trying to help my son..

bobbymotors

Hello all


My son and his wife jointly own their house which is mortgaged and they are paying this on an interest only basis. This mortgage represents about 70% of the current value.


Due to there being a second charge on the property which I hold (I lent them some money a few years ago) which is NOT being paid in any way and which attracts interest there is no real equity in their property and no real likelihood of there being any in the near future. for the record I am NOT bothered in the least about getting any money from them for the loan I made him (he's my son!) and if in future he wants to sell etc I will walk away from my money (£65k + interest)


He got into trouble buying another property to rent out and could not keep up the repayments. He handed the keys back and eventually got a CCJ (presumably) and charging order / restriction for the outstanding balance which is some £88,000. This debt is his only and nothing to do with the daughter in law.


There is no interest being charged on this £88000 and he is making token payments of £40 a month, so will be clear in about 190 years then...!


The second charge precedes the restriction / CO, which is handy I guess. The restriction / CO reads as follows:


(XXXX.2010) RESTRICTION: No disposition of the registered estate, other than a disposition by the proprietor of any registered charge registered before the entry of this restriction, is to be registered without a certificate signed by the applicant for registration or their conveyancer that written notice of the disposition was given to XXXXXXXXXXXXXX at care of XXXXXXXXXXXXXXXX, being the person with the benefit of an interim charging order on the beneficial interest of XXXXXXXXXXXXXXX made by the XXXXXX County Court on XXXXXXXXXXXXX 2010 (Court reference XXXXXXXXXX).


From reading elsewhere on here, because the debt is his only and the family home is in joint names then if they want to sell (they don't) then as long as they use a properly aware solicitor the CO/ restriction falls away when they sell (but the debt remains)


I have told him they cannot touch him or get an order for sale (3 grandchildren, 7,9 and 12)


However the thought of this hanging over him has made him get very down about it all and he just wants it to go away.


To effect this he has written to the mortgage company that have the CO/ restriction and offered them firstly 5% then 10%then 12.5% of the £88000 to settle it fully and finally - I will give him any settlement money once agreed.


But they have point blank refused each time.


What's the best way forward? All ideas welcome!


Thanks in advance

somethingcorporate

No creditor in their right mind would take such a tiny amount of the outstanding loan. 12.5 p in the £ is very low.

He should take advice from one of the debt charities.

bobbymotors

thank you somethingcorporate.


Bearing in mind they are getting £40 a month and we have offered them over 20 years payments to settle it I guess I was thinking that we all have to start somewhere!


What do you think would be an appropriate % to offer?