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Charging order & remortgage - Advice Please!
piganeiros
Posts: 5 Forumite
I'm new on here so apologies if this is covered on another thread.
My home is currently has been mortgaged with Nationwide for about 15 years and I have had a remortgage accepted with NatWest.
Several years ago my ex-wife and I consolidated our loans through Nationwide. This loan was in joint names. We got into difficulty repaying the unsecured loan and friendly old Nationwide applied for a charging order. We went to court and explained that we were under a debt management plan, the judge was sympathetic (and admonished Nationwide because they were included in the DMP) and threw the order out of court.
Unfortunately they were very persistent and tried again. The second time around the charging order was granted.
The solicitors who are arranging my remortgage have been in contact to say there are 2 cautions on my property which need to be dealt with, dated July and Oct 2002. There can only be one, the fact that there are 2 is presumably an admin error on Nationwide's part which will no doubt be a nightmare to unravel, but this is not the reaosn for my post.
My question is this...
The Nationwide mortgage was only ever in my name and my ex-wife never had an interest in the house. The unsecured loan was in joint names and the whole amount has been applied to my house as a charging order.
I understand that the CO must be cleared before my new mortgage can proceed, but technically were Nationwide correct to apply a CO for the full amount to a property in which only one of the parties had an interest? i.e. can I challenge the legality of the CO in its entirety, or can I pay half the amount and the balance of the debt passes to my ex-wife?
Its only about £2000 and I have budgeted to clear this but obviously if I can get away without paying this (or paying as little as possible) then I will do.
Thanks
My home is currently has been mortgaged with Nationwide for about 15 years and I have had a remortgage accepted with NatWest.
Several years ago my ex-wife and I consolidated our loans through Nationwide. This loan was in joint names. We got into difficulty repaying the unsecured loan and friendly old Nationwide applied for a charging order. We went to court and explained that we were under a debt management plan, the judge was sympathetic (and admonished Nationwide because they were included in the DMP) and threw the order out of court.
Unfortunately they were very persistent and tried again. The second time around the charging order was granted.
The solicitors who are arranging my remortgage have been in contact to say there are 2 cautions on my property which need to be dealt with, dated July and Oct 2002. There can only be one, the fact that there are 2 is presumably an admin error on Nationwide's part which will no doubt be a nightmare to unravel, but this is not the reaosn for my post.
My question is this...
The Nationwide mortgage was only ever in my name and my ex-wife never had an interest in the house. The unsecured loan was in joint names and the whole amount has been applied to my house as a charging order.
I understand that the CO must be cleared before my new mortgage can proceed, but technically were Nationwide correct to apply a CO for the full amount to a property in which only one of the parties had an interest? i.e. can I challenge the legality of the CO in its entirety, or can I pay half the amount and the balance of the debt passes to my ex-wife?
Its only about £2000 and I have budgeted to clear this but obviously if I can get away without paying this (or paying as little as possible) then I will do.
Thanks
0
Comments
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they can go after either party, so yes they are allowedDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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The position is that they can pursue either party for the full amount.
You are liable for the full amount. Joint and several liability. Nothing else to add.0 -
Thanks both (despite the response I was hoping not to get).
I was half expecting the "joint and several liability" but thought there may be some special rules around charging orders.
Oh well, looks like they get their money in the end. At least I knew this was coming and have budgeted for it.
Been reading up on the CO process, do you think the first order (from July 02) would be an interim order which never got withdrawn when it was rejected? I'm speaking to their "Admin team" tomorrow but I'm not expecting them to be helpful despite the fact they will be getting their ten pieces of silver.0 -
piganeiros wrote: »I was half expecting the "joint and several liability" but thought there may be some special rules around charging orders.
The debt would only come out of your share of the equity . Given you are the sole owner makes no difference.0
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