Legal Charge Query- selling flat

ConfusedBlonde82

Hi

I've looked through the forum and apologise if this thread or one similar is around but I couldn't find anything recent.

4.5 years ago I got into some financial difficulty due to redundancy and had arrears on my mortgage (Northern Rock). There was a loan element on the mortgage of approx £10,000.00 that was the part in arrears and a CCJ was submitted. I did settle the loan element in full before a Court hearing, however my credit rating had this noted and a legal charge was put against the property.

I am now selling my property and moving into a house that my boyfriend is in the process of buying (alone, I won't be on the mortgage with him).

What would happen to the legal charge? As I am not buying another house, would it have to be taken on by my boyfriend or would it be deleted as I won't be in the property anymore.

Thanks in advance.

xxx

Annisele

Usually you won't be allowed to sell the house unless you've repaid all the loans secured against it.

Will there be enough money to repay all the secured debt? If not, you might still be able to sell - but you'd have to come to some arrangement with the lenders. That might involve taking out new unsecured loans to pay off the secured debts.

G_M

Annisele wrote: »

Usually you won't be allowed to sell the house unless you've repaid all the loans secured against it.

Will there be enough money to repay all the secured debt? If not, you might still be able to sell - but you'd have to come to some arrangement with the lenders. That might involve taking out new unsecured loans to pay off the secured debts.

Did you understand the query? - cos I didn't....!

I did settle the loan element in full before a Court hearing,

so how come:

a CCJ was submitted

If the arrears were cleared
a) no CCJ would have been noted and
b) any Charge should have been (should now be) removed.

But maybe I'm just not reading this right.

Annisele

OK, you caught me - I didn't really understand either.

I went for: there's clearly a secured loan of some sort (even if it's only the mortgage); you can't sell a house without doing something about outstanding secured loans; so OP should work out whether there's enough equity in the house to repay all the secured debt.

My best guess is that this is a Northern Rock together mortgage and somehow the unsecured element has ended up getting added to the secured part of the mortgage. I thought by "settled the loan" OP might have meant the arrears were settled - because otherwise there'd be no charge other than the original mortgage - but I could be barking up entirely the wrong tree.

G_M

Yeah - sometimes you just have to read between the lines and.... :rotfl: