Charging Order? The myth

hair_

Hi can somebody help me , I have just started the process of a remortgage , I have 2 charging orders on property from 2005 I paid them both off in full 2 weeks ago , how soon will they come off the land register o got a copy this morning and they are still on there ? Thanks

Land_Registry

hair_ said:

Hi can somebody help me , I have just started the process of a remortgage , I have 2 charging orders on property from 2005 I paid them both off in full 2 weeks ago , how soon will they come off the land register o got a copy this morning and they are still on there ? Thanks

Has an application been made to remove them? 

Once it has then you’d need to request expedition to hasten the process 
https://www.gov.uk/guidance/request-an-expedite

hair_

Hi I received a letter from the debtors to say thanks for payment we can confirm that we are arranging for the appropriate discharge documents to be sent to the land registry. Is there a certain form I need to fill in ? Thanks 

Land_Registry

hair_ said:

Hi I received a letter from the debtors to say thanks for payment we can confirm that we are arranging for the appropriate discharge documents to be sent to the land registry. Is there a certain form I need to fill in ? Thanks 

No as they are applying 

in0125

EUREKA.. I just got an email from my solicitior.. They have finally seen the light that the restriction does not need removing, and got the buyers solicitor on board as well...

Dear Mr ........,

I emailed the buyer's solicitors reiterating that (as per Land Registry Practice Guide 76) the Land Registry will cancel a Form K restriction on a transfer for value without application provided the terms of the restriction have been complied with.

The buyer's solicitors will need to lodge a certificate of compliance with their normal application for registration following completion.

The restriction simply requires that notice be given to Bank of Scotland.

The latest from the buyer's solicitors is that they appear to be accepting this provided that we can undertake with them that we have written to Bank of Scotland as required by the restriction and that we will assist them with any queries raised by Land Registry in relation to this - a) written notice has been given, and b) we can assist them with the Land Registry queries as required, so neither of these requests pose a problem.

Kind regards,

eggbox

in0125

Good to hear your solicitor is helping at last! Please explain to them if they are interested in helping others in the same boat, it should be a useful source of income given others solicitors reluctance to help.

JamesCH1982

Hi All - I'm a buyer and today is completion or bust day for me. The property has a form K attached, applied by the council who have a final charging order (although this isn't referenced on the title) This forum has been invaluable and I have experienced many of the issues covered in this thread in trying to get solicitors to deal with it.

My question is, as a buyer is there ever anyway the outstanding amount can be become my responsibility to pay? Everything I have read here and elsewhere tells me no it can't, but the solicitor is telling me it could. This restriction is just about notifying the council about the sale.

I have instructed the solicitor to proceed anyway - have I made a monumental error?

eggbox

As long as it's a standard Form K and the terms of the Restriction have been complied with then, no, the debt won't be allowed to stay on the register as the Restriction will become overreached and automatically cancelled. If you haven't done this already, the good news is you can still do it as there is no time requirement.

in0125

Not legal advice just my understanding

see practice guide 76 paragraph 4. it explains once the restriction has been complied with ( written notice of sale given)

 The clients interest in the debt has come to an end. Assuming its  a Form K as eggbox mentioned:

We will automatically cancel the Form K restriction once it has been complied with on registering a transfer of the registered estate for valuable consideration (except where the transfer is to one, or more, of the existing proprietors). We will assume that if the debt secured by the charging order has not been paid, your client’s interest will have come to an end with the postponement of the charged beneficial interest under section 29 of the Land Registration Act 2002.

JamesCH1982

Thank you for confirming - I have instructed my solicitor to follow the terms of the restriction - so I expect him to and will hopefully have some recourse if he doesn't. Thanks Again