Charging order help please

Lipstick85

Hi I'm buying my parents home and there is a charging order against the property? Could this cause problems for my mortgage?

The charging order is for a business my father bought the business got into trouble and my dad was unable today his debts.
My dad has spoken to the man he obtained the charging order against my parents he has advised he is happy to settle the order without getting solicitors involved is this possible? How do you do this?

Any help is much appreciated
Thanks

Fire_Fox

Welcome! A charging order is normally paid off as part of the conveyancing, is there enough equity to cover it? It won't affect your mortgage application, you are not the seller.

G_M

If your dad settles the debt, his creditor can instruct the land registry to lift the Charging Order (I believe).

Either search the LR site for the relevant form, or ring them and ask.

Lipstick85

Thank you for the replies.Yes there is enough equity.

Land_Registry

Anything can generally be cancelled or withdrawn - all a question of how the charging order is protected on the register

Check the wording of the entry and then take a look at our Practice Guide 19 which explains more about Agreed and Unilateral Notices and Restrictions - the 3 most common ways of currently protecting interests on the register. The guide also explains how they can be removed and the forms required for doing so. Section 8.1 refers to charging orders in particular.

From the limited information provided above I suspect that the charging order has been protected either by way of a Unilateral Notice or, if it has been registered for a number of years, as simply a notice e.g. Charging Order dated...........
Section 3.8 refers to the removal or cancellation of both types.

If after reading the Guide and checking the register you remain unsure then Contact Us with the title number and our Customer Support Centre should be able to advice as to what form would be required for it's removal. They cannot give legal advice but they should be able to match the form and entry for you.

Lipstick85

Hi,

Thank you for your reply we have found out its a WCT form we need to complete so we are going to ask the gentlemen who has the charging to complete it and then we will take it to land registry. Can you advise once the land registry has received it how long it will take until it is removed?

Thanks

Land_Registry

In general terms if a Notice has to be served on the beneficiary of the charging order then the Notice expires after 15 business days. If a consent is received in response to that Notice or no response is received during that time then the application would be completed.

Every title tends to be different though and each application treated on merit but if you work to the 15 business day rule then that should give you a rough idea of the time spans involved.

Apologies for slow posting

Lipstick85

Hi thanks for the response my Dad took the forms signed by the man who took out the order and they have now wrote to him and said if he doesn't object it will be removed 4th December however there is nothing on the letter for him to sign and say its ok to remove it. We don't want to wait till 4th Nov is there something we can do to speed it up ?
Thanks

geoffky

No the law must be fair to both sides hence giving the person who has the charge time to act if they think the withdrawal of the charge is wrong..

chris_m

Have to admit I'm surprised that it's only 15 working days before the charge is automatically removed - that's only three weeks so what if the beneficiary is away on holiday or something?

Lipstick85

He has just signed the forms this week to advise he is happy to have it removed.Now they have wrote to him obviously to check the signature is not forged. I was just hoping we wouldn't have to wait 15 days and the man could perhaps write a letter confirming he had happy for it to be removed