Charging Order? The myth

tksnota

If me and my wife have separate restrictions on our house on separate and different lenders will it be

1. Can the restrictions converted to final charging order
2. if the above is not possible, can sell the property using a conveyancer that understands about payment on restrictions?
 

Thanks…

Land_Registry

tksnota said:

If me and my wife have separate restrictions on our house on separate and different lenders will it be

1. Can the restrictions converted to final charging order
2. if the above is not possible, can sell the property using a conveyancer that understands about payment on restrictions?
 

Thanks…

Restrictions aren't converted to final charging orders. If a creditor obtains a charging order against one of joint registered owners then they can register a form K restriction to protect their interest.
See PG 76 and it's Algorithms 1 and 2 for guidance - Charging orders (PG76) - GOV.UK
Whether it's an interim or final charging order matters not from a registration perspective as they are the same interest (debt effectively)
This thread explains how form K restrictions can be overreached when a property is sold/purchased and PG 76 explains that in section 4

fatbelly

tksnota said:

Can i sell the property using a conveyancer that understands about payment on restrictions?
 

Thanks…

Yes you can, if you can find one.

eggbox

tksnota

To add to what Land Registry Rep has explained, an interim Charging Order is what a creditor will apply for in the first instance, as it allows the creditor to gain the ability to immediately to be able to place a restriction on the debtors property deeds.

They do this as it is stops the debtor from being able to sell the property without complying with the restrictions terms, before a Final Charging Order hearing can be heard. But as LRR points out, the same restriction will be registered on the property deeds whether the Charging Order is an interim one, or a full and final one. 

Because of this, many creditors (especially creditors who have purchased the debt from the original creditor) won't bother to pursue a full and final order as it only costs more time and money, without any extra benefit.

So, you will be able to pursue selling your house as explained on this thread, whether the CO is an interim one or a full and final order.

kimbogriff

I have an interim charge order. Which the debt was sold to cabot I offered a settlement lump sum but they declined. My plans was always to transfer it to my daughter once my mortgage was paid. So am I able to still do this ? 

kimbogriff

I have an interim charge order. Which the debt was sold to cabot I offered a settlement lump sum but they declined. My plans was always to transfer it to my daughter once my mortgage was paid. So am I able to still do this ? 

eggbox

You should be able to still transfer the property into your daughters name (Land Registry Rep will, hopefully, confirm), however, the restriction on the deeds wouldn't be removed though the ownership just being transferred. A restriction being removed (as explained on this thread) would only be cancelled if a sale has been made for "valuable consideration".

This usually means for the exchange of pound notes, but it can also be, for example, in consideration of a monetary debt owed to the seller.

kimbogriff

eggbox said:

You should be able to still transfer the property into your daughters name (Land Registry Rep will, hopefully, confirm), however, the restriction on the deeds wouldn't be removed though the ownership just being transferred. A restriction being removed (as explained on this thread) would only be cancelled if a sale has been made for "valuable consideration".

This usually means for the exchange of pound notes, but it can also be, for example, in consideration of a monetary debt owed to the seller.

It’s a interim charge so I understand there isn’t any restrictions regarding this 

eggbox

kimbogriff

If you read the post by tksnota (above your first post) you will see why an interim charge is sought, in the first instance, by a creditor and why (usually)  a restriction is registered. So it would help if you could confirm what is registered on your deeds notifying the Interim Charging Order; and also whether you currently own the property solely, or with a another joint owner?

kimbogriff

eggbox said:

kimbogriff

If you read the post by tksnota (above your first post) you will see why an interim charge is sought, in the first instance, by a creditor and why (usually)  a restriction is registered. So it would help if you could confirm what is registered on your deeds notifying the Interim Charging Order; and also whether you currently own the property solely, or with a another joint owner?

Yes I own it solely. Only the interim order. Doesn’t state any restrictions its been on there since 2018