Charging Order - Restriction

Scooty42

Hi Guys,


Need some adviace and help please.


Back in 2008 I was unemployed and out of work for over 12 months. I nearly lost our home and ended up with a suspended repossession order and over 8k owning to Santander.


Last year DLC - who bought my credit card debt - managed to get a charge on our home.


I'm not in the position that we cannot afford to stay in the house any longer. The house is worth just enough to pay off the mortgage but can I sell with these restrictions?


I have downloaded the Title from Land Reg and this is what it says .


RESTRICTION: No disposition of the registered estate,


other than a disposition by the proprietor of any registered charge


registered before the entry of this restriction, is to be registered


without a certificate signed by the applicant for registration or their


conveyancer that written notice of the disposition was given to


Hillesden Securities Ltd (Co. Regn. No. 1418063) at c/o Direct Legal


and Collections, Buckingham Road, Brackley, Northants, NN13 7DN (a/c


ref: LIT/479092452), being the person with the benefit of an interim


charging order on the beneficial interest of ********


The Debt is mine and the house is in joint names.


Any thoughts would be welcome.


Scott

Road_Hog

It sounds like an interim charging order. It basically means that you have to have written agreement from the debt company to allow you to sell.


In practice, this means that your solicitor will promise to pay the debt from the proceeds of the house sale. As long as you agree to this and there is sufficient equity in the house, then the sale should go ahead.

dj.boz

I have experience of both selling and buying with a charging order against a property.

Last year I sold my property, which had an additional charge. As there was enough money from selling the property to pay both the mortgage and the other 'debt' it was not a problem.

The house we were buying had a number of additional charges against it (four including the mortgage), and there was not enough money from the purchase to pay all the outstanding debt. The seller had to negotiate with all parties to release the charges on sale of the house (and it is something that the solicitors / banks will insist on that there are no charges on the property at when sold). This was very difficult for the seller, as each party wanted the full amount and would not simply relinquish its security.

In hindsight (and you may not wish to hear this), we should have stayed clear of this, it 'fell through' so many times. It may be easier to approach the companies and explain that you want to sell the house, let them know the market rate / expected purchase price and talk to them about it. We found with our seller that some where more willing to make deals than others. His situation was that if he did not sell to us, he did not have time to find another buyer (and would have made himself / been made bankrupt).

I hope you find a way through this.

rosyw

Would suggest you have a read of this:
https://forums.moneysavingexpert.com/discussion/1839539

Land_Registry

Scooty 42 - you may want to have a read of the Charging order thread on here?

The wording of the restriction is crucial from a registration perspective and for example "...that written notice of the disposition was given to Hillesden Securities Ltd......" is perhaps less onerous than obtaining a written agreement from the debt company mentioned.

The posters in the linked thread will be able to offer you some wider guidance on this although the thread contains a myriad of examples which are likely to be relevant