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Charging Order? The myth

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  • eggbox
    eggbox Posts: 1,821 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    FBaby

    Can you clarify exactly what you mean when you say it says "I owe the creditors for mr 'ex named' debt" on your LR details? I'm just asking as YOU don't owe the debt under any circumstances.With regards to EGG forcing a sale, forget about it as its a non starter. Namely because the CO they have is against your Ex's "Beneficial Interest" in the property that no longer exists.

    I would be inclinedto write to the LR requesting the removal of the Restriction as it is now "over reached". Explaining that you are now the legal owner and sole beneficiary when any sale is made.
  • FBaby
    FBaby Posts: 18,374 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    The exact wording is I think the standard one for a restriction I think. It says exactly: No disposition of the registered estate is to be registered without a certificate signed by the applicant for registration or his conveyancer that written notice of the disposition was given to 'creditor + creditor address' being the person with the benefit of an interim charging order o nthe beneficial interest of 'Mr Ex' made my 'place of residence county court on xxx'

    The proprietor is definitely listed as me only.

    I have calmed down a bit! After all, as long as it is a restriction, even if indeed, the fact that it was a transfer rather than a sale means it couldn't be removed, it is still only a restriction and therefore shouldn't be enforceable but i will take both your advice and right to the LR.
  • eggbox
    eggbox Posts: 1,821 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    FBaby

    That is a standard Form K Restriction and, to be fair, doesn't say YOU owe the money just that no registration can be made without notifying EGG.

    As I said to s.May previously, I think its possible a creditor can object to a transfer happening on the basis of the BI disappearing. However, if its already happened that would mean them having to go back to Court and get the transfer overturned by a Judge which would be cost restrictive in many cases and also risky given your circumstances of having paid the mortgage yourself for so long.

    You also have nothing to lose by contacting the LR to explain whats happened.
  • Hi I am very interested in this because I have been falsely threatened with this if I jointly own the property with a housing association is a charging order not possible with the above restrictions?
  • eggbox
    eggbox Posts: 1,821 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    linkstink wrote: »
    Hi I am very interested in this because I have been falsely threatened with this if I jointly own the property with a housing association is a charging order not possible with the above restrictions?

    A Charging Order is possible but what differs is what asset it is made against. If you are a sole owner of a property (or joint owners and joint debtors) then the Charge is made against your Land (or property) similar to how a mortgage is. This then has to be repaid, like a mortgage would, when the property is sold as it is an equitable charge.

    If you are a sole debtor but a joint owner, however, current law only allows the CO to be registered against your financial interest in the property (or equity) and is, therefore, not an equitable charge. As such, it can only be notified on the Land Registry that a CO exists by a Restriction. Which, as this thread points out, does not have to automatically be repaid when a sale of a property is made.
  • Hi everyone, i have been looking for some advice on this matter myself and hoping someone here can give some. I had a unsecured loan with Tesco of around £10000 which i couldn't pay. I was taken to court and a final charging order placed on my joint property although the debt was mine alone. I have since received a letter from Incasso claiming to be acting on Tescos behalf asking me to start making payments. I went to the CAB and they made a offer of £25 a month which was accepted for 6 months.My problem is
    1 : Has Tesco sold this debt onto another company and if so what happens to the charging order.
    2 : Do i have to pay this company as i was under the impression Tesco would get there money whenever i sold the property.
    3 : If Tesco haven't sold the debt why would they ask another company to intervene when they have secured the debt.
    I can't get my head around it and really hope someone can help.
    Thanks in advance.
  • eggbox
    eggbox Posts: 1,821 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    1. Unless Tesco have written to you and informed you they have sold the debt on (to which you are entitled to see proof of the debt assignment to a third party) then the debt is still owed to Tesco. But if Tesco do sell the debt the CO will then be owed to whoever they sell the debt to.

    2. They are entitled to ask but, if you read this thread through, you will understand there isn't much they can do if you don't pay anything (or when you sell if you choose not to pay then, either)

    3. It's normal for companies to sub contract the debt out to "professional" debt collectors, such as Incasso, when the initial demands for payment fail.
  • eggbox
    eggbox Posts: 1,821 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    eggbox wrote: »
    2. They are entitled to ask but, if you read this thread through, you will understand there isn't much they can do if you don't pay anything (or when you sell if you choose not to pay then, either)

    I forgot to include that if the debt is sold on then the new owner has to go back to Court to get their name attached to the original CCJ to take over the CO
  • cue1boy
    cue1boy Posts: 3 Newbie
    edited 2 September 2012 at 4:03PM
    Thanks for the reply, i have had no letter from tesco telling me they have sold on the debt, that's why i'm surprised to hear off this other company.I don't know what to do for the best. Should i phone both companies or should i seek a solicitors advice. What bothers me is that if i paid this company all the money (although i'm in no postion to do so) tesco would still have a charging order on my property and i might end up paying again and also have trouble getting it removed. Also from what i've read on hear the charging order should not have been placed in the first place as the debt was mine alone and the house in joint names. Thanks.
  • eggbox
    eggbox Posts: 1,821 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    cue1boy

    As I explained; its normal practice for money lenders to get "Professional" Debt Collection firms to try and collect their debts for them. So don't be surprised anymore as its normal practice.

    Whatever you do pay Incasso will come off your Tesco debt as they are only acting as agents for Tesco (who will be paying them for acting in their behalf.) But by all means write to Tesco and ask them to verify that Incasso are collecting their debt if it helps put your mind at rest.

    If you are a joint owner you won't have a Charging Order registered against your property at the Land Registry; you will have a Restriction registered notifying anyone who is interested that you have a Charging Order against your share of the equity (or Beneficial Interest) in the property. Which, if you read this thread, will explain to you how different that distinction is.
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