Second charge legal?

foxland

Hi,

I wonder whether anyone can help me. I am trying to sell a property, but there is a shortfall and the second charge (Firstplus) is refusing consent and will not discuss. Thats a different subject though!

My mortgage company however state that the second charge should never have applied the charge as they did not consent to it. The land registry states:
"RESTRICTION: No disposition of the registered estate by the proprietor of the registered estate is to be registered without a written consent signed by the proprietor for the time being of the Charge dated May 2004 in favour of [BANK] referred to in the Charges Register."

Is the second charge legal and how does that affect the loan agreement?

Thanks.

PNPSUKNET

it is legal if enforced by the court, people can have many charges on them

foxland

Many thanks. Looks like a court may have to make that decision - grieves me that they prefer to take repossession than let the sale go through (vacant at the moment, so repossession may be the only way forward) - only if they'd discuss with me a way forward.

jonesMUFCforever

It is legal the first charge is held by your main lender - the second lender would have asked to put their charge second in line to your first lender.
The first do not have to agree.
The best you can do is try to get an unsecured loan loan to clear the shortfall or otherwise the sale will not proceed.