1st & 2nd Charge on house - confused

HOGOGG

Hi There

I'm currently trying to sort out my deceased brothers Estate and i'm getting a bit confused with the property.
He has a mortgage with Barclays for approx £45k and an Endowlement policy with Scottish Life for £45k paid on death , which sounded straight forward that the Endowlement company will pay the mortgage.

I have just been confirming this with Barclays and they have told me that they only hold the Second Charge on the property as Mortgage providers, and that the First Charge is with a company called "Scott Life Homeloans".

I've done google search to try and find the company and can not locate them, i phoned Scottish Life as i thought maybe it was part of them but they seem to think that it was company Barclays took over ?

Should there be two charges on the property and if so how do i contact "Scott Life Homeloans" to find out what he had secured on the property as i can't find any correspondence relating the company but i think i'm going to have to find out before selling the house to pay off other debts.

any help would be much appreciated

CLAPTON

contact the land registry to check exactly who has a charge on the house.

HOGOGG

CLAPTON wrote: »

contact the land registry to check exactly who has a charge on the house.

Many Thanks, i have contacted the Land Registry today and was told the Charge is from a company called "Scotlife Home loans no.3" never heard of them, and have been told they went bankrupt in 2005.

Will the Charge still stand ?

HOGOGG

Anyone ???

lynzpower

I thought that all debts were dissolved when someone passes away- Im not sure if this applies to secured loans? Anyone know?

OP if you dont get any answers, it might be worth ringing the FSA for advice on this one. they should certainly have some sort of records as to whom Scotlife are?

Sorry I cant be more help. hopefully someone else will know x

Xbigman

Debts are not dissolved on death, they are attached to the estate, so still need to be paid.

On the OP's problem. If the first charge holder is bankrupt you need to find the recievers who handled the bankruptcy. They will know the status of the charge/loan. Or, as you intend to sell you could arrange a solicitor to handle the legal side of the sale now and ask them to trace the first chargeholder.

Also check the paperwork for the mortgage. If Barclays took over the mortgage from Scotlife homeloans when (if) they bought them out then its possible Barclays left the first charge in place and put one in their own name on as well. But they are both for the same loan.
Regards


X

silvercar

I thought that all debts were dissolved when someone passes away- Im not sure if this applies to secured loans? Anyone know?

NO. Secured debts are still secured. The debt would have to be repaid when the property was sold; it may even be that the debt has to be repaid from the estate if death occured with no plan for the inheritors to sell.

Ordinary debts (unsecured) are paid out from the estate of the deceased.

If there is insufficient funds in the estate to pay the debts then they get written off.

In this case if Scotlife (No 3) has gone into liquidation the liquidators should have an interest in the secured debt. It may well be that the liquidators sold on all the secured debt to another company as a job lot. I would suggest finding the liquidators and contacting them.

lynzpower

thanks for the clarity on that X & Silvercar

HOGOGG

Thank you all so much, i have just this minute emailed the FSA for further details an i've printed off the liquidators details to contact them tommorow, thanks again:beer: