Charging Order? The myth

eggbox

housebuyer143 said:

Waterside123 said:

Hi looking at all the information what would stop anyone from gifting there house to another family member changing ownership on land registry so removing the restriction leaving it for several months then changing it back by following the same process

You can't do this. You need to sell it for market value and can't just get around the charges by changing the names to another family member. A genuine sale is likely the only way to remove these. 

You're correct that gifting a house won't remove the restrictions, but there is also no legal requirement to sell for "market value". The requirement to remove the restrictions is that the property is sold for "valuable consideration", this means you can sell the property for  debt owed. Furthermore, whatever you "agree" to sell the house for is not verified by the Land Registry. 

eggbox

shomk
As far as the creditor is concerned, they have full value of the debt secured on your property, so why would they accept less? The CCJ they secured against your ex, gave them the right to enforce the debt and the Charging Order they secured (which the restriction notifies) is a result of that. But with the CO secured, its rare creditors do anything else after an initial period of trying to "scare" you into paying up. That is because whilst they have the right to ask a Court to enforce the sale of your house (order for sale) to repay their debt; the chances of the Court granting their wish is astranomically small and they know that. That's why many people have CO left on their property for donkeys years. But if you've agreed to clear your husbands debts as part of your settlement, then the only way I can see your debtor budging on the amount, is if you explain their debt is going to be reduced, in real terms, as you aren't going to be selling anytime soon. This is assuming your ex's debt is for a loan or credit card, which doesn't attract interest. So, whilst they may have a debt secured for £10k, the 10k value in 10 or 20 years time is going to be worth far less in real terms given inflation is fairly high at the moment. I wouldn't hold your breath on this approach, but its most likely your only hope as you've, unfortunately, put yourself over a barrel agreeing your ex will be debt free. Unless you can negotiate that its going to be a difficult one.  

blyth_2

Hi, I wonder if anyone can help or advise me. In 2009 a charging order/restriction of an unsecured debit of my husband’s was placed on our property.
Sadly he died in 2013, this means I own the house outright in my name. In 2019 I had his name removed from the deeds, but noticed the restriction in his still remains on the deeds. I am in the process of selling my house. AmI right in thinking that the restriction in my late husbands name will we taken off automatically as he is dead some 10 years now, and I will not be responsible for paying his debt from the sale of my house?

blyth_2

Further to my message above, as my late husband is dead (obviously) the solicitor says either she or I need to contact Hillsdown Security to have the restriction lifted in advance of the sale of my house.

When he died he left no money to clear his  debts and the house which was in joint names automatically became solely mine. So as far as I understand Hillsdown Security can not take any money from the sale or expect me to clear his debt.
Has anyone got any information about this that I may find useful please?

Land_Registry

Form K restrictions can be automatically cancelled as per PG 76 section 4 and that’s what your conveyancer should be referring to alongside their own legal understanding. It’s quite clear re guidance re automatic cancellation. 
PG 76 is all the guidance we can offer but hopefully others on here maybe able to share own experiences with you. 

blyth_2

Please has anyone got any advice to help me.
Mortimer Clarke are insisting that the only way they will remove a restriction on my property is if I pay my late husbands debt. They went for a full charging order but could only register it on the property as a restriction. This was back in 2009, my husband died in 2013. 
The debt isn’t mine, it was my husband’s in his name only.
The property was jointly owned, but became mine on his death and it is now only my name on the deeds since 2020
Help please 🙏 

Tiglet2

blyth_2 said:

Please has anyone got any advice to help me.
Mortimer Clarke are insisting that the only way they will remove a restriction on my property is if I pay my late husbands debt. They went for a full charging order but could only register it on the property as a restriction. This was back in 2009, my husband died in 2013. 
The debt isn’t mine, it was my husband’s in his name only.
The property was jointly owned, but became mine on his death and it is now only my name on the deeds since 2020
Help please 🙏 

@blyth_2
If you start your own thread on the House Buying & Selling forum, you are likely to receive more responses from experienced posters, including some solicitors and other paralegal people.  This thread dates back a long time and is about removing Charging Orders on the title, rather than restrictions.

blyth_2

Thank you Tiglet2
Mortimer Clarke are saying it’s a full charging order, but could be registered as such because the property was jointly owned and the debt wasn’t both of ours 

blyth_2

@Tiglet2 , I am fairly new to posting on here, how do I start my own thread?

fatbelly

Tiglet2 said:

@blyth_2
If you start your own thread on the House Buying & Selling forum, you are likely to receive more responses from experienced posters, including some solicitors and other paralegal people.  This thread dates back a long time and is about removing Charging Orders on the title, rather than restrictions.

This thread is exactly about restrictions and both @eggbox and @Land_Registry are very experienced in precisely that topic. Both are still active