Land Registry

Grahambud

Can land registry add someone I owe money to to my sole deeds???

alastairq

If they have obtained a Charging Order...then that Charge is recorded at the Land Registry.

Hence, if the property is sold, then...from the purchase price, are deducted any amounts owed to Charge holders..[1st harge, usually mortgage...2nd charge, maybe loans, etc?].....whatever left ids 'equity', and goes to the person registered on the Deeds..

Grahambud

So what happens if I go bankrupt and the property is repossessed?

Land_Registry

A Charging Order is often protected on the land register by the creditor in an effort to protect that interest. In order to register that interest they must of course apply for it to be registered/noted.

Our online guidance explains how a creditor might seek to protect their interest in such cases.

As far as bankruptcy and repossession are concerned it is probably wise to separate the two as repossession can happen in other circumstances for example you may default on your payments over time but bankruptcy is not automatically linked.

So if the property was repossessed the mortgage lender would have to apply through the courts for repossession and they would then sell the property. If their legal charge was registered prior to the interest protecting the charging order then the CO would be removed as it would not bind the new owner. The debt though would of course still exist but as you no longer owned the property the interest cannot be protected against that property's registered title.

Fishingtime

Grahambud wrote: »

So what happens if I go bankrupt and the property is repossessed?

Sounds like you will have to think of another way of trying to avoid the debts you owe

woodformoretrees

[STRIKE]Is this the charging order you asked about previously - regarding the ex-girlfriend's mother lending you the deposit to buy, or is this another charging order?[/STRIKE]

sorry, ignore, didn't realise this was an old thread.

silvercar

Land_Reg_rep wrote:

So if the property was repossessed the mortgage lender would have to apply through the courts for repossession and they would then sell the property. If their legal charge was registered prior to the interest protecting the charging order then the CO would be removed as it would not bind the new owner. The debt though would of course still exist but as you no longer owned the property the interest cannot be protected against that property's registered title.

If the proceeds of the sale were more than enough to pay the first charge (mortgage), then the lender in repossession would take their money (including legal and sale costs) and repay the charging order before giving any remaining money to the repossessed (or OR if bankrupt).

So if you were considering bankruptcy and someone took you to court and succeeded in gaining a charging order, they would get their money on a sale following repossession, whereas other debtors may not.

I'm not sure on the rules if the charging order was gained after bankruptcy.