Charging Order? The myth

Land_Registry

eggbox said:

Land Registry Rep

Regarding the above, what would be the LR view if the creditor failed to respond to your letters?

In general terms if we receive a completed application form and our wider checks don't elicit a response from the named beneficiary, then we would complete the application and update the register by removing the caution

tksnota

Hi

Is it possible to remortgage on the same or different lender if there is a restriction on the property but CCJs and Defaults are gone from one’s credit report?

//NT

eggbox

It's usually only possible with the same lender. This is because they will already have the first charge (by date) registered on the deeds. Any new lender would require the Restriction to be removed in order to have their lending as the first charge 

mouse_mickey

Good afternoon, I have read through this thread with interest.  Hoping that someone may be able to assist with the query I have.  I had a restriction placed based on interim CO (guessing it was a restriction as the property is jointly-owned), and that has now been complied with by providing the relevant notice.  They are now trying to get the restriction re-added before the house sale completes presumably with wording saying that the creditor needs to consent.  Is this even possible?  The charging order is probably over 10 years old.

eggbox

I would have thought not, simply because complying with a Restriction doesn't remove the Restriction from the deeds. 

Whether they can amend the Restriction at this stage, however, will probably need Land Registry Rep to clarify.

But can I ask what's triggered them trying to see if the Restriction can be re-added?

mouse_mickey

Hi eggbox, my assumption is that they have received notice of disposition and they have now realised that the non-standard wording doesn't guarantee them any funds from the sale, so they are looking at what they can do in the short time available to remedy this.

eggbox

I'm not saying you're wrong, but that action is certainly a first as far as I've heard? Can I ask how you came to know about this happening or what you've received to notify you of the action?

mouse_mickey

Just from speaking to my conveyancing solicitor.  Said that they were looking at ways to enforce the charging order (but as I mentioned it was only down as a restriction to notify).  I may have misunderstood, but it was mentioned trying to get another restriction on the property to stop the sale taking place without the CO being settled.  I am paying the debt in instalments as agreed by the court, but I was just trying to understand whether there was any way they could enforce the charging order if I didn't agree to it.

eggbox

I could be wrong, but it sounds as though there could be a bit of misinformation coming across from your solicitor? Especially, as in the overwhelming majority of cases, creditors get paid when debtors have restrictions on properties. So I'm wondering how, or why, it is they think they're not going to get paid on this one?

mouse_mickey

This is a long drawn out saga over a decade old.  At the moment, the restriction has been complied with, and if there is no obligation to pay, I want to sell the property and continue to pay in line with the agreed court order.  If there ultimately is an obligation to pay, we will unfortunately have to withdraw from the property sale because it will put us in a bigger hole than it is getting us out of.