buying a house with charging orders

rudeboytee

I am in the final stages of buying a property and I have just found out there are 3 charging orders on the property.The price im buying the property for doesnt cover the charges, only the existing mortgage.My solicitor tells me the sale cannot go ahead until these charges have been settled.Is there any way of purchasing this property without inheriting the debt.The sellers debt are around £28,000 he says he is trying to sort out payment plans but its not looking good.Any advice would be greatly apreciated.

silvercar

you can't purchase the property with the debt; your mortgage needs to be a first charge on the property.

Either the seller sorts his debts out and gets the charge released or he can't sell.

He may be able to persuade the lenders to move the debts to unsecured loans; they may not want to budge. He needs to negotiate with them, if they refuse to allow the sale they won't see any money from him. It all depends how much money is left after the initial mortgage is cleared, they could accept part repayment and part unsecured further loan. These charge holders are not in a good position, the loan may be secured on the property but there is not sufficient funds to repay them. Odd that the original mortgage holder allowed these charges to be secured on the property as it weakens their position in that the other charge holders can block a sale.

Back to your problem, the seller has a mess to sort out. With 3 charges on the property he has a lot of negotiating to do and it could take months, I would be inclined to look elsewhere.

rudeboytee

To silvercar, thanks for your advice, im reluctant to pull out because i stand to lose over a £1000 what with the fees ive already paid.Chances are it will go to repossesion,not sure wether to wait or pull out.