Charging Order? The myth

dawnyp64

thanks again,Eggbox...luckily im in contact with him and keeping each other informed.Iv spoken to Eversheds who have said they have nothing to do with the debt now and its back with NR,so to contact them..and sorry Eggbox..is it the buyers solicitor or NR who provide the certificate (RX3 ?) to the LR?
as for both solicitors,its just getting silly now...very worrying at this late stage!

eggbox

dawny

The Form K Restriction states that no changes can be made;

"without a certificate signed by the applicant (the person buying the property) for registration or their conveyancer (usually their Solicitor) that written notice of the disposition was given to [name of Person with Restriction - in your case NR) at [address for service - NR address], being the person with the benefit of [an interim or a final] charging order on the beneficial interest of [name of judgment debtor -your Ex] made by the [name of court] on [date] (Court reference [insert reference])

So from now on, just forget about NR as their only involvement regarding your sale is that they have to be legally notified the sale has happened. That's it.

Once your buyers Solicitor has then informed the Land Registry (which is all the "Certificate" means in the Form K wording) then the LR has to change the property's registration details. The "Restriction" is then removed as at that point it becomes "overreached" as your Ex no longer has any BI in the property.

There is, also, no need for any RX3 certificate to be produced which are usually used when you want the CO or Restriction removed whilst you still own the property. As you no longer will be its not required as the Form K requirements (having been met) do the job for you.

Note also, that it doesn't matter if the CO is Interim or Full to secure the Restriction. A lot of creditors are now only going as far as the Interim part as they have found it has the same effect for a Restriction to be placed and saves them time and money going for the Full order.

harisumo

eggbox, you really are worth your weight in gold, i have been puzzling for some weeks as to why my restriction never got past the interim stage! the only thing i wonder about is are they legally able to add more interest onto the original debt in the future if it is only an interim charge?

eggbox

harisumo

The answer is no because at the Interim CO stage a Charging Order hasn't yet been granted. The "Interim" bit is just a means to, legally, ensure the creditor has to be notified if you are selling your house.

My belief is that certain creditors have realised that going after so many CO's is costing them huge court fees and solicitors costs but isn't actually returning them much money in the short term due to people not selling up.

As enforced house sales are a virtual no go they are obviously having to look at costs and, maybe, have seen that pursing full CO's is not necessary given the actions of most Solicitors who want to pay them off anyway?

Hopefully, this thread can redress that balance!

harisumo

Well all I can say is after the nightmare I've had for the last two/three years at last I am beginning to feel a sense of relief and I can't help wondering why they went through the whole performance especially as I originally offered them quite a reasonable reduced payment on the loan. I think they are beginning to realise that this is a gamble that dosen't always pay off! Thanks again eggbox for your continued contribution to this thread, it certainly let me see there was light at the end of the tunnel!

eggbox

Glad to hear, Harisumo, and hopefully a few more reading this thread will benefit too!

And we can only speculate on why a creditor would go after a CO rather than a resonable repayment. However, if you consider that we're dealing with institutions that, when base rates fell to historic lows, felt it was sensible to raise APR rates to 30+%; then I think you have your answer.

dawnyp64

well.im reaching the end of my rope..it has to be said.Iv found out today that my sol's have told the buyers sol's to contact Eversheds,who,have had nothing to do with the restriction for months! the buyers sol's are waiting for a reply from them and refuses to complete until Eversheds sort this issue out!!!aaargh!!!!!!...im STUNNED that these people do the job they do!..also theyve emailed my sol' 3 times in 6 days to be told ''we'l get back to you''..he hasnt.awful situation.
***
spoke to my solicitor who wanted to know where i had got my info from..besides being reminded that i dont have 7 years conveyancing experience.told him iv found more on here over 1 weekend than anything he had told me.
we now have to wait for my ex to contact my solicitor and agree to the statement of completion.also my solicitor to contact the buyers solicitor ''regarding the issues surrounding the restriction in the proprietorship register''...we'l see if he does.eh..going by the past ''effort''..

worn out
ive got til a week tomorrow to get this sorted otherwise thats it..i cant believe these people are ''professionals''

eggbox

dawny

I understand your frustration, given your Solicitor's actions, but I would put in a call to your buyers Solicitors asking what there concern is given the terms of the Restriction on your property only requires them to notify NR that the property has been sold to a third party for the Restriction to be removed.

Don't undersetimate you may well be dealing with yet another Solicitor who doesn't seem to undertstand the changes in the LR rules since 2003/3. You have nothing to lose by asking them this question.

terryw

eggbox wrote: »

dawny

I understand your frustration, given your Solicitor's actions, but I would put in a call to your buyers Solicitors asking what there concern is given the terms of the Restriction on your property only requires them to notify NR that the property has been sold to a third party for the Restriction to be removed.

Don't undersetimate you may well be dealing with yet another Solicitor who doesn't seem to undertstand the changes in the LR rules since 2003/3. You have nothing to lose by asking them this question.

A very good idea eggbox but the sols for the buyer may well refuse to even speak to dawny as she has solicitors acting for her - professional ethics and all that .

Worth putting the thing in writing to her solicitor and sending a copy to the buyer's sols.

bw dawny

dawnyp64

youre right Terry,they wont speak to me on the phone i dont think,but i may send an email to my sol to be forwarded to the buyers sol.
Iv spoken to a senior conveyancer who wasnt much better than the one dealing with all of this..which is worrying.How can they not know about these procedures??
Eggbox..I believe that the buyers sol think that the onus is on us to deal with NR to get the restriction removed and i dont think they will proceed any further until it is.Also,i think my sol still has the opinion that payment from my ex towards the debt,is the only way to get NR to remove the restriction...
I see it as this :
we go through with the sale
buyers solicitor notifies NR of the sale
buyers solicitor notifies the LR of the sale providing a duplicate of their written notice to NR (taking on board,Eggbox of what you said earlier re the RX3)in ref to transfer of deeds
the restriction is removed off the registry
NR make a legal claim for payment of the debt,to the ex on his receipt of funds.simple?.apparently not..
apparently our case is complicated,which is the cause for these delays..yep..im sure our situation is unique....not!
Il fight this all the way,but its difficult to stay positive when both solicitors seem determined to stick to their guns even though theyre so wrong..