcy as a result of my ex refusing to sell this house.

eggbox

bonfire1966 wrote: »

Thank you for your reply. I am still confused. Silly question maybe! The severed tenancy does not show on the title then?? The solicitor is really questioning how I have managed to remove my ex from the title when all I did was notify the land registry of his death as expected. Any thoughts.
I do think I am over thinking too much about this but I am a significant victim of domestic abuse including financial by my ex. Fearing bankruptcy as a result of my ex refusing to sell this house.

No, the severance doesn't show on the deeds which is why most people have no clue its happened?

Yes you are over thinking this and you're letting the Solicitor get to you when you need to ignore him. It's no concern of yours that the Solicitor doesn't like/understand what has happened regarding the removal of the Restriction? The fact is it has been removed and allowed you to take sole ownership of the property.

Therefore, you now are legally entitled to the financial interest in the house. The creditor had a CO on your ex's interest in the house which has now been reduced to zero. So as the Debt Charity advised, the creditor must try and claim from her estate.

So if you do get any further emails, either, ignore them or just politely explain you have nothing further to add on the subject and won't be corresponding further.