Charging Order? The myth

eggbox

Thank u very much 
Problem is would a solicitor put the sale through of there is a co
Is there anyway a solicitor put the sale through without giving the time to creditor to respond
Or any time limits

A read through this thread (I know its long) will demonstrate that the overwhelming majority of solicitors won't help you with this matter (and that is largely through ignorance of not understanding how and why a Form K Restriction is registered), but the crucial thing is that a few  solicitors have helped. So it can be done. I've also got the details of the solicitors who helped the last person on this thread sell up, so just DM me when the time comes for their details.

Regarding the notification time, its important to refer (as the Land Registry always remind us) as to what a Restrictions terms actually are. To comply, you only need to do what's asked within the restrictions terms. A Standard Form K does not give any time limit for notifying the creditor, only that it must be done. The creditor can.therefore, be notified at the absolute last minute and, as long as the Land Registry have received proof of the notification being carried out; then that complies with a Form K Restrictions terms.

Its worth saying, however, that even when notified; most creditors don't acknowledge the notification. There's a multitude of reasons explained for that in this thread. Its also worth reminding that, should you be selling to a cash buyer, then there is nothing to stop you doing your own conveyancing (as I did) to complete the sale process. 

tksnota

@eggbox - a few more questions
 - if the sale of a property with restriction went through, can the funds just be deposited to my partner’s account as an option for joint account to avoid any chasing from the lender?
- if the buyer will be doing mortgage is that considered cash buyer? If not can the sale still happen via mortgage even with restriction?
- i assume after the sale the ccj will only happen when buying another property. If we bought another property but only use my partner as the sole owner will the ccj be still be applicable?
- my understanding if I don’t own a property and will be receiving pension then the lender will not be able to touch this fund. Is this right?

eggbox

tksnota

1. As long as the funds don't go in your, sole, account I doesn't it matters where it goes. But (and this is just saying) you need to ensure your partner is trustworthy to give him all the proceeds.

2.No, any mortgage involved is not cash. Cash is only where the buyer is paying you cash without any third party involved.

3. A CCJ is a legal judgement you owe the creditor money. They can chase that by any method they choose, no property has to be involved.

4. If your partner is the sole owner of any new property, then your CCJ couldn't be involved. But (and again I'm just saying) you would have no legal ownership of the house. So, again, you need to be sure your partner is trustworthy.

5. If you are over 55 a creditor can try to obtain money from your pension as the government now allow people over 55 to release money early.

But, as I've mentioned, a creditor rarely chases further because they are a business. Having spent money, time and effort trying to recover your debt (and having failed); they will most likely view further effort as a waste of money, time and effort. It needs to be remembered that most CO's are taken out by debt collection agencies, and who have only paid pennies in the pound to buy your debt. They will most likely, therefore, target their efforts on easier prey. 

Ruby82

eggbox said:

Thank u very much 
Problem is would a solicitor put the sale through of there is a co
Is there anyway a solicitor put the sale through without giving the time to creditor to respond
Or any time limits

A read through this thread (I know its long) will demonstrate that the overwhelming majority of solicitors won't help you with this matter (and that is largely through ignorance of not understanding how and why a Form K Restriction is registered), but the crucial thing is that a few  solicitors have helped. So it can be done. I've also got the details of the solicitors who helped the last person on this thread sell up, so just DM me when the time comes for their details.

Regarding the notification time, its important to refer (as the Land Registry always remind us) as to what a Restrictions terms actually are. To comply, you only need to do what's asked within the restrictions terms. A Standard Form K does not give any time limit for notifying the creditor, only that it must be done. The creditor can.therefore, be notified at the absolute last minute and, as long as the Land Registry have received proof of the notification being carried out; then that complies with a Form K Restrictions terms.

Its worth saying, however, that even when notified; most creditors don't acknowledge the notification. There's a multitude of reasons explained for that in this thread. Its also worth reminding that, should you be selling to a cash buyer, then there is nothing to stop you doing your own conveyancing (as I did) to complete the sale process. 

Really appreciate you taking the time to explain for the lay person
But is there anyway to stop a charging order 
RX1 forms dont stop them as am aware only u can use it to battle at court.
How can one protest their home from charging orders any idea.?

Plz can i have the Solicitors firm details.

eggbox

Ruby82

Technically, yes as you can attend the Charging Order hearing to put your case against the registration being made. But, in reality, no you casn't as Judges always seem to allow the registration. The reason usually given for this is because if the creditor does try to obtain an Order For Sale to force you to sell your property to recover their debt (which a Charging Order gives the creditor the right to pursue); then Judges have absolute discretion over whether to grant the Order For Sale or not.

In reality, Judges only grant an OFS in extreme cases (the last time I looked it was less than 5 in every 1000 applications) and they certainly wouldn't do so where a family home is concerned, and the loan is also for a credit card or loan debt. So granting the Charging Order only really gives the creditor the option of getting paid for the debt, when you decide to sell the property. 

The weak link for the creditor, however, is when jointly owned property is involved and only one person owes the debt. I've sent the details requested by PM.  

tksnota

eggbox said:

tksnota

1. As long as the funds don't go in your, sole, account I doesn't it matters where it goes. But (and this is just saying) you need to ensure your partner is trustworthy to give him all the proceeds.

2.No, any mortgage involved is not cash. Cash is only where the buyer is paying you cash without any third party involved.

3. A CCJ is a legal judgement you owe the creditor money. They can chase that by any method they choose, no property has to be involved.

4. If your partner is the sole owner of any new property, then your CCJ couldn't be involved. But (and again I'm just saying) you would have no legal ownership of the house. So, again, you need to be sure your partner is trustworthy.

5. If you are over 55 a creditor can try to obtain money from your pension as the government now allow people over 55 to release money early.

But, as I've mentioned, a creditor rarely chases further because they are a business. Having spent money, time and effort trying to recover your debt (and having failed); they will most likely view further effort as a waste of money, time and effort. It needs to be remembered that most CO's are taken out by debt collection agencies, and who have only paid pennies in the pound to buy your debt. They will most likely, therefore, target their efforts on easier prey. 

Thanks again. Regards Item 2, if the buyer was approved a mortgage to pay my property then it eventually become a cash buyer…is this the case? If not, will the sale still progress with an approved mortgage from the buyer and a restriction in place on my property?

eggbox

tksota

For clarity, cash is money coming directly from the buyer. And who doesn't need  approval from elsewhere to spend the money.

Approval for a mortgage means that the mortgage company have approved the loan to the customer to buy the property. However, what you will most likely find is that the solicitor acting for the buyer, will most likely insist that the restriction is removed prior to the sale proceeding as a condition of the mortgage.

This is where you need your solicitor to do their job and explain how the restriction will be cancelled after the sale in these circumstances.

Farnsy

I’ve a long standing (10 year) Charging order and on my home and a CCJ (that makes no difference, I can get credit easily) the debt is now owned by Mortimer Clarke ME111 whatever that means.
It was for a 3k credit card balance that I was struggling to pay.
Hillesden securities initially took me to court at a time when my mother and sister were dying of cancer and a business sale went s**t shape due to a solicitors error that cost me thousands.
I hate these debt collectors, how they purchase debts and create misery
So …… i received a CCJ and Charging order and was ordered to pay them £2 month that I’ve done since, tbh I could pay it off but what’s the point ? I’d rather pay more not to pay it, I now see that it should maybe have been a restriction not a C order.
MC do constantly call me, they leave messages because they are blocked, send letters asking for balance, they won’t accept a lower offer 🤷🏻
So I’ll keep dragging it on, they’ll probably get it eventually when 3k is worth £100 in todays money as it dosent incur interest.
what I want to know is ….. can they actually do anything about this now, I presume they just have to keep waiting, I’d  even consider gifting the house to my son or wife, I’ve no mortgage now.

Thank you 

eggbox

A Restriction has to registered when there are joint owners but only one owner owns the debt. If you owned the house, solely, then the CO can be registered on the deeds as an equitable charge. But the deeds will show you what was registered. In, either, case however "gifting" your house won't remove the CO or Restriction.

Mortimer Clarke are bog standard solicitor/debt collection company, and whilst they, technically, have options of further enfocement; there is almost zero chance they will do anything further. The debt is still showing on their balance sheet and that's all some company's want in these cases.

Farnsy

The house was then and now jointly owned, wish I’d got my senses about me when all this kicked off it was the worst period in my life so far: