Charging Order? The myth

eggbox

jayne7868

The Landmark Restriction is to protect the loan they have given you for the mortgage and anyone with a mortgage has one of these placed on their deeds. It prevents you selling the house and not paying the mortgage amount owed.

The other Restriction is a Form K which notifies that the creditor, who obtained a CCJ against your hubby, has a charging order for the debt placed on hubby's "Beneficial Interest" in the house (his share of the equity.)

That, second, restriction will have to be dealt with before any re-mortgaging of the property can proceed. This is simply because your new lender will insist on their charge/restriction being given priority (or the first charge or restriction) over all other charges or restrictions on you deeds.

They insist on this as the first charge holder has the "power of sale" should the property ever have to be repossessed. Power of sale allows them to remove all other charges from your deeds to enable them to sell the property to recoup their loan.

Therefore, you will have to deal with the Form K Restriction first (to remove it from the deeds) to allow the new lenders registration to be the first charge or restriction. Landmark's restriction will, obviously, be removed if they are repaid their loan by the new lender.

desperatetomove85

Hi, hoping for some help please.

Am in the process of selling, actually needing to Exchange, however our buyers solicitor seems ignorant on charging orders/restrictions. There are 2 standard form K restrictions on our title, but only in my name.

Using the advice posted on this thread, I got my solicitor on board with how to deal with them, but the buyers solicitor seems not to understand or believe this approach, my solicitor even spoke to Land registry to confirm that notifying the beneficiaries in writing and providing an undertaking to the buyers solicitor that this had been done was correct.

Purchasers solicitors are demanding settlement of the debts and RX4 form first, but we know we don't need to do this.

What can we do?

eggbox

desperatetomove85

If the buyers Solicitor won't believe the information provided by the Land Registry (and explained by a fellow Solicitor) then I doubt there is much that can be done to overcome their stubborn ignorance?

However, whether to proceed with the sale, or not, isn't the solicitors choice; it's the buyers. So a lot will now depend on how much the buyers want your house?

If its a lot then it can be explained that their solicitor is insisting on an, unnecessary, obstacle that will prevent them owning the home? So a lot will depend on how you approach them on that matter?

desperatetomove85

Thanks eggbox. Our solicitor is calling them tomorrow to explain again in detail and also assure them they have confirmed the steps taken with the land registry. Hoping this does rhe trick! Shocking how poorly informed so called professionals can be.

eggbox

It is shocking but good luck and please let us know the outcome as all information helps others in the same position!

holly09

Hi we are within days of exchanging on the sale of a property, with completion happening a couple of weeks later. We've just had notice that a bank has applied for an interim charging order (will be a restriction due to joint ownership). Does anyone know how long it actually takes for the interim charging order to be put on the registry at land registry?

Land_Registry

holly09 wrote: »

Hi we are within days of exchanging on the sale of a property, with completion happening a couple of weeks later. We've just had notice that a bank has applied for an interim charging order (will be a restriction due to joint ownership). Does anyone know how long it actually takes for the interim charging order to be put on the registry at land registry?

Average timescale is 8 working days

But that's probably irrelevant if you are trying to complete before it's registered. The key is 'priority' of an application so for example if your purchaser completes and submits an official search to protect their application they can achieve priority over an application which is submitted later.

So it's less an issue if it appearing in the register but more a case if who has priority - your solicitor can explain in specific terms re possible order of events here and how quickly the court and then creditor may act also

I have assumed by 'notice' you don't mean anything from us

Diana_Prince

Ok long post alert, going to try and summarise as much as poss!

Mum & dad jointly owned house.
Dad died 2010.
Mum trying to remortgage now.
Found out we had 'charges' against the house from around 2008 - restrictions just in my dad's name.
Mums credit rating excellent - no issue there.
It would appear that 2 of the charges/restrictions are for the same RBS debt but with different DCA's.
I have had dad's name removed from the deeds as we weren't aware this needed to be done!

We are looking at paying off these charges with the remortgage but obviously I don't want my mum to pay twice for the same debt!

Any advice greatly appreciated.

eggbox

The DCA with the earliest dated charge would have priority for the debt but I would check the charges are for the same debt as I haven't come cross that happening before?

Diana_Prince

eggbox wrote: »

The DCA with the earliest dated charge would have priority for the debt but I would check the charges are for the same debt as I haven't come cross that happening before?

Thanks, its with Cabot, I rang them as we have zero correspondence from them to ask about it and they kept me on hold for 20 mins as they had dad on their record but "we have no evidence of this debt anymore and I need to investigate what happened to this debt" then as if by magic after a colleague interrupted them "oh he owed us 6500 for an RBS loan so if you want to pay that now over the phone" HAHAHA I wish I had 6.5k spare! So I said could they write to me with the details including the reference number so I could look into it!

Arrow finance are chasing an RBS loan for 6500 too which I have all the paperwork for so I'm waiting on Cabot to send me more details!