Property Restriction

hummy

Hi,

Not sure if i have put this question in the right forum but i'm sure someone will point me in the right direction.

I am owed some money from a couple of people. They are refusing to pay so now i am wanting to put a charge on a property they own. The problem i have is that i am owed money from two people and the property is in joint ownership with 2 other people. So they only own 50% of the property.

I have done a land registry search and have noticed that there are some restrictions in place on the property. Here is what it says on the Land Registry Title Register:

2 (07.05.1997) RESTRICTION: No disposition by a sole proprietor of the land (not being a trust corporation) under which capital money arises is to be registered except under an order of the registrar or of the Court.

3 (30.10.2007) RESTRICTION: No disposition of the registered estate by the proprietor of the registered estate, or by the proprietor of any future registered charge, is to be registered without a written consent signed by the proprietor for the time being of the Charge dated 26 September 2007 in favour of Commercial First Business Limited referred to in the Charges Register.

Cutting out the technical mumbo jumbo what does this exactly mean in pure and simple english? does it mean that if i am to register a charge on the property all owners must consent to it? or does that just refer to the sale of the property has to be consented by all parties?

What legally is my standing on getting a charge and then perhaps even forcing the sale. I know there is equity in the building.

Thanks for your help.

pie81

I'm not sure what the 1997 one means but I'm pretty sure that the 2007 one means they have a mortgage on the property with Commercial First and you can't take a charge on the property unless Commercial First agree. (Which they won't).

hummy

ahh...if that is the case then is that not bad news for me?

ILW

When you say these people are refusing to pay you, is the because they are disputing the debt, or are they just saying they do not have to money to pay you?

Hippychick

Go see a solicitor and they will help you register your interests, but the 2 restrictions are basically:

1. The property cannot be sold by just one party unless a court order has been made.
2. The property cannot be sold without the consent of the mortgage lender (which they will give when the mortgage is redeemed).

You should still be able to register a charge or restriction against the property.

hummy

Hi ILW - They starting paying me back some money and then i sent a letter demanding full & final payment and they are now disputing the debt. So i have to go down the CCJ route and then charge their property.

Hippychick - yes i am speaking to a number of debt recovery specialist lawyers but i'm just slighlty concerned by the costs involved so wondering if i should go it alon with moneyclaim online. I just saw the restriction and didn't fully understand it.

Thanks to both.

Richard_Webster

The first restriction is a standard one imposed whenever two or more persons own a property as tenants in common.

hummy

Hi Richard,

Can you give me your expert opinion about the second restriction. will that affect me from putting a charge on the property.