Land Registry vs Creditor Debt

unluckytime

Hi everyone.

We are in situation where we are looking to sell our house. We have outstanding 235k mortgage and 15k secure loan and ... 15k on land registry from one of my company debts where I gave personal warranty.

We can sell the house for 250k, what will clear mortgage and secure loan, but not the land registry charging order. The charging order on land registry from my business creditor came 3 months ago. Can we sell the house without paying this land registry debt (making it unsecure again), because clearly there will be no money left to pay after the house sale, or we can't sell it?

Thank you for all advice

AbbieCadabra

some info on the HM Courts website

my understanding is that the Charging order is registered against your property & only comes into force when the property is sold, it then has to be paid from the proceeds (after any existing mortgage is cleared first).

it's a bit of a gamble & a waiting game for the creditor, but if you haven't got any other assets, i can see why they've gone this route. i used to work in a credit control section & we'd only do charging orders as a very last resort as nothing could be guaranteed, time to be sold or funds available after the sale.

unluckytime

Thank you for your reply. I called to Land Registry, but they don't know nothing ...

AbbieCadabra

if you're going to call anyone, i'd be calling the court where your judgment is registered, Northampton possibly?

this is a guess, but if there will be insufficient funds to clear the charging order, they'll have to apply for different action to be taken - warrant/attachment of earnings etc.

actually, i'm not sure where your secured loan would come into this, i'd guess that the charging order will take priority over the secured loan?

i really would call the court & get some advice. have you spoken to CAB or any kind of debt counsellor?