Charging Order? The myth

eggbox

I'd assume the worst on this and that interest will be added to the 10, 713 amount owed at the time of Judgement. Always remember if they only have a restriction you have options as this thread explains and you can always try to make an offer to settle for a lower amount too?

MrsJT_2

It is definitely just a restriction, it’s my children’s inheritance being effected by something my
mom was pressured into doing but can’t prove that. The solicitors have advised for the sale to complete the beneficiary would have to sign to say the amount they want is settled which they won’t do if they want a tone of interest on top. 

I’ll see what comes of it and see if I can negotiate but I can’t see it happening 😢
thank you eggbox I really do appreciate your help. 

Stesar

Hi.

Not sure if my opinion is any use to you. I managed to sell my property pretty easily, considering, albeit you may have seen that the situation afterwards is proving interesting!

That said, I'm now in a position to negotiate and having to deal with interest on top of the original amount.

If it helps, my strategy if I hadn't found a decent conveyancer, would have been, "either we negotiate or I don't sell it". I'm not aware of your circumstances obviously, but thought it worth mentioning in case you hadn't thought of it.

eggbox

Mrs JT
Your solicitor is talking about the sale completing, whereby, the restriction is removed prior to sale which is usually what they expect to happen. The facts are, however, that to register a new owner then only the terms of the restriction have to be met. In your case all that is required to comply with the restriction on your deeds is confirmation to the Land Registry, by the buyers side, that the creditor has been notified that the property is being sold.

At this point, the restriction isn't removed by these actions. However, as long as the sale is for value (or as I notified a few posts back, the Land Registry have been informed the sale is for value) then the restriction becomes over reached upon entry if the new owners details on the deeds. The debt still exists, but the creditor now has to chase the money which is difficult fir them.

Don't expect your solicitor to like you explaining this, or act how you want, but they won't be able to dispute the facts.

eggbox

Mrs JT
Stesar makes a great point and it may be worthwhile sending him a message to get the details of his conveyancer?

MrsJT_2

Stesar said:

Hi.

Not sure if my opinion is any use to you. I managed to sell my property pretty easily, considering, albeit you may have seen that the situation afterwards is proving interesting!

That said, I'm now in a position to negotiate and having to deal with interest on top of the original amount.

If it helps, my strategy if I hadn't found a decent conveyancer, would have been, "either we negotiate or I don't sell it". I'm not aware of your circumstances obviously, but thought it worth mentioning in case you hadn't thought of it.

Thank you. I’m selling as my parents have passed away and there’s an outstanding mortgage which needs settling. 

MrsJT_2

eggbox said:

Mrs JT
Your solicitor is talking about the sale completing, whereby, the restriction is removed prior to sale which is usually what they expect to happen. The facts are, however, that to register a new owner then only the terms of the restriction have to be met. In your case all that is required to comply with the restriction on your deeds is confirmation to the Land Registry, by the buyers side, that the creditor has been notified that the property is being sold.

At this point, the restriction isn't removed by these actions. However, as long as the sale is for value (or as I notified a few posts back, the Land Registry have been informed the sale is for value) then the restriction becomes over reached upon entry if the new owners details on the deeds. The debt still exists, but the creditor now has to chase the money which is difficult fir them.

Don't expect your solicitor to like you explaining this, or act how you want, but they won't be able to dispute the facts.

Thank you Eggbox, looks like I may have a battle on my hands with the solicitors but hopefully I can get them to agree so I can negotiate once the sale has completed. 

Thank you again 😊

Stesar

Just to give people hope that there are conveyancers out there that understand the process. This is the response I had from the one I used, in reply to my query re the restriction, before (and subsequently why!!) I appointed them.

"This is fine, it is an everyday restriction and there is no issue with it. I will give notice just before completion to comply with the restriction and completion will have taken place if they send a redemption figure and will no longer be entitled to any proceeds from the house."

eggbox

Stesar 
That's great info to impart and I, genuinelly, think this issue is such a problem for so many solicitors becuse they don't understand the restriction process on jointly owned/sole debtor homes. 

Gotkeys

I wonder if anyone could advise me on the house we are buying.

We are close to exchanging but there is an equitable charge in favour of Northern rock, created in 2007. The owner of the house (and debtor) died last year, and the house is being sold by his wife. Our solicitor has said we can't exchange until the vendors solicitor has had the entry removed. The vendors estate agent has told me her solicitor has applied to have it removed.

I have a few questions and would be very grateful for anyone's help:

1. Can the entry just be removed, or does it need to be paid first?

2. If it needs to be paid how hard could it be to find who now owns the debt, as Northern Rock no longer exist?

3. Why can't we buy the house, and the vendors solicitor holds the money to pay whoever the money is owed to?

4. How long is this likely to take to resolve? We thought we were about to exchange!

Thanks