Registered charges

Mmmmmmmmmm

Hi, I am second charge holder on some property. My registered charge document includes a final payment due date (the payment was due last year) the person who owes me has not paid. The first registered charge does not have a payment due date. I have been chasing the money I am owed via my solicitor but I still.haven't had the payment. The first charge holder has recently taken over 'power of sale' on the property, they have not repossessed. Does anyone on here know anything about registered charges? Do I have any rights? Does the fact my payment was due before the first charge holder in terms of date help me at all. The first charge holder has interest creeping up. Is there anything I can do? There is another part to this, the person who owes me the money also stole some of my other land by encroachment. He said he needs this extra land to sell the property. I have proved ownership by having a laser survey, he has now admitted he stole my land in writing, via his solicitor. This has been going on and on which is why its been a year since the money was due. What can I do?

ACG

First Charge gets the first lump sum of money.
Second charge gets there money if there is anything left after the first charge gets paid.

Speak to your solicitor. This is far too complex for a forum and with thousands (if not tens of thousands) of pounds at stake, you probably want to get it done right.

Mmmmmmmmmm

Thank you for your speedy reponse 😊 i did know about the first charger being paid first but my charge effectively ended last year and was due an immediate payment. The first charge holder does not have an end date so should have been paid after mine. The wording in my charge states that the money is due immediately on the given date...that was last year. All my solicitor is doing is running up expensive fees by sending lots of letters that get unanswered. The person who owes me has now had to use a different solicitor as he hasn't paid the first one. I have heard from the first charge holder, they have realised they need the extra (stolen) land to sell the property as it affects access and boundaries close to windows. I have told them they need to pay the original charge owed to me otherwise I won't sell. It certainly is complicated! I've posted this because I have wasted money on solicitor fees and got nowhere, hoping someone might be able.to suggest what I do next. Maybe not selling the extra land will protect me?

ACG

There is obviously far more to this as you do not usually lend money to someone who steals your land.

However, you really need to stop sending letters and start court proceedings. Keep a record of all of the costs and add it to your bill. Maybe give your solicitor a kick up the backside or find one who has some teeth and will get the ball rolling.

Is interest accruing on your debt? If not, then there is no incentive for him to clear the debt. Telling him legal fees are going to be added to the debt might motivate him.

It might be worth getting an idea of how much equity is in the property first.

Mmmmmmmmmm

Thanks, just for info, he stole the land after he set up the charge with me. Before I have to take him to court, I want to find out what rights I have. I don't understand what the 'power of sale' status for the first charge holder means. Is is just that, they can organise the sale of the property, or are there other rights they have?

davidmcn

Mmmmmmmmmm wrote: »

I don't understand what the 'power of sale' status for the first charge holder means. Is is just that, they can organise the sale of the property, or are there other rights they have?

It means they can repossess it and sell the property in the usual way that mortgage lenders do. If there is a surplus from the proceeds of sale after all of their debt and costs have been repaid, you get the next bite at the cherry for anything owed to you, and then the debtor gets any remaining surplus. The due dates of repayment have got nothing to do with how the charges rank.

If they "need" to do a deal with you about the adversely-possessed bit of land to sell their property then obviously that helps your position, though it's also possible they might prefer a quick sale and stick it into auction as it is to see if a buyer is willing to take on the risk.

silvercar

I would have thought you could go to court for repossession. You would then "possess" ie evict the current occupier and sell. The proceeds of the sale would then be first used to clear the first charge on the property with any remaining going to you.

Obviously this means you may not get as much back as you need to to repay all you lent, but it does stop the interest on the first charge mounting. Not worth doing if the charges and amount owed on the first charge holder won't leave you with anything worth fighting for.

Thrugelmir

Mmmmmmmmmm wrote: »

or are there other rights they have?

Hasn't your solicitor run you through the various scenarios with you?