Charging Order? The myth

eggbox

The really scandalous thing about these debts (and is what this thread is fighting against) is that credit card and bank loans are unsecured credit. This means the creditor gets to charge a much higher rate of interest as they are, supposedly, loaning the money without security. This means they are factoring in the risk that a percentage of loans will fail. Fair enough, you pay a higher interest rate as you aren't offering any security. If you go HERE you will see Barclays bank still explain that an unsecured doesn't put your home at risk.

But roll forward to when a person actually runs into trouble and defaults on the loan and then, hey presto, the creditor is allowed to put the debtors home at risk by attaching the debt to it? It's outrageus and why no DCA should be allowed to purchase the loans and then put the fear into people who have fallen on hard times. That's why this thread tries to give some info to help people fight back.

0ver60

I'm tying to understand where I stand in relation to my house which has a charging order/restriction on it due to a creditor taking my partner to court.

The debt was in her name only and a little while ago she died and made no will.

I understand that the house that was jointly owned, but because of the CO this is now a tenancy in common.

So that means the I have to apply for probate to transfer her half over to me.

How does that effect the CO/restriction ?

I have no intention of selling the house, so should I just let sleeping dogs be and not do anything.

Am I right in saying that the because of the relatively small amount still owed approx £3000 the creditor with the CO/restriction would find it very difficult to get a court to apply a final charging order.

thanks

eggbox

Hi Over 60
You have it right about you and your partner becoming tenants in common once the CO was granted. That she has, sadly, passed on since then without leaving a will means her share of the property will form part of her estate. Who would inherit the estate would depend on whether you were married or in a civil partnership? If you were married or in a civil partnership then it would be you that inherits and probate will, usually, need to be sought to transfer to your name.

Land Registy Rep will confirm, however, that I believe you will need to inform the creditor to satisfy the restrictions terms of disposition if you transfer the property. Under these circumstances the restriction would stay on the deeds as no overreaching has occurred. So, given your intention to stay in the property, it may well suit to let sleeping dogs lie?

However, if you weren't married; then the estate is likely to pass to a blood relative of your ex-partner? What happens then is down to the person who inherits the estate and, if this is the case; then it may also suit to let sleeping dogs lie? 

Land_Registry

The registered title deals with the legal ownership so if in joint names then on her death it passes to you. The legal ownership doesn’t form part of her estate so you don’t need probate. 

You can apply to update the register using form DJP and the death certificate. No transfer. 

The TIC you refer to relates to your beneficial ownerships and if she had COs against her then those will have severed your joint tenancy. 

So it reads as if you have a form A restriction and a form K restriction on the title. They will remain on the title when it’s updated with the form DJP 

eggbox

Hi Land Registry Rep thank for clarifying. However, I think many people (me included) struggle with what the rights are deferred through legal ownership of a property when the beneficial ownership deals with the money side?  For example this next bit is lifted from Citizens Advice;

Jointly-owned property

Couples may jointly own their home. There are two different ways of jointly owning a home. These are beneficial joint tenancies and tenancies in common.

If the partners were beneficial joint tenants at the time of the death, when the first partner dies, the surviving partner will automatically inherit the other partner's share of the property. However, if the partners are tenants in common, the surviving partner does not automatically inherit the other person's share

So is it possible just to clarify what legal ownership actually means as anyone reading the above, perhaps, wouldn't understand about the legal ownership side or what implications it has?

Land_Registry

eggbox said:

Hi Land Registry Rep thank for clarifying. However, I think many people (me included) struggle with what the rights are deferred through legal ownership of a property when the beneficial ownership deals with the money side?  For example this next bit is lifted from Citizens Advice;

Jointly-owned property

Couples may jointly own their home. There are two different ways of jointly owning a home. These are beneficial joint tenancies and tenancies in common.

If the partners were beneficial joint tenants at the time of the death, when the first partner dies, the surviving partner will automatically inherit the other partner's share of the property. However, if the partners are tenants in common, the surviving partner does not automatically inherit the other person's share

So is it possible just to clarify what legal ownership actually means as anyone reading the above, perhaps, wouldn't understand about the legal ownership side or what implications it has?

Easiest way to describe the difference between legal and beneficial ownerships is to th8nk of them as material and monetary 
We register the legal ownership so the land and what’s built on it. You can’t split that so each has half the bricks/mortar, half a kitchen and land for example
The beneficial ownership is the monetary value of the land and buildings. So £s and pence. That can be split as half say of £200K is a £100K each. 

chkymonky

Hi Eggbox

hope you are well. Coming back on this after very long time.

has anyone been able to remove charge without paying?

I haven’t paid anything since CO, can it be statute barred? It’s more than 10 years

TIA

eggbox

Hi chkymonky

Yes there has been several succseses included my own recently. Unfortunately, CO are exempt from being statute barred as CCJ's don't actually expire.

chkymonky

Thanks eggbox

the debt is sold to new guys

CO is with NR as of now, not transfered yet

My options?

Thanks

eggbox

What are the options to help you with?