Charge/caution

poppy43

21 years ago we owed £1000 to the Nationwide Building society, it went to county court but ended up as a charge on our property, now 21 years later having completely forgotten about it we have sold our house but the solicitor cannot complete the sale because of this caution on the property. He seems at a loss as to how to have it removed, nationwide dont seem to have any record of it and letters to the legal department of nationwide are not being answered.

We think we will lose our buyer it's very worrying, is there anyone out there that can offer any advice and I will pass it on to the solicitor.

When you go into the nationwide you just speak to young people who have no knowledge of such things, it's impossible to get to speak to anyone in "charge". Help

TrickyDicky101

Any particular reason you have double-posted?

https://forums.moneysavingexpert.com/discussion/4142935

paddyrg

Can you lodge the cash with your lawyer/somebody in escrow for when Nationwide decide they do want it?

bris

There will be 20 years worth of interest to add on, so it will be difficult to know how much is needed to be set aside, 8%PA is normal.

bris

After a bit digging it seems there may not be interest to add because it's under £5000. So if you pay the debt now you can apply to the court to have it set aside and then have the judgement sent to the land registry for removal. this would take some time though. Your solicitor really needs to push Nationwide legal department to get it sorted.

Set Asides & Variations

These are dealt with under CPR 73.9

You would need to apply to the court which made the original order.

Setting aside a Charging order is usually called “Discharging”, this is under s3(5) of the Charging Orders Act. The arguments for discharge must not have been made to the court previously. Sometimes a creditor may wish to discharge their own Charging Order, as an example they may wish to make a debtor bankrupt., they could still issue a statutory demand even though they have a charge in place (s269 Insolvency Act 1986). You can vary the terms of a charging order via form N245.

Satisfying the Charging Order

If the debt has been paid off, along with all costs, an application can be made to the court for a certificate of satisfaction, this can then be sent to the Land Registry.

Interest on Charging Orders

Statutory Interest

Statutory interest would continue to run whether or not the order specifies it. The N86/87 forms allow ‘any interest’ to be included, this means statutory interest.

This doesn’t apply to Consumer Credit Act regulated debts or Charging Orders of debts below £5,000 unless they have been transferred to the High Court for a High Court Charging Order. (The County Court (Interest on Judgment Debts) Order 1991)

The judgment would carry statutory interest if it was made on or after July 1st 1991 and the judgment is for at least £5,000.

If a judgment has a payment ordered to be made on a specified date or by instalments, no interest will be payable either until that date or, on the amount of any instalment until it falls due.

If a judgement carries statutory interest, so will the Charging Order, even if not mentioned within the order itself. [Ezekiel v Orakpo]. S3(4) COA 1979 states that “A Charging Order shall have the like effect and be enforceable in the same courts and in the same manner as an equitable charge”

Contractual Interest

Many creditors are trying to argue that Charging Orders carry contractual interest after judgment even if the judgment itself doesn’t. There are plenty of arguments against this.

Land_Registry

The cautioner (Nationwide) can apply to have the caution withdrawn or the registered proprietor of the estate affected by the caution may apply at any time for the caution to be cancelled.

The application to cancel should be made by all registered proprietors and form CCD should be used

NB - form CCD is all that is required

The evidence bris refers to above would not on it's own be accepted as an application to cancel the caution. On receipt of a properly completed form CCD notice would be served on the cautioner (Nationwide) allowing them 15 business days within which to object to the cancellation.

It is important therefore to ensure that any application to cancel the caution is a legitimate one - please refer to the Warning at the end of form CCD