Charging Order? The myth

eggbox

https://forums.moneysavingexpert.com/discussion/comment/81957476#Comment_81957476

You're largely right but for other people reading this; it should be understood that a creditor with a Charging Order does have the right to apply for an Order for Sale on, either, a solely owned or jointly owned property.

Any agreement from the non debtor who jointly owns the property is not required as the Law gives them no say on this matter.

However, it should also be understood that Orders for Sale are rarely sought by creditors (especially for consumer debts) as they know its virtually impossible to get a Judge to grant them as they are almost always family homes.

tksnota

I this scenario Partner 1: Has CCJs; Partner 2: Has No CCJ; Both owned a mortgage property; currently have Form K restrictions

Question 1. What is an equitable restriction? Is it enforceable when the property has no mortgage and both Partner 1 & Partner 2 owned the property? Will they need to get paid before or after acquiring the property? Will they need to be paid when selling the property?

Question 2. If the mortgage property has been fully paid, can the Form K restrictions be converted to equitable?

Question 3. If Partner 2 just owned the new mortgage free property under his/her name and Partner 1 lived there and used it for all his/her correspondences, will any restrictions be applied?

Question 4. Aside from equitable restriction, will the there any other or different ones be applied for co-owned property without any mortgage?

Thanks…tksnota…

timbucks

This thread has been very helpful. I have some restrictions on our jointly owned property that the buyers conveyancers want to know how I plan to overreach them. I thought it was just going to be from proceeds of sale on completion date but it looks like it's simpler than that and I'll just talk to the beneficiaries after the sale has gone through as one of them is being paid off, but the other two I can't remember seeing any communication from them for many years, so hopefully can get a reduction on the amount due. The one I'm paying off said no to a reduced offer as they say the amount will have to be paid on sale of the property, which appears not to be the case now.

This is the restriction (same text apart from company, date) for each of them

(27.09.2012) RESTRICTION: No disposition of the registered estate,
other than a disposition by the proprietor of any registered charge
registered before the entry of this restriction, is to be registered
without a certificate signed by the applicant for registration or their
conveyancer that written notice of the disposition was given to finance company at address, being the person with the benefit of an interim charging
order on the beneficial interest of me made by the court 2012 (Court reference ———-).

We've cleared the mortgage so that is the disposition of the registered charge part anyway done by the bank so the restriction seems to be of the same form as at the start of this thread

My main question is (and apologies if it has been answered somewhere in these 519 pages) what form does the letter/certificate have to take and what form does the buyers conveyancer have to send to LR after completion? We're using the same conveyancer as the buyer so they should be able to do that easily.

Thanks for any help.

1footinthegrave

1footinthegrave  23 May at 4:54PM

My husband died in 2025 and left everthing (he actually had only his pension no other assets apart from our home) to me in his will, I was the only beneficiary and also executor. I enquired on getting a lifetime mortgage as I now need the money released from the property to live out my days on, only to find that there are two restrictions in my late husband’s name, so I can not get a lifetime mortgage without the restrictions being removed. Also it seems that on the LR our home is now listed as tenants in common due to the restriction. I paid off our original mortgage in full with my own money from an inheritance back in 2020 so I am now wishing I hadn’t done that. Is there anyway that I can get the restrictions removed since the debts are not and never epwere mine. Also I don’t want to move as the property was bought as our final move and is only a small flat.