Welcome Finance - charge on property

vinniewilliams

Hi, I wondered if anyone would be able to help. My partner took out a secured loan with Welcome Finance in 2006. In 2007 he was made bankrupt, and Welcome Finance was included in his bankruptcy. For 3-4 years he did not have any contact with Welcome Finance. Last year he received a letter from a company called MKDP LLP, who were demanding he contact them to arrange payment of the £22k loan. We were not in a financial position to start making payments back to them. I contacted the Land Registry service in our area to enquire whether there is a charge on our property, and it seems that there is a charge on the property from this company. We are in the process of selling the property due to financial circumstances, and have been advised that if this company MKDP LLP can't provide us with a copy of the original loan agreement then the debt is void. I just wondered if this is true. And also if Welcome Finance had put a charge on the property in the first instance, should we not have been advised by the land registry that the charge was now in the name of MKDP? Many thanks

thebritishbloke

Someone else should be able to confirm this, but the debt should be both statute barred (because it was so long ago) and if it was included in his bankruptcy they shouldn't be allowed to try and reclaim anything extra from you...

dealer_wins

Its a secured loan, with a charge on your property. Unless the lender is incompetent you cant avoid payment!

PeacefulWaters

thebritishbloke wrote: »

Someone else should be able to confirm this, but the debt should be both statute barred (because it was so long ago) and if it was included in his bankruptcy they shouldn't be allowed to try and reclaim anything extra from you...

You will find that loans secured on property aren't quite the same.

pvt

Vinnie,

If it was a secured loan then the mortgagee will be able to recover their money when the house is sold. The bankruptcy will have no bearing on it, nor will suggestions that it is statute barred.

The transfer of name will not be relevant, and I doubt you will be able to wriggle out of this by hoping the original mortgage deed cannot be found or produced.

Put simply, the charge on your property at the Land Registry can only be removed by the holder of the charge, the lender or mortgagee. It is very secure for the lender, which is why it is called a secured loan.

I don't know your exact circumstances, and whether your home is jointly owned, though I suspect it must be because otherwise I would have expected the mortgagee to have foreclosed (forced the sale of your house to get their money) at the time of your bankruptcy.

Land_Registry

Whether you are notified of any change re the registered details would depend on how the 'charge' is registered and what change then occurred.

Is the charge a registered charge or has it been registered as a notice or a restriction perhaps?