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Land_Registry

Thanks for posting again Sam and an interesting response from us.

We would not normally need an acknowledgement from HFC or NR re receipt of the notification - remember it is the wording of the restriction which matters here and you have their name and address for both HFC and NR so you would notify them by recorded delivery (or some other means of secure post as appropriate so you have proof of delivery. That then gives the conveyancer the ability to provide the certificate as required by the restriction's wording as well.

We would be unaware of whether the interim order had been made final as that would be dealt with by the courts. And it is very rare for a creditor, who obtains a final CO, to then apply to register that as well as the interim as they essentially protect the same interest albeit at different stages in the CO's life span.

Sam_Arthur

I have emailed. Thank you.

eggbox

Sam_Arthur wrote: »

I have spoken to the land registry and they have stated that the interim charging orders as they appear would only require HFC and NR to acknowlege that they are aware of the sale, they could not confirm however if the creditors could refuse to acknowledge or let the sale go ahead or even if the interim charging orders as recorded have since become final which is worrying

It's difficult for the Land Registry to confirm/deny certain things as they cannot be seen as giving legal advice. Often you have to ask a question in a certain way to get the answer you require (difficult to understand when you first encounter but it get's easier once you understand the no legal advice part)

That said, the acknowledgment from creditors is irrelevant as the wording of your Restrictions, as you have indicated, does not require it. Regarding letting the sale go ahead, the creditor has no direct ability to block a sale it only has recourse back to the Courts to obtain a Freezing Order (but see post #18 as to why this is a no no for the creditor)

Many creditors, also, don't bother with proceeding with a Final Charging Order against a joint owner/sole debtor situation. This is because a FCO only produces the same result as an Interim Charging Order in respect of a Restriction being registered. As registering a FCO costs legal fees many don't see the point of proceeding to that stage?

However it came about, the fact is that a Form K Restriction provides very little security for the creditor to recover it's debt upon the sale of a house if the debtor chooses not to settle the debt at that point. It is only the wishes of solicitors and conveyancers to keep handing over their (paying) clients money that keeps the system intact. Which is why you need to research what you conveyancer knows before you employ them.

Sam_Arthur

Thank you eggbox, you have been very helpful, one last question if I may how do I know that the restrictions are "Form K Restrictions", is it due to the wording?

Sam_Arthur

For information NR did confirm (telephone, not in writing) that there interest in the property was secondary to the mortgage and that any outstanding balance of there loan would be subject to renegotiation (I am already paying £100. PCM and have done so since 2007).

eggbox

Yes the wording you have indicated is a Standard Form K

NR haven't got any interest in your property, the CO they acquired is against your "Beneficial Interest" (or equity). Never, EVER believe anything creditors tell you as they will always try to LEAD you into believing they have all the aces - they don't.

Quite what they mean by re-negotiation is a mystery as a lot of creditors take a huge drop in the value of the debt to get it settled rather than waiting donkeys years for the debtor to sell up? (And £100 PCM month since 1997 is over £20,000?? how much is the Charging Order for?)

Sam_Arthur

Sorry have edited the post it was 2007, the initial amount was around £11000.00 and is now around £4000.00. I assume by renegotiation they mean an expenditure or earnings to see if I can pay more, they have in the past threatened me with attaching it to my wages, nice guys.

Also is HFCs restriction against my wifes beneficial interest?

eggbox

Well, to give you a contrast to your own situation; my ex had a CO (Restriction) placed for £12000 in 2010 - she's paid approximately £60 off the debt (£1pcm) and has no intention of settling the debt when our joint house is sold (which is mainly because MBNA pushed her rate up to 30% APR when she was NOT in default but that helped push her in to default)

She's been threatened with attachment of earnings and an order for sale but, as she understands these are virtually impossible for a creditor to obtain, she's just told them it's £1pcm or nothing. No action has ever followed so don't fall for the tactics these people employ.

eggbox

Sam_Arthur wrote: »

Also is HFCs restriction against my wifes beneficial interest?

Yes it is.