Charging order?!?!

natant24

Hi I'm hoping that some of you can give me advice.

I was made redundant and couldnt repay Natwest a loan and overdraft back, so they lumped it together and got a ccj against me. As I am a single mum to 2 children (aged 1 and 3) and on benefits, I am paying them £20.00 pcm. The debt is now approx £16,000.

They went back to court and got the judgment changed so the balance was due forthwith as they wanted to apply for a charging order which was granted.

Just went back to court today, the charging order was made final even though both me and my ex opposed it. Both of us sent our letters of objections to the court and the judge looked like he hadnt even read them. I told him I would probably end up with £2k at the end of the sale and he just said, well they wont get much then will they!!! Without even looking at me said it was done, stamped his paper and sent me out.

The house is currently on the market and the total equity in it is £6k, if that. And is also mortgaged in joint named and debt is totally in my name.

The land registry documents say it is a restriction.

I have been reading some of the posts on here and im more confused than ever!

If it is a restriction only, can I stick two fingers up to them when the house is sold and they get nothing?

Will the charging order (or restriction) stay on the registry once the property is sold as it will not be paid off completely?

I think I have more questions but that is all I can think of at this moment!!

Thanks for any and all advice!!

thechippy

The restriction will fall away at the point of sale.

When you sell you MUST get a solicitor that know's the difference between a restriction and a c/o, then you will walk away with the proceeds of the sale.

RAS

Hi

A lot depends on the exact wording on the CO, but if they got it wrong, your solicitor can sell the house, pay the mortgage off and tell the company about the sale later, so the restriction is ineffective..

natant24

Thanks!

The Land Registry documents I have say that it is a restriction, but today the judge was adamant that it was a charging order against my half of the property. He quoted the charging order act to me as well.

My house is on the market now and there will not be enough money to pay the whole debt off. The judge just said thats acceptable and the company wont get all their money but doesnt that mean that it will stay on the registry if the balance is not cleared?

I hate all this its so technical.

thechippy

If the property is joint and the debt single, it's a restriction - end of.

MANY judges and solicitors don't know the difference...

Please refer to post #2

natant24

I did think that as I have been doing a lot of searching online since this all came about. It seems a bit of a grey area to all solicitors and judges this.

DVardysShadow

I would go with what thechippy says on this.

Sometimes Judges actually grant orders, tongue-in-cheek. This may have happened here. He may know full well that a restriction could not be made to stick, but gave the order anyway and you were just spoiling his fun granting a order which would be no use to the complainant.

thechippy

Judges get things wrong all the time...;)

fatbelly

The judge wouldn't particularly know or care what happens at the time of sale. He just awards the Charging Order.

This link should take you towards the end of the classic thread

Charging Orders? The Myth

Although that is now a long thread, there is a huge amount of info and useful links within it.

Still seems a problem finding a solicitor who understands the law though!

natant24

Ok this is what I have receieved from the Land Registry.

I have cut out the boring bits!!

"B136(CO) Notice of an application to register a restriction against the land"

"we have received an application to register a restriction in the propprietorship register of the above title"

"as a result of the application the following entry is being made: RESTRICTION: No disposition of the resgistered estate, other than a disposition by the proprietor of any registered charge registered before the entry of this restriction, is to be registered without a certificate signed by the applicant for registration or their conveyancer that written notice of the disposition was given to Natwest, being the person with the benefit of an interim charging order on the beneficial interest of (me) made by the county court on 26.05.11".

"The applicant states that the court has made a charging order against this property. Where the court has made a charging order the person with the benfit of it is entitled to protect that interest with an entry in the register of the type now applied for and set out above."

"If the court order is made against a person who owns the property with you and not personally you then the above still applies. The court oder only affects the interest in the property of that person but the applicant may still make this application."

"It is important to note that the restriction applied for will not prevent you dealing with the property as long as its terms are complied with."

Sorry its long winded but thats the gist of the letter I received before the !!! of a judge made it final yesterday!!:(

natant24

Could they also try and force me into a bankruptcy to get their money?

My house is on the market as I need to move from this area due to rough neighbours and protect my kids and Im terrified I'm going to end up with nothing at all.

Im feeling quite blue today!!