Charging Order? The myth

eggbox

Jackie235

Did you manage to get the buyers solicitor to contact the creditor with the Restriction?

Jackie235

eggbox wrote: »

Jackie235

Did you manage to get the buyers solicitor to contact the creditor with the Restriction?

Hi eggbox, my solicitor has been in touch with them and asked them to send LR the certificate stating that notification was sent to SS.
They are waiting for a reply from the buyers solicitor to say they have done this.
I have also received a letter from the court stating that they have asked SS to confirm the amount they are claiming on the CO by 17.09.2019, if not received the CO would be discharged.
I rang the court yesterday to ask if there was any further determination but there was nothing on the system showing SS had complied but they said it can take 6 days for info to be uploaded and to ring back next week!
I found this bizarre as they stated in the original form what the amount was.

Land_Registry

Jackie235 wrote: »

Good morning LR, wondered if you could check if there is any update on my title?
Much appreciated
Jackie

ND77026 - still with us but looks like they have satisfied the issue around complying with the form K restriction
There is though one other (small) point to be resolved and I've asked the caseworker to contact the solicitor today.

Jackie235

Land_Registry wrote: »

ND77026 - still with us but looks like they have satisfied the issue around complying with the form K restriction
There is though one other (small) point to be resolved and I've asked the caseworker to contact the solicitor today.

Thank you so much LR, this has lifted a weight off! Thanks for your invaluable input on this thread,

Thank you also eggbox, I will report back what happens next.

Jackie235

Hi guys, to follow up, I have just had confirmation that Land Registry have now completed the transfer and the restriction has been complied with and automatically removed by providing the certificate to them showing that the holder was notified of the disposition.

Thank you so much for the information on this thread, if it wasn’t for the input by members here then the money from the sale would have been taken to pay this once unsecured debt turned secured.

Now to arrange an affordable repayment.
Thanks again Eggbox and LR for your help and assistance and to Blueback for the original post.
Jackie

Teea

Hi Everyone,
This is a repeat from another thread, but after an increasingly desperate 7 months of conveyancing, I need advice as my solicitors are unwilling to proceed with my purchase of a property as it has restrictions on the register. There are two restrictions >10 years old. The property I was hoping to buy is under joint ownership - there are two owners, only one of which was subject to the court judgments that created the restrictions.
The seller's solicitors applied to have the restrictions removed two weeks ago, but received a rejection from the Land Registry, stating that "Whereas the restriction may be one that would cancelled automatically upon registration of a transfer that satisfies the "overreaching" requirements of the Law of Property Act 1925, supported by suitable evidence of compliance with the terms of the restriction, the facts recited in support of your application do not demonstrate that the protected interest has come to an end in advance of such a transfer."
A Land Registry officer told me that the restrictions would be removed upon transfer of title, as long as the application to remove the notices/restrictions happens simultaneously with the request to transfer the title. In their previous application, the sellers had not yet requested a transfer of title. I am now confused about what to do as the buyer - how can those restrictions be removed, who can do it, is it necessary to do so before completion, and how can I find a solicitor familiar with this problem who can help me?

The restrictions are, as stated in the Official Copy of Register to Title:
(24.11.2008) RESTRICTION: No disposition of the registered estate is to be registered without a certificate signed by the applicant for registration or his conveyancer that written notice of the disposition was given to Cabot Financial (UK) Limited at P.O. Box 250, West Malling, Kent ME19 4LT, being the person with the benefit of an interim charging order on the beneficial interest of Adwoa Aniwaa made by the Lambeth County Court on 31 October 2008 (Court reference 8XE33202).
(01.02.2011) RESTRICTION: No disposition of the registered estate, other than a disposition by the proprietor of any registered charge registered before the entry of this restriction, is to be registered without a certificate signed by the applicant for registration or their conveyancer that written notice of the disposition was given to Mayor and Citizens of the London Borough of Lambeth at care of Incasso LLP, Trafalgar House, 29 Park Place, Leeds LS1 2SP, being the person with benefit of an Interim charging order on the beneficial interest of Adwoa Aniwaa, made by the Lambeth County Court on 11 January 2011 (Court reference 1LB00043).

Jackie235

YHi Teea

It would appear that your in a similar situation but you are the buyer, you need to go back through the thread and find the required info to tell your solicitor how to deal with this.

My solicitor had no idea of the law on this and I had to explain how the restriction could be dealt with on transfer of ownership with land registry.

These are Form K restrictions and you need to make them take note of the wording of the restriction
“RESTRICTION: No disposition of the registered estate, other than a disposition by the proprietor of any registered charge registered before the entry of this restriction, is to be registered without a certificate signed by the applicant for the registration or their conveyancer that written notice of the disposition was given to ***”

They simply need to notify the restriction holder that the property has been disposed of for money and no further information is required other than this, they do not need any agreement from them.

They just need to show Land Registry that they have done this during the transfer of ownership.

As stated in the Land Registry's Practice Guide 76 section 4 paragraph 3 and they just need notice that the above has been complied with:

"We will automatically cancel the Form K restriction once it has been complied with on registering a transfer of the registered estate for valuable consideration. We will assume that if the debt secured by the charging order has not been paid, your client’s interest will have come to an end with the postponement of the charged beneficial interest under section 29 of the Land Registration Act 2002."

I’m sure eggbox will confirm the above but you need to get you solicitor on side and ask them to call land registry to confirm the above if they don’t believe you!
Hope this helps
Jackie

Teea

@ Jackie, Thank you for going through the necessary steps - your confirmation of this is very valuable and it is reassuring to hear that you were able to convince your solicitor by providing the necessary legal references. I will definitely try this and let you know how I got on!
Teea

Bizzie_Lizzie

I'd be grateful for some advice on whether a Form K restriction is valid if secured against a solely-owned property.


A friend stood as guarantor for his girlfriend's Wonga loan. When she stopped payments Wonga in the end secured a charge on his property by means of a Form K restriction.


However, the property is now and has always been, in his sole name, and the relationship ended about 7 years ago. Does this mean that the Form K restriction is invalid?

Land_Registry

Bizzie_Lizzie wrote: »

I'd be grateful for some advice on whether a Form K restriction is valid if secured against a solely-owned property.

A friend stood as guarantor for his girlfriend's Wonga loan. When she stopped payments Wonga in the end secured a charge on his property by means of a Form K restriction.

However, the property is now and has always been, in his sole name, and the relationship ended about 7 years ago. Does this mean that the Form K restriction is invalid?

A form K can be registered against a sole proprietor so it would and could be still valid