FTB Interim Charging Order on Land Registry Forms

claire1973

We are FTB and today we receive lots of paperwork from our solicitors.

We have been sent a copy of the Land Registry register of title and under the heading Charges Register it says Equitable charge created by an interim charging order of the Bradford County Court dated 2009 in favour of CL Finaance Limited, what does this mean to us and will this effect our purchase?

There is also another one under the charges but this only gives
Proprietor Blemain Finace Limited and there address dated 2007

EA said they have financial difficulties and need a quick sell hence low asking price

Many thanks for your help

RAS

Charging orders are what happens if the seller has debt taken to the County court, CCJ awarded and not paid off as instructed by the court.

Yes, they want to sell ASAP to clear their debts.

claire1973

so they can still sell the property, I was worried that they had to be paid off first in order ofr him to sell the property or if not we could be liable when we bought the house

ab7167

Get your solicitor to check that the proceeds of the sale will cover the outstanding debt. We had this problem, and the purchase fell through as the vendor was having problems getting the second charge holder to release the charge as there wasn't enough money to pay the second charge in full. Also, our solicitor advised us not to let the vendor have access to the deposit we were paying between exchange and completion in case they were made bankrupt during this period. It is standard practice for the deposit to go up the chain between exchange and completion, but you can refuse to allow this. Of course, the chain may then fail as the vendor will have to find the full deposit on their onward purchase themselves rather than using the money you have effectively lent them for the period between exchange and completion. We declined to risk £35k of our hard earned cash in this manner. Apologies if that is not totally clear, I'm not a legal type person and that is how I remember our solicitor explaining it to us.