2nd Charge - Problems removing due to insolvent lender

PheoUK

Interesting one this. Delay in purchasing a property due to the vendor's solicitors having problems removing a 2nd charge - as the company who registered it have gone under, and therefore presumably they are having issues getting a redemption figure etc.

Anyone else come across this? Anyone got any ideas of how long a delay we might be in for?

davidmcn

If they think there is an amount to be redeemed, then hopefully not too long as that suggests the company can't be long bust (and someone will want the money). If it was actually redeemed some time ago and it's just the discharge which is outstanding, then it might be a more significant delay while they try to find someone interested enough to help. Really depends on the circumstances and who it is.

Thrugelmir

More likely there's insufficent equity in the property to clear the second charge.

Insolvent lenders get taken over. So the new owner of the debt will be known.

PheoUK

OK So further updates. Been doing my own research as none of the solicitors seem to know what to do(!) or advise at all.

I can see the 2nd charge on the property. I have confirmed the company this second charge is registered to was voluntarily dissolved in 2011.

Given this, would I be right in thinking that the 2nd charge (an asset of the company on its balance sheet) would have transferred to the Crown, and would be under the responsibility of the treasury solicitor? And that contacting said treasury solicitor would be the correct course of action to having this charge resolved?

silvercar

This really is for the vendor's solicitor to sort.

They are going to have the same problem with the next buyer, should you walk away.

PheoUK

I know, I just hate waiting and I'm a control freak.

Trying to estimate how long this might delay is all!

davidmcn

PheoUK wrote: »

I can see the 2nd charge on the property. I have confirmed the company this second charge is registered to was voluntarily dissolved in 2011.

Given this, would I be right in thinking that the 2nd charge (an asset of the company on its balance sheet) would have transferred to the Crown, and would be under the responsibility of the treasury solicitor?

Almost, but the charge isn't an asset. The loan would be an asset, if it still existed at the date of the company's dissolution. From other people's experiences, I don't think the Treasury Solicitor helps if you can't show them that there is something still to redeem. Otherwise you need to go to court.

The other possible alternative is that the account had been assigned to another company but their interest hasn't been registered.

PheoUK

Does have me wondering what on earth the vendors have managed to do here!! oh well.

Apparently the solicitors are talking with the treasury solicitor, but they arn't responding. Maybe because of the above. You are right in that I was assuming the charge was linked to some kind of active loan.

What a mess!!

Still, if you can't show them there is nothing to redeem, then surely you can say to Land Registry, this charge is invalid, because the "owner" of the charge no longer exists.

Thrugelmir

What name is the charge in?

PheoUK

Thrugelmir wrote: »

What name is the charge in?

Name of the company now dissolved, if thats what you mean.

princeofpounds

Surely the person you need to contact is the official receiver / insolvency practitioner (not sure what the precise term is for a corporate bankruptcy)