Charge on a house

pauljason

Ah! That is great David, thank you so much, it really helps to understand the situation.

Exodi

For someone who deems it "not a problem as in what is owed", it's interesting that you seem to be exploring every possible loophole to weasel out of paying the loan back?

If abc ltd are the new owners of the debt, pay them? What else is there to it?

verybigchris

If I owed a debt to one company, and another company comes along and claims I have to make payments to them now instead, I'm going to be making damn sure it's all above board before I hand over any money.

In OP's shoes I'd be writing to the lender asking for written confirmation of the debt being transferred (ideally in the form of an updated contract) and writing to the liquidator to ensure it's all okay. I wouldn't pay a penny to the new company until I had everything in writing and was satisfied with the responses.

steampowered

There is only a "legal assignment" where the borrower has been formally notice of the assignment.

Before you have received a "notice of assignment", the debt is payable to XYZ Ltd.

After you have received a "notice of assignment", the debt is payable to ABC Ltd.

Therefore, your father should not pay ABC Ltd directly before he has received a "notice of assignment".

If the "friend" is a bit of a jack the lad he may not have transferred the debt properly, which is not a valid transfer at all.

As you correctly point out, the charge is in the name of XYZ Ltd. If the debt has been transferred, the charge should also be transferred and registered with the land registry. Otherwise there are going to be problems if your father ever wants to sell or mortgage the property.

In the circumstances, I would not make any further payments before clarifying the position. I would contact the liquidators of XYZ Ltd to enquire as to whether they were aware of this assignment and whether the charge will be transferred.