how to buy a house with equitable charges

lucazoi

Dear all,
me and my family are actively looking into buy our first property, but facing difficulties as in our location (Cambridge) there is an incredible speculative property market, with cash buyers, investors and the basically all houses sell way over the asking price, in just one week! Off course agencies go for the money, as they get a good cut.
Since we moved here 5 yrs ago, one property very close to where we are renting, has always been empty and in advance state of disrepair. Apparently there are some equitable charges on it...see land registry at the bottom. I also guess the owner must have disappeared somewhere?!? in order not to pay his debt?

My question: how should I proceed if I want to buy this property? is this worth an attempt at all?
is the idea: I pay off your debt and you sell me the house for a good price, standing?? (bear in ming I have no idea how to trace the owner...)
Can you please explain me what the charges on the land registry actually mean?

Many thanks for your time and help.
Kin Regards,
Lucazoi

B: Proprietorship Register
This register specifies the class of title and
identifies the owner. It contains any entries that
affect the right of disposal.
Title absolute
1 (26.04.1985) PROPRIETOR: Smith John, Cambridge.
C: Charges Register
This register contains any charges and other matters
that affect the land.
1 (07.01.2005) REGISTERED CHARGE dated 6 January 2005.
2 (07.01.2005) Proprietor: CAMBRIDGE CITY COUNCIL of The Guildhall,
Cambridge, CB2 3QJ and of DX5854
3 (07.01.2005) REGISTERED CHARGE dated 6 January 2005.
4 (07.01.2005) Proprietor: CAMBRIDGE CITY COUNCIL of The Guildhall,
Cambridge, CB2 3QJ and of DX5854
5 (16.03.2005) REGISTERED CHARGE dated 14 March 2005.
6 (16.03.2005) Proprietor: CAMBRIDGE CITY COUNCIL of The Guildhall,
Cambridge CB1 3QJ and of DX5854
7 (17.06.2005) Equitable charge created by interim order of the Cambridge
County Court dated 7 June 2005 in favour of HSBC Bank PLC.
NOTE: Copy filed.
8 (13.11.2007) Equitable charge created by an interim charging order of
the Cambridge County Court dated 5 November 2007 in favour of Hillesden
Sec Ltd (Egg Banking PLC).
NOTE: Copy filed.
End of register

davidmcn

I wouldn't focus on the charges - any sale involves the seller getting enough money to pay off registered debt, whether that's a normal mortgage or something else. Your main initial problem is tracing the owner.

eddddy

I'm not sure if I'm reading your post correctly. You seem to be saying that you've seen a run-down property (which isn't for sale), you want to approach the owner, make them an offer - and hopefully buy it cheap.

If so, I guess that could work, but it's very unlikely.

It's difficult to imagine that somebody would just sell their property to the first stranger that sends them a letter and makes an unsolicited low offer. So I wouldn't raise your hopes too much.

AdrianC

lucazoi wrote: »

Dear all,
me and my family are actively looking into buy our first property, but facing difficulties as in our location (Cambridge) there is an incredible speculative property market, with cash buyers, investors and the basically all houses sell way over the asking price, in just one week! Off course agencies go for the money, as they get a good cut.

Agencies don't accept offers. Sellers do.

You seem to be suggesting that individual sellers should accept lower offers than they could get, simply to help random strangers out.

Would you do that if you were selling...? No, thought not.

Since we moved here 5 yrs ago, one property very close to where we are renting, has always been empty and in advance state of disrepair. Apparently there are some equitable charges on it...see land registry at the bottom. I also guess the owner must have disappeared somewhere?!? in order not to pay his debt?

My question: how should I proceed if I want to buy this property? is this worth an attempt at all?
is the idea: I pay off your debt and you sell me the house for a good price, standing?? (bear in ming I have no idea how to trace the owner...)
Can you please explain me what the charges on the land registry actually mean?

Many thanks for your time and help.
Kin Regards,
Lucazoi

B: Proprietorship Register
This register specifies the class of title and
identifies the owner. It contains any entries that
affect the right of disposal.
Title absolute
1 (26.04.1985) PROPRIETOR: Smith John, Cambridge.
C: Charges Register
This register contains any charges and other matters
that affect the land.
1 (07.01.2005) REGISTERED CHARGE dated 6 January 2005.
2 (07.01.2005) Proprietor: CAMBRIDGE CITY COUNCIL of The Guildhall,
Cambridge, CB2 3QJ and of DX5854
3 (07.01.2005) REGISTERED CHARGE dated 6 January 2005.
4 (07.01.2005) Proprietor: CAMBRIDGE CITY COUNCIL of The Guildhall,
Cambridge, CB2 3QJ and of DX5854
5 (16.03.2005) REGISTERED CHARGE dated 14 March 2005.
6 (16.03.2005) Proprietor: CAMBRIDGE CITY COUNCIL of The Guildhall,
Cambridge CB1 3QJ and of DX5854
7 (17.06.2005) Equitable charge created by interim order of the Cambridge
County Court dated 7 June 2005 in favour of HSBC Bank PLC.
NOTE: Copy filed.
8 (13.11.2007) Equitable charge created by an interim charging order of
the Cambridge County Court dated 5 November 2007 in favour of Hillesden
Sec Ltd (Egg Banking PLC).
NOTE: Copy filed.
End of register

It means that it has been used as security for three charges in favour of Cambridge Council, and two ordered by a court - one in favour of HSBC and one in favour of a company acting on behalf of Egg bank (probably a credit card debt). The property can't be sold unless those debts are cleared. I would suspect the three for the council are probably council tax-related. Any of those charge-holders could probably push for the property to be sold, but they've not done so.

My suspicion would be that the property is owned mortgage-free by somebody, and that those charges are relatively small in relation to the value of the property, so it's unlikely such a court order would be granted.

Cakeguts

As there are no more charges after 2007 this means that the owner must be paying the council tax. So the owner hasn't disappeared. There are lots of reasons why property remains empty. There are also legal reasons why property that is empty cannot be sold. One that comes to mind is where someone dies and the will is very complicated to sort out.