Land Charges

philb82

Hello


I have a question regarding charging orders. Me and the wife are looking to move in the next 4 or 5 years and something has got me thinking. Is it possible for a previous owner to sell a house or be made bankrupt and leave a CO on the property? The reason I ask is because the previous owner was made bankrupt in 2003.


I have a copy of the Land Charges Act 1972 from 12 June 2001 and on this it says 'No Subsisting Entry' but underneath has details of Luton County Court, a date, debtors name and an amended address.


However there's a HM Land Registry document from 13 June 2001 and under the heading 'Result' it read 'It is certified that the official search applied for has been made with the following result.........Since 27 November 2000 no adverse entries have been made'.


Does this mean that there are no debts on our property from the previous owner?


We've always known about these documents. However as we are seriously looking into moving, I am more aware of these things now as we don't want any nasty surprises when we come to sell


Thanks


Phil

rizla_king

if the previous owner was made bankrupt in 2003 then a 2001 search is not going to be relevant?

Sale should clear anything there ever was as far as I know. A full CO would have to be paid, and a restriction would be void after sale.

Tixy

It is possible in theory for a CO to remain on a property after it has been sold.

However any quarter decent solicitor would ensure this did not happen.

If you obtain a copy of your property's land reg documents now (costs £4? I think) then it should will show any parties that have a current charge over the property (e.g. if you have a mortgage your mortgage company will be listed).

philb82

Thanks for your help.


I have downloaded the title register and everything seems in order, the debts shown are ours and just ours. On the register there is a restriction, what does this mean? It's from the Nationwide and I am aware of the debt but I thought it was a charging order. We have another charging order which is listed as an order along with our mortgage.


So what is a restriction? Also the title register has given me details of the debt which is very useful so I can now contact them to make payment arrangements.


Phil

Tixy

A restriction is similar to a charging order but is when a debtor co-owns the property with another person not named on the debt.
So the creditor cannot obtain a full charging order against the property as a whole and instead put on a restriction which means that it should be repaid out of any of the equity of the debtor only.


Useful thread here - Charging Order? The myth

philb82

Now I have the details of this Nationwide debt I am going to contact them about payment. The debt is currently with a solicitor, will they accept payment in installments or would it be have to paid in full? I really want to get it paid to remove the CO and the CCJ but can only pay in installments.

Phil

terryw

Please READ the thread from
Tixy above

There is a lot to read but this could well be to your advantage

Bw

philb82

I have read the info from Tixy. I understand that because the debt is in my name and mortgage is in joint names, i don't need to pay the debt from the sale of the house. However in a few years the wife and I will want to sell and apply for another mortgage. So the only thing worrying me is that we would get rejected because of my CCJ. If this wasn't a stumbling block in a mortgage application then i may be tempted to leave it till after we sell. So i'm thinking its best for me to pay, also the interest would've increased the debt, its been 6 years.

terryw

OK. You can ask but it is unlikely that they will agree to remove the charging order unless the full amount is paid.

Even if you do pay the full amount, the ccj will remain on your credit record for six years from the date of judgment.

rizla_king

Yes paying it wont get rid of the CCJ.

philb82

The CCJ for this debt has already come off my credit file.

Do you mean the CO will remain on the land registry even after payment if the creditor doesn't agree to remove it?

If thats the case would i need proof that it has been paid off?

Phil