Equitable charge

Babybear16

Please excuse I've posted it here too, I didn't know where to put it.

Hello,

I hope someone can help and I'll keep it as short as I can.

Okay, in 2010 I had an unsecured loan through Natwest which I became unable to pay due to serious personal circumstances. Natwest advised I take out another loan which would have lower repayments. I naively said yes and ended up with an equitable charge on my home.

Our situation is now much better and our credit score is back to excellent. We have decided to sell our property and I checked the land registry last night, where this charge was found. I'm so gutted, it would take a large part of our equity. I've been paying it monthly since it was lodged albeit a small amount.

My question is this:

Is this charge definitely enforceable on selling our property? I read that if it was placed before a certain year they can't ( please bear with me if I'm wrong, I'm not clued up on this at all.)

If it is, am I able to offer a settlement figure rather than be stung with the whole amount?

If I have to pay it then so be it, if just like to know if there are any other options.

Thank you for an advice, I really appreciate it x

National_Debtline

Hi Babybear and welcome to MSE,


From what you have described you appear to have taken out a secured loan. If that is the case then I am afraid this would have to be repaid in full upon the sale of the house. They are extremely unlikely to consider any sort of settlement figure as it is, effectively, a 2nd mortgage and sale cannot complete without it being cleared. If there is not enough equity in the house to clear all secured borrowing then the lenders can actually object to the sale.


I am not aware of any reason why a loan like this would be unenforceable I am afraid.


Laura
@natdebtline