Charging Order? The myth

ExploreYourAbility

Firstly would like to thank eggbox and land registry for this thread and helping others understand their circumstances.

My short story I am a Mortgage Prisioner, I am a sole owner of my property and self employed.

Before finding out I was a prisioner, I enetered a DWP, they then organised an IVA which got turned down. I seeked advice from an IP and he quoted how much to get me out of the mess, was an amount I could not afford. I decided to pull away from them and that's how I got into the mess with Final Charging Orders.

I will not go into details about being a prisioner. However I am thinking of selling as there is equity in the property, I would not come out with much due to Final Charging Orders but I will not be buying another property. If I stay as a prisioner the fact is I have 6 years left and no way can afford to pay mortgage off, so they will repossess and I would be homeless.
I have put in for a claim against my mortgage lender, which is being dealt with by top solicitors working on behalf of mortgage prisioners and I may get compensation but don't have any expectations.

Thank you eggbox as I found the thread where you stated:

If the debts are CCA (Consumer Credit Agreement) regulated such as bank loans or credit cards then adding statutory interest isn't allowed. Nor if the debt is unregulated but under £5k.Therefore, the DCA's can't add any costs or interest to the Charging Order amount owed.

My questions are:

1. Do I add up the amount owed on the Final Charging order minus any charges and interest and that is what will be due? I don't want to contact the DC's as we all know their vulture type tatics and can say whatever they like.

2. As has been posted that the conveyancers don't appear to understand the rules when getting the orders removed from the registry. Surely if I can't find one that does understand and I state the Consumer Credit Agrrement they will pay just what is initially owed and the orders will be removed?

I have searched through the posts and if any one has found a conveyancer that does understand, I would truely be grateful if you can pm me.

I am not a poor owe me woman, as I feel for people who are worst off than me. However it is what it is and I have 23 years of memories to carry forward with me in the future.

I have a potential cash buyer coming to see me this weekend (not one of those doggy companies, I know the person)

So any guidance on my above questions would be well appreciated.

eggbox

EYA

To offer some help can I ask you to clarify what the "charges and interest" you are referring to in point 1, and what "rules" you are referring to in point 2?

It would also help advise on your options if you could let us know how much your house is currently valued at and what is the total amount owing for the Charging Orders?

ExploreYourAbility

Eggbox - Thank you for getting back to me.

I am confused and apologies if my questions not make sense.

Point 1. - The particular Order I am asking about is as follows:

The application for a charging order stated The Judgement or order require the judgment debtor to pay £20,598.31 (including any costs and interest). The amount now owing is £20,582.09 then in brackets which has been crossed out (which includes further interest payable on judgement debt.)

The Final Order says owe £20,598.31 under a judgement or order given on 31 October 2006 together with any further interest becoming due and £205.00 the costs of application.

I remember ringing their solicitors at the time and she actually laughed at me and said you do know we are going to charge you 8% every year until you pay this off. Hence me saying don't want to ring them.

I am not trying to get out of paying them I am just confused.

Point 2 - This was to do with a post I saw about paying creditors on sale of property. I have another Final Order where the DC is sending me letters to offer a discount. 40% owe £17,805.59 saying pay £10,683.36 and they will write-off the remaiming £7,122.23. Would the conveyancer do a deal with them or pay the full amount.

Apologise that I didn't state all this before.

The property is worth £ 320,000.00
Mortgage owed: £176,000.00
Charging Orders: £73,000.00

Thats why I stated would not come out with much but I just want to start a new life.

If the guy over the weekend isn't interested then I was thinking of putting it up on the market.

Look forward to your reply

eggbox

EYA

I was just trying to ascertain if the creditor had applied for interest on the Judgement (which many unscrupulous DCA's do) however, it looks like they haven't done so. So the amount will be fix0ed under the Court order. Your "laughing solicitor" will, undoubtedly, be some underling knobhead who doesn't know the Law and not an actual solicitor. If it does, however, turn out they did iclaim interest it can be challenged and overturned so don't worry about that for now.

Regarding the discount offer you have had sent to you, this will only likely be accepted if you are prepared to pay it outside of selling the house so be careful here. This is because if they get wind you are selling the house they will know they don't need to do anything and they will receive the full amount. So don't ever mention your selling the house as the offer is made as you're NOT selling the house (as they're not getting any money now.) My advice on this would be to negotiate a discount on the basis you will start a monthly repayment plan with them.

Explain you have no chance of raising the whole amount but if they negotiate a lower amount owed, through a monthly repayment plan, it will help you to sell up and move to smaller premises quicker, whereby the negotiated debt will be repaid quicker upon sale of the property (whether that's true or not don't worry.) The most important thing to remember if you are succesful in negotiating a debt is to get a WRITTEN agreement that the lower amount owed is being accepted as a FULL and FINAL settlement of the debt.

One more question if I can, what is your monthly moretgage repayment and when is the mortgage due to end?







 

ExploreYourAbility

Bless you I was not expecting an answer from you this evening.

I will read again tomorrow what you have written, just so that I totally understand. (Couple of wines and tired)

In reagrds to your last question, I thought I was one of the lucky 250,000 people trapped. The mortgage company I am with did start to offer deals not like others who are on closed books. If you get what I mean.

I am on Interest Only 4.14% and pay £605.94 a month & have 6 years and 1 month left from the 30th April 2021.

I used the mortage company's calculator if I took their deal, which by the way they offer no advice it is my choice wether I took it up. My payments would go up to a staggering £ 3,500 roughly a month.

As said self employed and covid hit my business bad but luckly did manage to get goverment grants.

I have decided to go with my intution and it is time to move on. As the saying goes "Your never to old to start a new journey"

Thank you for your support and how you support others.

Kind Regards
EYA

eggbox

EYA

You say you have 6 years left on the mortgage is this when the interest only mortgage ends? 

Also, are you paying any creditors who have (or don't have) Charging Orders?

ExploreYourAbility

Eggbox

Yes that is correct  - The term remaining on loan is 6 years, 1 Month at 30th April 2021 
Information from April 2021 statement.

No I am not paying any other creditors that have charging orders.

As stated before a single woman running a very small business.

eggbox

EYA

Well the first thing I would advise, if you say you can't get out of the mortgage deal, is to to stay put for at least the next 5 years. This is because if you sell up you will, undoubtedly, struggle to get a mortgage (as I'm presuming your CCJ's were received within the last 6 years) and you are  unlikely to find an affordable property with the £70 odd grand of equity that would be released from an immediate sale.

You would also be paying far higher rent than the £600 interest only mortgage you are currently paying as rent prices are at sky high rates. So if you stay put for around five years it will allow a couple things to happen that should benefit you.

The first benefit is you still get several more years of paying the, relatively, low mortgage repayment you currently pay. Hopefully your business will pick up as things are, gradually, getting back to normal and this should allow you to put some money aside for when you do, eventually, have to sell up and leave,

The second benefit is that your house will increase in value whilst your mortgage amount owed, and also the CO amounts owed, will remain the same. So this will give you increased equity when you put the house up for sale in five years (which still gives you over a year to find a buyer.)

This is certainly what I would do in your position but, as I always say to posters; any decision must be made by yourself as its you who are affected by the any decision made.
 

ExploreYourAbility

Morning Eggbox

Thank you so much for your advise, I understand what you are saying.

You have put my mind at ease as to the interest on the Charging Order and I have to as you say make my own decision.

Thank you again. Take Care

jmsc3511

Hello - Can you help me with my some advice re paying off debts that are secured on my house in order to do a transfer of equity. In summary there are two form K restrictions from my ex-H's debts which I'm aware I don't have to pay when I sell the house (but he is still liable for the debt). As part of our divorce I have a consent order giving me the beneficial interest in the property, but he is still on the title deeds (as neither of us could pay off those debts then in order to do the title transfer). In order to do a transfer of equity now I understand that would have to pay off those debts. My question is regarding the 8% interest that is listed on the court paperwork (the debts are about 10 years old). I've briefly read on this forum that that may not be correct depending on the original credit agreement, is that right? How do I found out what consumer credit agreement would be in place for the original debts? And how do I argue for not paying 8% in order to clear the debt and have the restriction removed so I can do a title transfer?
Thank you.