Charging Order? The myth

eggbox

Arefer
I would add that question 4 you asked has probably been removed because you've mentioned the firm of solicitors involved. But to answer that question; Land Registry Rep will always tell you it is the wording of a Restriction that you need to comply with. Therefore, you should send the notification of the sale to the address given in the restriction details registered. If the address for the details for the restriction holder, or their agent, has changed; then that is not a matter you need to concern yourself with as it is there responsibility to update their details.

I would further add that I am in the process of helping someone sell their property with a restriction and I would advise that the Land Registry is currently taking around 4-5 weeks to start processing applications. Having sent the required notification to the restriction holders agent (who are one of the most savage representatives for creditors) on the same day as the transfer application to the LR, we thought the processing delay may cause a problem from the creditor. To date they haven't even replied to the letter which I can only put down to the delays being caused to many businesses administration by the covid problems. 

Arefer

eggbox said:

Arefer
I would add that question 4 you asked has probably been removed because you've mentioned the firm of solicitors involved. But to answer that question; Land Registry Rep will always tell you it is the wording of a Restriction that you need to comply with. Therefore, you should send the notification of the sale to the address given in the restriction details registered. If the address for the details for the restriction holder, or their agent, has changed; then that is not a matter you need to concern yourself with as it is there responsibility to update their details.

I would further add that I am in the process of helping someone sell their property with a restriction and I would advise that the Land Registry is currently taking around 4-5 weeks to start processing applications. Having sent the required notification to the restriction holders agent (who are one of the most savage representatives for creditors) on the same day as the transfer application to the LR, we thought the processing delay may cause a problem from the creditor. To date they haven't even replied to the letter which I can only put down to the delays being caused to many businesses administration by the covid problems. 

That’s great to know, thanks for the reply. Hopefully, they won’t bother in my case too, although I’m thinking of asking the seller’s solicitor to provide an undertaking to discharge the restriction’s interest (interim charging order), only if any problems arise with removing the Form K Restriction via the usual overreaching process due to creditor action after notification.

The os1 priority search might also provide some sort of protection against the creditor.

The restriction holder’s solicitors have now advised that they are happy to receive notice at their old address mentioned on the deeds, so I edited out that question.

Thanks for your help.

EyesOnThePrize

Hi Land Registry rep
 
Apologies if this specific scenario has already been addressed, I have had a brief look around the forum but may have missed it. 

We are in the process of buying a freehold house and I have spotted the following two restrictions on the title:

2 (19.05.2008) 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 Northern Rock Plc (Ref: X) care of Eversheds LLP, Fairfax House, Merrion Street, Leeds, LS2 8HE (Ref: X) being the person with the benefit of an interim charging order on the beneficial interest of Mr X made by the X under claim number X. 

3 (31.12.2008) 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 Tesco Personal Finance Limited C/O Incasso LLP at Trafalgar House 29 Park Place Leeds LS1 2SP, being the person with the benefit of an Interim charging order on the beneficial interest of Mr X made by the X on X (Court reference X). 

The person who was the subject of both interim charging orders has since died, and the property is held as TIC by their widow and their grandchild, who inherited Mr X's share of the freehold. I am puzzled why the restrictions were not removed when the property was inherited by the grandchild and their name added to the title. Please can you confirm what Land Registry will require to lift these restrictions from the title?

Many thanks for any assistance. 

Land_Registry

EyesOnThePrize said:

Hi Land Registry rep
Apologies if this specific scenario has already been addressed, I have had a brief look around the forum but may have missed it. 
We are in the process of buying a freehold house and I have spotted the following two restrictions on the title:

2 (19.05.2008) 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 Northern Rock Plc (Ref: X) care of Eversheds LLP, Fairfax House, Merrion Street, Leeds, LS2 8HE (Ref: X) being the person with the benefit of an interim charging order on the beneficial interest of Mr X made by the X under claim number X. 

3 (31.12.2008) 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 Tesco Personal Finance Limited C/O Incasso LLP at Trafalgar House 29 Park Place Leeds LS1 2SP, being the person with the benefit of an Interim charging order on the beneficial interest of Mr X made by the X on X (Court reference X). 
The person who was the subject of both interim charging orders has since died, and the property is held as TIC by their widow and their grandchild, who inherited Mr X's share of the freehold. I am puzzled why the restrictions were not removed when the property was inherited by the grandchild and their name added to the title. Please can you confirm what Land Registry will require to lift these restrictions from the title?
Many thanks for any assistance. 

Such interests are not automatically removed from the register. Invariably an application has to be made to cancel them .
i suspect in the scenario as described that the widow transferred the legal ownership to herself and the grandchild. No sale took place so the restrictions, which protect the creditors’s charging orders which in turn are against the deceased’s beneficial share remain. 

If they are to be cancelled then we would need an RX3 plus supporting evidence that the charging orders/the creditors’s interests had come to an end. Or RX4s from each creditor withdrawing them. 

However if you are the buyer, and you’ve read this thread, you’ll appreciate that they can also be overreached on a sale providing they are complied with. If you are us8ng a conveyancer I’d suggest you seek their legal advice to clarify and confirm  

eggbox

Hi Land Registry Rep
Could I ask (yet another) favour please as the house sale I've been helping has suffered a !!!!!! up from HMRC who has inputted the wrong house number from the SDLT1 form sent in to them but have, also, lost the form sent in so they can't verify for themselves their own error? The people concerned have to resubmit a copy of the SDLT1 form they submitted (luckily I advised them to photocopy it)  to verify the number which was submitted and not what the operator inputted into the system, Quite incredible really, however, the people concerned have already written to the Land Registry to explain there would be a delay in receiving the SDLT Certificate of payment (as there was a misunderstanding that SDLT had to be paid as it concerned a second property) and, understandably, they are now concerned that the Land Registry is going to return the forms as no certificate has yet been received? Could I, please, ask if their is anyway you can confirm to the department concerned why there is a further delay (and also why) and to continue holding the processing until the certificate is received, please? The title concerned is SF69135. Many thank in advance of anything you can do on this matter

Popadaisy

Hi hope you could help put my mind at rest . 
My husband had an accident years ago it went to court and he lost his case . His solicitor took out an insurance policy that pays court cost if you loss said insurance company went bust before any claim could be made . We were allowed to claim from the FCA %80 of court costs . They wanted the rest asked us if we could afford it we said no they have put a charge on our house but is actually just a restriction . They sent me an email saying the will not be forcing a sale and have no intention of doing so . But I'm still a bit worried that they might . So can they do that or can I relax and just get on with life . 

eggbox

Hi Susantina69
Firstly, do you mean FCA (Financial Conduct Authority) or FSCS (Financial Services Compensation Scheme)? 
Secondly, how much is the debt amount for as this is, most likely, why you have been given a written assurance they won't be pursuing an Order For Sale?
Whilst there are no guarantees in life, I would take them at their word if they've gone out of their way to explain what they have and not worry about an OFS being pursued. They are, most likley, only interested in is "securing" the debt for accounting purposes and I couldn't see a Judge, either, ever granting an Order For Sale on a family home given the circumstances of the debt, anyway, So I wouldn't worry at all as OFS are rarely pursued even by aggressive creditors as they are extremely difficult to obtain.

Land_Registry

eggbox said:

Hi Land Registry Rep
Could I ask (yet another) favour please as the house sale I've been helping has suffered a !!!!!! up from HMRC who has inputted the wrong house number from the SDLT1 form sent in to them but have, also, lost the form sent in so they can't verify for themselves their own error? The people concerned have to resubmit a copy of the SDLT1 form they submitted (luckily I advised them to photocopy it)  to verify the number which was submitted and not what the operator inputted into the system, Quite incredible really, however, the people concerned have already written to the Land Registry to explain there would be a delay in receiving the SDLT Certificate of payment (as there was a misunderstanding that SDLT had to be paid as it concerned a second property) and, understandably, they are now concerned that the Land Registry is going to return the forms as no certificate has yet been received? Could I, please, ask if their is anyway you can confirm to the department concerned why there is a further delay (and also why) and to continue holding the processing until the certificate is received, please? The title concerned is SF69135. Many thank in advance of anything you can do on this matter

Due to Covid impact it’s very unlikely to be cancelled so I’d simply use our Contact form to submit the details to explain what’s happened 

eggbox

Land_Registry said:

Due to Covid impact it’s very unlikely to be cancelled so I’d simply use our Contact form to submit the details to explain what’s happened 

Thanks LRR and I will ensure that is done!

Tiatodd

Husband has just passed away and the property was in his name.  I have a restriction on the property but it does not state shares.  Our solicitor did try to put one on that stated The first 17% of a net sale was mine ( due to me putting down the deposit) and the rest was 50/50 but the land registry rejected this. There are 2 other restrictions and a charging order on the property. I would like to take over the mortgage but cannot afford to do this and pay off the debts.  Is there a way of being able to discharge the debts at all.