Charging Order? The myth

KathrynConfused

Thank you so much both. Yes, we are going around in circles with this. What exactly are we supposed to settle?!! We will proceed with the removal/cancellation paperwork ourselves and just tell our solicitor that's what we're doing. Thanks again!

eggbox

KathrynConfused

You should also ask query with your soliciotor why you've had to resort to an internet board that provides free advice, when his paid for advice has resolved nothing? Would love to know their response!

stillkicking

Hi Everyone, I’ve just had the other parties solicitors saying they won’t exchange with a restriction form K on. The have been Informed by the solicitors it is not a charging order and will not be required to be paid off prior. 

What are my options now if the other party want it removing prior to exchange? 

Any information will be appreciated.

KathrynConfused

eggbox said:

KathrynConfused

You should also ask query with your soliciotor why you've had to resort to an internet board that provides free advice, when his paid for advice has resolved nothing? Would love to know their response!

You have no idea how tempted I am to do that!

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stillkicking said:

Hi Everyone, I’ve just had the other parties solicitors saying they won’t exchange with a restriction form K on. The have been Informed by the solicitors it is not a charging order and will not be required to be paid off prior. 

What are my options now if the other party want it removing prior to exchange? 

Any information will be appreciated.

There isn't much you can do unless your solicitor explains everything in detail as the solicitor believes he is protecting his client.

However, what some other posters have done to get round the problem is the following; firstly, they get their solicitor to explain to the buyers solicitor why the restriction only needs to be complied with to allow the sale to proceed and, further, that it will then be removed upon sale due to overreaching.

The use of the Land Registry Practice guides will confirm this and, if required, the Land Registry itself. However, as a protection to their client, you agree to them holding back the Charging Order amount until their clients details are updated on the deeds and they can see the restriction is removed.

eggbox

I've mentioned this film before, however, "Inside Job" is now showing on Netflix. Narrated by Matt Damon, the documentary brilliantly exposes just why everything went wonky in the banking world that created the 2008 crash. It will leave you open mouthed at just how irresponsible and culpable the banking institutions were in creating the financial hardship and which led to many, many people desperately searching for help on this thread. More shockingly, it demonstrates how those responsible got away, scott free, from the mess they created.

Also check out "The Big Short" when you can which entertainingly dramatises what happened to really good effect with a brilliant perfomance by Steve Carrell. 

Steve7811

For those that have been following my posts we are still no further getting this resolved! Our mortgage finishes on the 1st January 2022 and Lloyds have only just replied to my letter of the 24th August! They have ignored the question about giving permission and have just said " the balance on the account is £16079 and this can be paid by BACS or cheque". They know we do not have that kind of money, and they know that without their approval we cannot extend the mortgage! I think they are waiting for the house to be re-possessed and then they will get their money! I am looking for other lenders who will take on the mortgage with the second charge but I am not hopeful.

eggbox

Hi Steve, you need to ensure you speak to someone in person at Lloyds. This may have to be on the phone due to current restrictions, but ensure it's someone quite high up the food chain to ensure they are fully aware of the situation and which you class as urgent as your home is in danger of being repossessed? 

You could also apply elsewhere for a "secured" loan from companies like Ocean and Norton etc (there's loads) if the amount owed is only £16k. These loans are like a mortgage as they are secured on your property, however, the lenders understand they won't be the main charge holder and will only be concerned about you having enough equity in the property to cover loan (for their security)

Their rates will be higher than a mortgage but not that high as the loan is secured. But it will be worth it if it helps you avaoid repossession and Lloyds aren't helping?

Steve7811

Thanks for that, I thought I posted a reply to your comment but it does not appear! I did spend over 30 minutes on the phone to Lloyds Collections, who were unable to help as it was under the control of Legal, who will not talk to me! The problem with applying for a secured loan is that becomes a charge on the property, and lenders will only lend if they are the second charge, not the third! I have written to Santander asking for another review of the case and asking why they need Lloyds to give permission when they are the first chargee? I have also written to the CEO of Lloyds, complaining about the fact that it took so long to answer the letter and they are basically forcing us to be repossessed and will not negotiate. The annoying thing is the house is worth 6 times the mortgage and we could pay Lloyds, but I would rather put that money into the mortgage than into the hands of those bloodsuckers from Lloyds!

eggbox

Firstly, if Legal won't talk to you then you need to have a word with the Financial Ombudsman (but you need to explain to Lloyds that is the step you will be taking if they don't respond.)

And it may be the case that some lenders insist on being no more than the second charge holder, but that won't be applicable to all lenders as it doesn't make financial sense. For instance, its more secure to be the third in line when your debtor has 6 times the loan amount in equity than it does to be second with only twice the amount of equity. Your quickest way to find a lender will be to use a broker so I'd give that a whirl.