Credit Card charge against property, advice on options?

ideal_knowledge001

Hello Guys,

I needed some advice for one of my uncles.


My uncle's son is looking to buy the property off his dad via a concessionary purchase. The outstanding mortgage amount on the property is £170,000.00.

My uncle is looking to sell the property to him for £170,000.00. The son will give a down payment of £20,000 so then he will need to take out a mortgage of £150,000.00

However my uncle has a credit card charge against the property which the court has put in place. The term states whenever my uncle sells the property to someone, then after paying back the lender (the mortgage company), any remaining funds will go towards clearing the credit card charge first and if after that anything is left over, then it will go to my uncle.

My question is if my uncle was to sell the property to his son for £170,000.00 just enough to clear off the mortgage exact then what happens to the credit card charge? There won’t be any extra funds to pay this charge off.

Is it possible to avoid paying the charge like this or in any other way? If so are there any risks?

If this works and the son does purchase the property for £170,000.00 what happens to the credit card charge?

Any replies will be really helpful so I can advise my cousin.

Thank you

molerat

Buyer's solicitor will find it.
Buyer's mortgage provider will find it.

izools

The current homeowner will have to sell the house for a minimum of whatever is owed to all charges against the property - all mortgages, all charging orders, for the sale to complete.

All charges, mortgage and charging order, will be listed on the title deed for the property held by the land registry and will be retrieved by any solicitors working on the sale of the property.

In fact, it's publicly available information. Anyone who knows the address can obtain a copy of the title deed and see which creditors have staked a claim against it.

How much is the property worth?

jonesMUFCforever

As above if all charges on the property are not cleared the sale will not go through.
Nice try what next to dodge his debts?

ideal_knowledge001

Nice try what next to dodge his debts?[/QUOTE]

Not a nice try he is in serious trouble and his debt built with interest and his condition to not be able to work long hours, so think before you speak ill.

ideal_knowledge001

izools wrote: »

The current homeowner will have to sell the house for a minimum of whatever is owed to all charges against the property - all mortgages, all charging orders, for the sale to complete.

All charges, mortgage and charging order, will be listed on the title deed for the property held by the land registry and will be retrieved by any solicitors working on the sale of the property.

In fact, it's publicly available information. Anyone who knows the address can obtain a copy of the title deed and see which creditors have staked a claim against it.

How much is the property worth?

Property is worth about 200k and i believe charges are around 10k.
I didn't know it's public information, any ideas where I can get hold of this information?

Thank you

pvt

The scheme your uncle and cousin have cooked up to avoid paying what your uncle owes will not work.

The CC company have a charge on the property - they will get their money.

izools

ideal_knowledge001 wrote: »

Property is worth about 200k and i believe charges are around 10k.
I didn't know it's public information, any ideas where I can get hold of this information?

Thank you

Land registry

chanz4

So your trying to sell well under market value, to avoid debt....

JournalGirl

So why doesn't the son buy for £180,000 (still a great discount) giving Uncle enough to clear the mortgage and the credit card - everyone happy!

ideal_knowledge001

JournalGirl wrote: »

So why doesn't the son buy for £180,000 (still a great discount) giving Uncle enough to clear the mortgage and the credit card - everyone happy!

yes I think that maybe the plan forward, I am not 100% sure what they will do I just wanted to gain some knowledge so further advise them, to me it looks best to sell high to pay the cc charge and then try and add more deposit to lower the mortgage as the son cannot get a mortgage higher than 150k