Father places Charging Order on My Property

Carol1604

Hello all. This is in the UK. I’m not if fact worried about this as such but would like to understand the position I am in. My mother died and I started looking after my elderly father who was in rented accommodation. He has a significant amount of money and instead of living in my 3 story town house, wanted to live in a flat that was on a ground floor and suggested he bought a property in my name and I shared it with him whilst looking after him. I was happy with this arrangement and the fact that he would purchase the property. Following purchase in my sole name and without any agreements in writing between us everything ran smoothly.

I am a divorced woman and had been on my own but following the arrangement of the house purchase, by chance, I met someone and then things changed as my father became enraged because he did not received 100% attention from me. I feel that perhaps I had become like a replacement wife to him. He then threatened to throw me out unless my friend was rejected by me. Anyway, things became intolerable and I was forced to move out and find alternative accommodation. By this point, I had rented out my own home so could not return there and now pay out more each month than when I was in my own home.

Following my departure he demanded that I gave the house back to him and I said it was his anyway and from my point of view, legal ownership mattered little. Consequently, I received a letter from his solicitor saying I should be fair and sign the house back over to him. I did not reply as I was not in a financial position to seek legal advice as I was now having to rent a property myself. After about a month I received a letter from the land register body saying that a charge order was to be placed on the property. Again, I’m not in a position to pay for legal advice so left the matter alone.

Following this letter I received a nasty note through my door from my father say that he was going to make me suffer for my actions and deserting him.

I don’t understand what the legal implications are in a situation like this. It would not be my intention to kick my father out but could this mean I need to find money to pay for a house I’m not sure I even own now should my father die.

silvercar

Anyway, things became intolerable and I was forced to move out and find alternative accommodation. By this point, I had rented out my own home so could not return there and now pay out more each month than when I was in my own home.

So where was your father living? Who is paying the mortgage? Could you move back in?

"What is a charging order

The application for a charging order always has two stages. These are an interim order and a final order.

An interim charging order is usually granted by the court to stop you from selling your property before the final order can be made without your creditor knowing.

If a court grants your creditor a final charging order, this means that if you sell your property, you must pay your creditor back out of the proceeds.

If your creditor gets a final charging order, this doesn't mean you will have to sell your property. If your creditor wants to force you to sell your property, they will have to apply to the court for a further order called an order for sale.

You can argue against your creditor being given a final charging order or an order for sale. You can also ask for conditions to be attached to a final charging order which make it harder for the creditor to force a sale."

hcb42

this is hard to follow, but sounds like you should not be ignoring these comunications

If you buy a house, i am not sure how you have relinquished ownership, so this is rather confusing

AdrianC

The house is yours, legally. The charge normally can't be registered without your agreement, but have a read of this as to unilateral notices.

https://www.gov.uk/government/publications/notices-restrictions-and-the-protection-of-third-party-interests-in-the-register/practice-guide-19-notices-restrictions-and-the-protection-of-third-party-interests-in-the-register#notices

If he does register a charge, and dies before it's removed, then you may need to repay the amount due (presumably, the value of the house) to the executor of his estate or the beneficiaries, if that's not you.

Meanwhile, and it's totally irrelevant to your question, but is there a reason you don't just give your tenants notice and move back in to your own place...?

Mojisola

Carol1604 wrote: »

He has a significant amount of money and instead of living in my 3 story town house, wanted to live in a flat that was on a ground floor and suggested he bought a property in my name and I shared it with him whilst looking after him.

Following purchase in my sole name and without any agreements in writing between us everything ran smoothly.

Following my departure he demanded that I gave the house back to him and I said it was his anyway and from my point of view, legal ownership mattered little.

Legal ownership matters a great deal.

If you consider the flat to be his, why wouldn't you change the deeds?

ViolaLass

If you feel it's his house, why not agree to sign it back to him?

Carol1604

There is no mortgage on the property as it was paid for outright..

Carol1604

Okay, I see how this forum posting work. Right, my father started living with me in my 3 story townhouse and due to the stairs, suggested that we both moved to a ground floor flat. He was in rented with mum before she died and they preferred it that way as a landlord would deal with any problems to do with the property.

As I said, my father wanted to buy the flat and suggested it be in my name and pointed out I may as well receive the benefits now. As I said, that was fine but it was not suggested by me and I applied no pressure. Also, there is no mortgage.

Some may consider that I should just sign the paper so that the property becomes his and his alone but having said that, I am disappointed that just because I developed a friendship my father should turn and make live unpleasant for me. It's not a matter of me holding on but more one of principle.

I honestly tried to help my father and I feel that when things did not go his way and he receive 100% of my time, he wanted to change everything. My own house I rented out and the agreement for the tenants was 12 months and that was renewed about 5 weeks ago.

AnotherJoe

It's still inexplicable why you haven't signed it back to him, you are just going to burn up a lot of money in legal battles. I don't know what the "principle" you talk about is, cut your ties and give it back to him.

Experts may point out if there are any CGT implications here from you owning the flat/ house . I think there may be.

That should be the only thing that needs sorting out.

xylophone

You own a town house and were occupying it until your father suggested that you should live with him in a flat which he would buy in your name?
You rented out your property?


There was no written agreement to show whether the flat was a gift to you or a Trust arrangement whereby you were the legal owner but he was the beneficial owner?

You lived with him in the flat until he took umbrage at your relationship with a person of whom he did not approve - you moved out into rented accommodation because your own town house was tenanted?

Your father wants you to sign over the flat to him on the basis that he provided the money and always regarded the flat as his - a constructive trust?

Has the charging order been registered against the flat or your house?

It seems to me that you need to establish whether or not you are both the legal and beneficial owner of the flat and should take advice from a solicitor.

silvercar

CGT:

If you have let your for any time then there may be CGT implications when you sell it. General advice is the smaller the time it was let as a proportion of the total time you have owned it, the less likely there will be any CGT to pay.

So that is your townhouse in the clear (probably).

As for the flat. If you have lived in it as your main home for all the time you have owned it, then CGT is not an issue. However, if you have lived elsewhere for a long period of time (compared to total ownership time) then there would be a CGT implication on sale or on transfer to your father. In particular, transfer to your father will be deemed to have been done at market value as you two are connected.
I don't know how long this saga has been going on, but the last 18 months of ownership would be an exempt period, so transferring sooner rather than later would help. Also you have a CGT allowance (currently £11,100).