Charging Order? The myth

Land_Registry

eggbox wrote: »

As far as I can see, there is nothing to stop a transfer of the property to another person as long as the terms of the restriction have been complied with? The Restriction, however, will still remain on the deeds and will have to be dealt with by the new owner if they later sell the property.

Correct - as the transfer is a 'gift' the restriction will need to be complied with as per it's wording and it will remain on the register

If it is a form K restriction then it requires the conveyancer to certify that the named creditor has been notified. No consent is required.
It's important to read and understand the wording of the restriction to understand how it may be complied with.
Compliance does not then translate to it also being automatically cancelled in the example you have mentioned

eggbox

Land_Registry wrote: »

If it is a form K restriction then it requires the conveyancer to certify that the named creditor has been notified. No consent is required.

Thanks, as ever, LRR for confirming.

You may understand, however, why sellers get confused when, paid for, legal professionals are giving them the wrong advice regarding consent being required?

I'm not too sure many other, comparable, professions would get away with the level of incompetence conveyancers continue to display?

Land_Registry

eggbox wrote: »

Thanks, as ever, LRR for confirming.

You may understand, however, why sellers get confused when, paid for, legal professionals are giving them the wrong advice regarding consent being required?

I'm not too sure many other, comparable, professions would get away with the level of incompetence conveyancers continue to display?

I do understand and appreciate the confusion but we can all make mistakes, whether we are being paid or not. We don't always get it right ourselves at HM Land Registry

As posted previously if advice received is confusing or seen as being wrong then the firm will have a process for referral/complaints and I would encourage those directly involved to raise it with the firm in that way. If nothing is done re specific examples then they will continue to 'get away with [it]' as nothing happens to change that view or educate them

eggbox

Land_Registry wrote: »

I do understand and appreciate the confusion but we can all make mistakes, whether we are being paid or not. We don't always get it right ourselves at HM Land Registry

Of course; but I think their is a big difference between an honest mistake happening and incompetence occurring through a lack of professionalism in not checking the information you are supposed to know?

Land_Registry wrote: »

As posted previously if advice received is confusing or seen as being wrong then the firm will have a process for referral/complaints and I would encourage those directly involved to raise it with the firm in that way. If nothing is done re specific examples then they will continue to 'get away with [it]' as nothing happens to change that view or educate them

I agree and if more people followed this advice I do believe it would make a difference as conveyancers would have to check the advice they give out.

mintminty59

Eggbox , Cabot have added a load of charges onto the origonal debt and it is now £900 over what the charging order balance was and they are refusing to remove it unless I pay what they are demanding. They told me to just take them back to court which is going to cost me money and its adding huge delays to the mortgage completing. I am between a rock and a hard place and dont know what to do

eggbox

mintyminty59

Unfortunately, anything to do with going to Court will cost you money? However, and I'll need some input from Land Registry Rep on this one; but have you got a copy of the CO the Court stated had to be paid? If you have, and can then also prove you have paid the creditor that amount owed; then the LR may be able to remove the charge? A creditor can only add charges to the debt that the Court has agreed such as interest? Any other charges the creditor has added are probably illegal so a call to the FCA on this would be your first step. Especially if Cabot won't explain what they are?

mintminty59

I dont have any of the court papers due to the age of this issue, however the clark in the court told me what the amount was awarded. At first it was thrown out apparently and they had to re apply. Ideally I would like to pay the court directly or instruct the solicitor to do so, thus giving me the proof its been paid and for LR to remove the charge.

eggbox

Ask the Court for a copy of what they are telling you the info from? Hopefully, LRR may have an opinion on how this could be handled?

Land_Registry

eggbox wrote: »

Ask the Court for a copy of what they are telling you the info from? Hopefully, LRR may have an opinion on how this could be handled?

What we have on record is often limited to an application form and copy of the actual order.
The register will normally confirm the basics re who the creditor is and the fact that it's a charging order but it won't quote any amount
You can apply for a copy of the form/order by post but it reads as if you have the 'amount' details

eggbox

Land_Registry wrote: »

What we have on record is often limited to an application form and copy of the actual order.

The order should show the amount the CO was granted for?