Charging Order? The myth

eggbox

kimbogriff

Thanks for confirming. Unfortunately, I'll have to defer to Land Registry Rep on whether you can still transfer your property, without paying the CO debt off first, as you have an "equitable" charge registered. You have this registered, instead of a restriction, as you are a "sole" owner (and not a joint owner)

An Equitable charge is similar to a mortgage charge, and would have to paid off if you were selling to a third party before the change of details could be registered. So, hopefully, LRR may be able to clarify this one?

Land_Registry

eggbox said:

kimbogriff

Thanks for confirming. Unfortunately, I'll have to defer to Land Registry Rep on whether you can still transfer your property, without paying the CO debt off first, as you have an "equitable" charge registered. You have this registered, instead of a restriction, as you are a "sole" owner (and not a joint owner)

An Equitable charge is similar to a mortgage charge, and would have to paid off if you were selling to a third party before the change of details could be registered. So, hopefully, LRR may be able to clarify this one?

Correct - whilst a sale/purchase can complete with an equitable (noted) charge on the register if the buyer/lender do the right searches and are aware they are not going to complete without it being cleared.
In many ways the process will be the same as if there was a seller's mortgage (registered charge) on the title and the buyer would need the seller's undertaking to discharge the charge which can then be relied upon 

timdavid010

This is an incredibly valuable clarification—many homeowners may not realize the significant difference between a Charging Order and a Restriction when it comes to jointly owned property.

The key takeaway here is that a Restriction does NOT prevent the sale of your property, nor does it legally require you to pay the creditor from the sale proceeds. This is critical for those who have been misled into believing they are "stuck" due to a supposed Charging Order.

For Northern Rock customers and anyone else affected, this means you may have more financial flexibility than you thought. Always double-check with a knowledgeable solicitor who understands this distinction before making any financial decisions.

A great post that sheds light on a commonly misunderstood legal issue—thanks for sharing!

PanPen

Can anyone message me with a recommendation of a solicitor who is sufficiently knowledgeable and prepared to deal with sales where the debt isn't cleared on completion.

I'd rather move them try and renegotiate with my charging orders as two were statute barred at the time it seems. 

eggbox

Hi Pan Pen

I always recommend you contact posters on this thread who've been successful, and message them to see who they used for their conveyancing.

Can I ask what the circumstances are of why you believe the debts were statute barred, please?

PanPen

@eggbox I've recently discovered them on my LR, it seems they stem from around 2015 and at least one of them I'd last paid anything in 2008.

tksnota

Assuming I can’t find any conveyancer which is the case for more than a year, is there a way of paying restrictions after they being lodged against the property for several years?

Or do I need to sort out the CCJs (if that’s possible) first before  fixing the restrictions?

I plan to settle the restrictions before I start any sale 

Thanks…tksnota 

eggbox

tksnota

Sorry to hear you've had no luck finding a conveyancer, yet, but keep trying as they are out there, somewhere.

A Restriction registered on your deeds is a notification that a Charging Order has been made on one of the owners. The Charging Order, when granted by the Court, will have had an amount that was due to the creditor; it's this amount that would need to be settled to remove any Restriction prior to any sale.

tksnota

@eggbox - do I need to pay equivo (law firm) or the owner of the debts because it was the former who filed the restrictions?

eggbox

It should be whoever is named on the Restriction