Charging Order? The myth

Fathertobe

Hi eggbox I've been reading theses posts for awhile now as I've always felt that i would no doubt find myself in this situation and surprise surpise I have!!!!!!
So over 3 years ago I split from my wife we both moved out house went on the market but didnt sell for well over a year I was the only person paying the mortgage so it got to the stage where I brought her out went to a solicitor got something written up and brought her interest out however Halifax said they would still not remove her from the mortgage as my wages alone wasn't enough credit file a mess anyway.
So 6 months ago with a new partner and a 10month old daughter we pay the mortgage and have done for over 3 years we get a letter confirming my ex wife has been decleared bankrupt afew months later a restriction is added say that the registry will state that my ex wife's share will go to her creditors yet to me she has no share she has been brought out is there anything else I can get her to sign as she said she will sign anything.
The insolvency company did state that in the contract I stated while ever her name is on the mortgage if I missed 3 consactive payments still will be untitled to half the house again so because it states that the insolvency company are saying there's still a chance she could get money so that why they did what they did but that of we were to sell today the restriction would just fall away is this true?
Sorry if this is hard to read on my iPhone

eggbox

Hi FT

Something not quite right here as to have "bought her out" your ex would have had to have her name removed from the mortgage (and house deeds) to make that fact possible? Halifax wouldn't have been able, either, to not remove her details if she had been legally "bought out". So you need to shed a bit more light on how she was "bought out" legally.

If you have legally bought your ex's interest out of the property, however, there can't be any claims by your ex's creditors on something she no longer owns.

A little more info would be helpful

Fathertobe

Sorry I'm terriable at explaining things lol but thanks for spending the time to reply.

Right house was worth £100k but owed £90k need alot of working doing to it went to the bank to remortgage to remove her name were having none of it at this time I was paying 80% of the mortgage she didn't pay a penny for over 2 years while it was on the market.

So worked hard saved, she said lets go to a solicitor get something written up I'll be happy for my name to stay on the mortgage till your in a better postion to remove it.
Spoke to Halifax said we don't care what you do as long as the mortgage is paid but be aware your ex wife will still be responsible for the mortgage if you default.
So went to a solicitor got it written up that she would give up any interest in the house and would happily sign to remove her name from the deeds but is still aware she would still be on the mortgage til I could remove it paid her £5,000 as that was half the equity she would of got from my savings and paid off the shortfall of the mortgage payments she missed.
Shortly after this she was made redundant which led to the restriction being put in place I forwarded the documents from the solicitors that she signed and the insolvency company said thats fine we will only pursue her half if you default on the mortgage as we had it stated it in the papers that if I default I'll put the house up for sale and she again gets half as of yet everything is up to date again halifax have been informed throughout
I also still speak to my ex wife and to be fair has Been more then willing to sign anything I want to get things sorted

Sorry if it all feels abit patchy feel free to ask anything thanks again

eggbox

The problem (I think!) you have is that whilst you have got a Solicitor to draw up an agreement regarding your ex's share of the property; without your ex being removed from the mortgage she won't have been removed from the deeds and would, therefore, still also be showing as a joint owner on the Land Registry (hence the Restriction was able to be placed.) She is, therefore, in the eyes of the law still a legal part owner of the property and therefore still has a "Beneficial Interest" if it were to be sold.

This would definitely be a problem if your ex were to be made bankrupt as they would come after her "legal" share of the property. It's also doubtful your Solicitors agreement would hold much weight if you have agreed that she would get half at a later date if you got into difficulties? But if you were to sell the house now to a third party then, yes, your ex's Restriction would fall away provided you employ a Solicitor who knows the law on Charging Orders.

Non_Serviam

Hi all

Can anyone please recommend a conveyancer who understands the issues discussed in this thread?

Thanks and all the best

NS

poorpet

My wife died 4months ago.Unknown to me she had many debts.Letters came in over the weeks from people who buy up debts.It also seems she had 2CCJ's which they are now saying are against the house!we were joint owners,even though I paid all bills,now we are tenants in common.All her debts were unsecured and nothing to do with me.No idea what money went on as I paid for everything.Went to CAB but they said I needed solicitor.We have a 15year son and it would break my heart to give up our home over her reckless ways.I have contacted a solicitor.Any ideas what might happen?Will I have to pay her debts which are rising with interest added.About £15000 maybe.Any advice or sympathy would be welcome.

eggbox

poorpet

Firstly, you need to check the Land Registry to see if there is anything registered against your property. CCJ's aren't registered against your property and if an any creditor did pursue their CCJ on to a Charging Order you should have been notified as a joint owner of the property.

Check that first then come back to the forum to let us know the outcome. Also, did your wife leave a will leaving her share of the property to you?

rosiesposies

Yes you can be removed from the deeds and still remain on the mortgage. It's very common in divorce financial proceedings. However it appears that although the consent order was drawn up in the above posters case, the tr1 may never have been completed however I DO think that if u have a consent order stating that x is to be removed then anything that's attempted to be registered in her name on that property AFTER the consent order was signed by the courts is not possible. Ask this question on wikivorce they are more knowledgeable abt these things over there.

poorpet

Yes there is a registration on the Land registry.Wife didn't leave a will as she was only 54yrs and had nothing but debts to leave!She died suddenly and unexpectedly.Debts may have been much worse in the future.Thank you for responding to my need for help.Didn't give enough information.When letters came after her death,I sent each one a letter saying I was not liable as debts were unsecured and hers alone.Also enclosed her death certificate.I must stress that in all the time we were together I paid for everything.She must have kept money I gave for items and put them on cards.I only knew about CCJS when told by COBOT and HFO?this is a nightmare to me as I thought debts went with her!

eggbox

Poorpet

Unfortunately your wife's debts don't just disappear because she has sadly died. But her creditors can only claim against your wife's estate so can I ask if that has been sorted or is still being sorted?