Property with a charge on it.

headlad

My mother owns 1/3 of her flat.
The other 2/3s, are owned by a building company and has a charge on it, the company went bust and is now in the hands of a receiver.
After a number of years the receiver now wants to sell the charge and has offered it to me.
If I buy the charge am I buying the other 2/3s of the property or am I just buying the debt?
Can anyone advise or help .... Please

AdrianC

I think you're confused.

Did the building company actually OWN 2/3 of the property, or did the have a charge for 2/3 of the value? They can't do both.

A charge means that they are owed that amount from the proceeds of any sale - obviously, if they already own it, the charge would be against themselves.

If it is a charge, then you're paying off the debt, and the receiver will remove the charge. You may find they'll take an offer of a reduced amount, so that they can tick it off their list of outstanding debts.

G_M

You cannot buy a Charge.

You can pay off a debt on which the Charge is based, and then have the Charge removed. Is that what you mean?

However you started by saying "The other 2/3s, are owned by a building company." If this company owns 2/3s of the property then a Charge would not be required and yes, you could buy that 2/3s (based on whatever the market price for the property is.

Have a look at the Land registry Title.
* In section 1 (Ownership) who is listed as the owner?
* In section 3 (Charges) what Charges are shown?

nb73

Is the charge in favour of the builder's lender perhaps?

What exactly are you being offered and why are you being offered it rather than your mother?