Charging orders & selling property

georgielouise

Hi, i'm not sure if this is the right section.

I had two northern rock loans taken out in approx 2007/2008. I had defaulted on these and these were changed into charging orders although i wasn't aware of this at the time.

I had been paying northern rock a reduced amount monthly, the debt then transfetred to mortimer clarke who I am now paying.

I separated from my husband and the house was put on the market in February. It sold straight away but is still going through the solicitors.

I have since found there are restrictions with the land registry for these, the buyers solicitor won't proceed until these have been lifted. My solicitor has wrotten to mortimer clarke but no response as yet. They have suggested contacting the land registry to see if they will remove these.

Mortimer clarke have offered me a reduced settlement if i clear the debt in full so wouldn't see why they would hold up sale. My question is are land registry likely to lift restrictions or would this happen once debts paid. If mortimer clarke are paid off does this lift the restriction as it was filed by northern rock.

Also i believe contracts have been exchanged, is there any chance buyer could pull put of this drags on

TBagpuss

The Land Registry won't remove them without Northern Rock releasing them. Normally they would be dealt with like any other mortgage - the solicitor would request final settlement figures from Northern Rock and would then undertake to clear the debt out of the proceeds of sale, and on that basis , the restrictions would be lifted.

It would be unusual to exchange contracts without getting the redemption figures to check that there is enough equity to pay off the mortgage and the charges, so check with your solicitor whether you have in fact exchanged contracts.

Thrugelmir

Is there sufficient equity in the property to discharge the debt owed?

georgielouise

Thanks for this I get the feeling my solicitor is not sure how to deal with these. There will be enough equity on my share to pay off the debts once the money has been split. I've spoken to mortimer clarke who advised they will discuss with the solicitor. We signed contracts over a month ago but not sure about the buyer this is just info i've got from the estate agent.

fevlo

If they are restrictions please please please have a read of this thread, its long but well worth the read.
To the latter end of the thread a user called eggbox has been very active in the thread and really knows what their talking about.
It may well be of some use to you

https://forums.moneysavingexpert.com/discussion/1839539

Land_Registry

The restrictions would not be removed unless either we received an application to remove them supported by evidence to justify that removal for example a release by the creditor.

Such restrictions though are sometimes overreached when the property is sold and fevlo has kindly signposted the MSE thread which covers this in some detail

freebiequeen

Hello All/Land Registry Rep

Unfortunately, I'm on the other side of this, as I'm a creditor.

But, please don't waste your sympathy on the Debtor, as he really is not a very nice person, and he's certainly not strapped for cash either...:eek:

Over the years, I've obtained three charges over the debtor's beneficial interest in a jointly owned property. I also have an Order for Sale giving me the right to find a buyer and appointing my solicitors as Trustee for Sale.

I know that the Debtor is in the process of trying to make a private sale without settling his indebtedness to me. How can I protect my interest, so that he cannot sell without paying off the money he owes me?

Can I register the Charges/Order for Sale by way of a Notice or Restriction, so that the sale cannot be registered unless I provide confirmation that I've been paid? (I know I can register a restriction requiring that I be given notice of impending sale, but that won't give me much time to act).

Land_Registry

freebiequeen - the advice we can give is really limited to our online guidance re Charging Orders and the protection of third party interests

Orders for Sale can be noted on the register and section 8.14 of the second piece of linked guidance refers.