Charging Order? The myth

eggbox

jpirate wrote: »

Another thing that I'm wondering is if you do get a CO against a jointly owned house and you do sell and inform the creditor as required and you manage not to pay them any of the proceeds, will they not just know you have that amount of money and apply for an order of information or another one anyway?

Or could you draw the money out in cash amounts to use as you like before they do that or take any other action?

I assume you wouldn't be able to downsize and purchase another house as they just do another charging order???

It depends how interested they are in pursuing the debt further? A creditor places a CO on property as they are unable to get the money any other way? So as a debt collection agency operates like any other business, meaning any actions they take will cost them time, effort and money; they will consider if chasing the debt is likely to bring results?

From the limited examples I have been involved in the worst I've seen is the creditor contacting the debtor asking for repayment? No other follow up action was made.

And whilst it would be sensible (at least in the short term) not to buy an asset the creditor can attach the debt to; if the creditor shows no interest in chasing the debt further then it's likely (but not a definite) that they wouldn't chase another CO as the previous one gained them nothing?

jpirate

Thank you.... again!
And would it be sensible to not put the proceeds into an account or if you did initially, to draw it as and when you could as I'd assume money in an account was vulnerable ?

dongagon

Hello All

Long time lurker here. In spirt of sharing experiences, I completed on a house sale/purchase last week, without paying the creditor from the proceeds of the sale. I sold a property which had a restriction in my name, but was jointly owned; and have purchased a new one
Finding a solicitor who understood my situation required a bit of legwork before appointing them.
Thanks to all, for tips and advice that I received on this forum.

jpirate

That's good news! Thanks for proving it can work.

Bet you're really feeling relieved

Rangers123

Land_Registry wrote: »

Average timescale is currently around 9 working days

I've been checking every couple of days, at £3 a time, and it still hasn't been updated. I'm just nervous due to the previously referenced issues with this transfer. We are at about 4 weeks since the sale.

eggbox

jpirate wrote: »

Thank you.... again!
And would it be sensible to not put the proceeds into an account or if you did initially, to draw it as and when you could as I'd assume money in an account was vulnerable ?

Just make sure any money put in a bank is in a joint account as that can't be subject to any action by the creditor to seize funds by way of a third party debt order from a Court.

eggbox

Rangers123 wrote: »

I've been checking every couple of days, at £3 a time, and it still hasn't been updated. I'm just nervous due to the previously referenced issues with this transfer. We are at about 4 weeks since the sale.

I wouldn't fret as I did think (with respect) LRR timescale was a little optimistic? Brightonian (a previous poster doing the same thing) took quite while but turned out fine so hang on in there!

Land_Registry

eggbox wrote: »

I wouldn't fret as I did think (with respect) LRR timescale was a little optimistic? Brightonian (a previous poster doing the same thing) took quite while but turned out fine so hang on in there!

I would not recommend checking every day as that could be costly at £3 per check. I would rely on your conveyancer to confirm when it has been completed as they can check online using our business e-services.

Looking at the current details I note that we have written to the conveyancer to request additional details. Timescales naturally lengthen when incomplete applications are submitted.

I also note that the 'sale' referred to in previous posts is not quite as expected. I mention this purely as a reminder for anyone reading this thread that the devil is always very much in the detail.

The Transfer submitted is from the current four registered proprietors to one of them plus partner - not strictly speaking a Transfer by two or more to a third party for value in the context of overreaching as this thread has sought to in part cover.

Names have changed for some, presumably on marriage, but that is one aspect which has been raised with the conveyancer. Accounting for changes of name is a basic requirement when applying to update the register and very much a detail which needs to be covered off by supporting evidence or a conveyancer's certificate.

Hopefully the conveyancers involved will be able to supply the requested details and resolve the matter so that the Transfer can be completed shortly

Samsung_Note2

Hopefully a simple question.

Just about to remortgage and i have a Charging order (checked land registry),its interim and has been since they took me to court back in 2010.

Mortgage adviser was not sure if we have to pay the order as were not selling,just swapping from one provider to another...obviously would like to include it in remortgage and have done with it,but were struggling to reach the amount we need if Charging order is included.

So question is if were just remortgaging and not selling,can the Company with interim order stop us...?

eggbox

Samsung_Note2

Yes it will for the reason explained quite a few times on here recently.

You mortgage lender will always require their charge on the property (for the loan) to be the first on the register. This is to ensure if the house ever has to be repossesed they have "power of sale".

Power of sale enables the first charge holder to remove all other charges off the register to enable the property to be sold. If the CO you have isn't dealt with then the new mortgage lender would be second on the register. The new lender, therefore, won't remortgage under those conditions?