TBI Financial Services Assistance

Gunstar

Hi Folks,

A family member of mine has a little trouble with TBI financial services.

Basically within 11 years they turned a £1000 debt with Beneficial Bank to a £26,000 debt.

My family member had been paying the interest on the debt as they have been telling her they have a charging order on her house. Today we discovered that the charging order is actually a caution.

Does this change things? Can we now negotiate with them or involve a solicitor and challenge the debt? Is a caution much different from a charging order?

Any help would be great, thanks in advance!

fatbelly

It'll be a restriction.

That's what happens when you get a single name debt and a jointly owned property. It doesn't get registered at the Land Registry as a full charge.

You will need a good solicitor when it's time to sell, and they are hard to find.

The experts on this topic are the regular contributors to this thread:

Charging Order? The myth

Gunstar

fatbelly wrote: »

It'll be a restriction.

That's what happens when you get a single name debt and a jointly owned property. It doesn't get registered at the Land Registry as a full charge.

You will need a good solicitor when it's time to sell, and they are hard to find.

The experts on this topic are the regular contributors to this thread:

Charging Order? The myth

It's a single person with only their name on the property. She is looking to free some equity up from the property and that's when we discovered it was a caution not a charging order.

I think a solicitor would be the best bet to sort it but didn't her want to spend out if there was nothing that could be done about it if you get me?

fatbelly

A bit specialist for this site. But if it isn't what I thought then this may be more difficult to wriggle out of.

Is this a Caution against First Registration?

A Caution against First Registration is a means of protecting a person's interest in an unregistered property and can be registered in respect of charging orders, rentcharges and the like.

The Caution Title identifies the Cautioner and provides details of his interest in the property. The Caution is registered separately and is given a title number. In addition to a Caution Title register there is also a Title Plan showing the extent of the property affected by the Caution.

A caution is not an actual registration of any estate in land. It is merely a means to trigger notification to the person who lodged the caution when an application for first registration is made. In practice the solicitor acting for the purchaser of a property will make a search at HM Land Registry, which will reveal the existence of the Caution. He will then ensure that the Cautioner's interest is dealt with before proceeding with the purchase. Thus the registration of a Caution against First Registration is an effective way of protecting an interest in an unregistered property. As the registration of all property is now compulsorily following a purchase, the Caution is always seen and must be dealt with for the purchase to proceed.

Land_Registry

A caution is a means of protecting a charging order on the land register. Since the Land Registration Act 2002 they are now protected by way of an Agreed or Unilateral Notice or by way of a Restriction.

Based on what the OP has referred to I doubt that this will be a caution against first registration.

The caution is in effect the means whereby the cautioner i.e. the person/company who is owed the money protects their interest (debt) against the person's registered title (property). The effect is that they are entitled to be notified before any entry is made on the register that might prejudice their interest thus giving them the opportunity to object to the entry.

That remains largely the same under the 2002 Act with the new types of protection although it is important to recognise that the fact that the interest is referred to on the register does not force the owner of the property to 'do anything' and it is the terms of the charging order and the court's view that should be referred to and understood.

Our Practice Guide 19 and section 6 in particular provide some guidance on cautions.

In the circumstances and if the debt/charging order still exists I would recommend seeking legal advice if you wish to challenge/renegotiate the debt. The caution will remain on the register until cancelled or withdrawn.

Gunstar

fatbelly wrote: »

A bit specialist for this site. But if it isn't what I thought then this may be more difficult to wriggle out of.

Is this a Caution against First Registration?

Not really sure, this is totally out of my depth! haha

Gunstar

Land_Registry_representative wrote: »

A caution is a means of protecting a charging order on the land register. Since the Land Registration Act 2002 they are now protected by way of an Agreed or Unilateral Notice or by way of a Restriction.

Based on what the OP has referred to I doubt that this will be a caution against first registration.

The caution is in effect the means whereby the cautioner i.e. the person/company who is owed the money protects their interest (debt) against the person's registered title (property). The effect is that they are entitled to be notified before any entry is made on the register that might prejudice their interest thus giving them the opportunity to object to the entry.

That remains largely the same under the 2002 Act with the new types of protection although it is important to recognise that the fact that the interest is referred to on the register does not force the owner of the property to 'do anything' and it is the terms of the charging order and the court's view that should be referred to and understood.

Our Practice Guide 19 and section 6 in particular provide some guidance on cautions.

In the circumstances and if the debt/charging order still exists I would recommend seeking legal advice if you wish to challenge/renegotiate the debt. The caution will remain on the register until cancelled or withdrawn.

Thanks for the info, I think a Solicitor is the best bet after reading through that. Thanks for your help