Charging Order Letter - Ex's Debt

Austinhead · 21 September 2017 at 1:12PM

My ex moved out several weeks ago. We had agreed that I would buy him out of the house and take on the mortgage. I have given him half of the equity as agreed and he is renting a different property.

Last week I received a letter from the land registry informing me that a charging order had been applied for on the property due to my ex. This took me by surprise (although I was well aware of his debt issues).

I really need some advice as to what to do. My plan is to object to the order, giving details around the date he moved out, the agree sum of money given to him, how it was calculated ( I had the house valued) and proof that the money has been given to him. I am hoping that this will be sufficient to stop the charging order.

I am still in the process of moving the house to my name, as am undecided as to get a remortgage or just remove his name from the mortgage (separate thread started for this). I am guessing this will be all be halted due to the charging order - but again, have no idea.

I need to respond by the 2nd Oct.

Any advice would be very very gratefully received, as the prospect that this could go ahead fills me with total dread. I have worked very very hard to repay my debts and get myself back on track.

Keezing · 21 September 2017 at 2:34PM

If the property was in both your names but the debt only his, then a charging order cannot be applied, only a "restriction". This is an important distinction.

Do you know any more about the debt?

Austinhead · 21 September 2017 at 2:36PM

It's his debt only. I think it's from a cahoots loan.

Keezing · 21 September 2017 at 2:40PM

Would you consider selling the property? This would be the cleanest way to break from your ex

Austinhead · 21 September 2017 at 3:13PM

No. I've got 3 kids who are all settled, I've spent some time and money on improvements since he left and have no desire to move.

National_Debtline · 21 September 2017 at 3:30PM

Hi Austinhead,

You will need legal advice on this situation. I appreciate that you and your ex have made an arrangement to separate your finances but unless something was legally drafted to this affect, I am sorry to say, it is unlikely you will be able to stop the charging order.

You can still file your objections, and attend the hearing and put the situation to the court as it will ultimately be at their discretion. If you were to then try and put the mortgage into your name, this would need to be paid off before that transfer can happen. So, again, you would need legal advice about how you go about reclaiming this from your ex as you have already given him his share of the equity.

Laura
@natdebtline