Can I sell if my ex has a charge on the property?

pattym30

Basically I need to know if I am able to sell the house myself and my son live in if there is a registered charge on the property for my ex wife.
We are divorced, she has a 30% interest in the proceeds of sale only. She is not on the deeds but her name is still on the mortgage. She left when my son was 4 he is noe 11.
She is of the impression I can only sell if she allows this. I on the other hand am of the underdtanding that I can sell as long as she gets her agreed 30% as agreed in the divorce settlement.
Any advice/info would be helpful.

paddedjohn

As far as I know the charge on the property only allows the right to be paid out when the house is sold, she has no rights to the property or how you dispose of it as long as her debt is settled.

AnotherJoe

That's my understanding as well, the charge is there to ensure the party in question get what they are due, not to prevent it being sold. After all,a mortgage co will have a charge on your property but they don't control if you can sell it.

moneyistooshorttomention

I think she's either telling you porkies or she hasn't understood the position.

As long as she gets her share of the proceeds - thats that.

AdrianC

She's mistaking a 30% charge for 30% ownership.

You say there's a mortgage - so it can't be a first charge, because the lender will have that.
If it's a second charge, is it an absolute 30%, or 30% of what's left after the first charge is satisfied?
If it's an absolute 30%, then what happens if there's not enough equity after the mortgage is repaid?

AnotherJoe

Great point, you need to understand what the 30% means unless its just teh wording here and everyone understands that.
Logically it should be, whats left after mortgage is settled.
Hopefully the divorce papers make this clear.

pattym30

There is enough equity available to clear the existing mortgae & pay her her 30%. The divorce settlement states she gets 30% of the proceeds of sale after the outstandinf mortgage has been cleared & any solicitor costs. I think she is trying her luck.

AdrianC

pattym30 wrote: »

There is enough equity available to clear the existing mortgae & pay her her 30%. The divorce settlement states she gets 30% of the proceeds of sale after the outstandinf mortgage has been cleared & any solicitor costs. I think she is trying her luck.

So it's definitely 30% of what's left?

Let's say the property sells for £200k, and there's a £100k mortgage, she would be due £30k.

TBagpuss

You can sell, but she will need to sign a discharge to release her charge, in order for you to give unencumbered title to the buyer, so you need to make sure that she understands and will do this, before you exchange contracts.

You also need to check what your order says, I would expect her charge to be for 30% of the value of the property (not of the net equity) as that is more usual, but the other thing to be clear about is how the house is valued and whether there are any provisions for her to have to agree the asking price or any other details of the sale.

If she is not clear about the mechanisms for a sale you may need to arrange to have a formal letter sent to her.

Do you know why she thinks she needs to give permission? Does she not want you to move? It seems strange that she would not want to be paid her share of the funds

marksoton

TBagpuss wrote: »

Do you know why she thinks she needs to give permission? Does she not want you to move? It seems strange that she would not want to be paid her share of the funds

One word. Control.

pattym30

Well I have finally managed to speak to the mortgage company and she is correct. She has to sign a letter allowing the sale of the property. It is definatly 30% of the equity after mortgage has been redeemed but it looks as though she can prevent us from selling if she does not sign to allow it.
Nit what I was hoping to hear!!!