Charge on Property

xylophone

https://forums.moneysavingexpert.com/discussion/comment/76377980#Comment_76377980

You (your sons?) do need to find out whether the benefit of the charge passes to his estate as it is possible that with that benefit it may not be insolvent as they have declared to his creditors?

spidercrab

Thanks for all your comments. The charge literally says that the house will be sold when the children leave home. No time limit. There are no other stipulations so hopefully I won’t be forced to sell. I’m seeing a solicitor next week but as I was feeling so stressed I thought I would ask on here to reassure myself. Sort of feel better so thanks everyone.

G_M

Please quote the exact wording of the Charge.


Was there also an associated document, Deed,or written agreement, specifying for example, how much you would pay him.


If not, very strange! How can either he (were he alive) or his Executers (following his death) be made to remove the Charge when an unknown amount of money is apparantly owed?


Given that the Estate has debts (and few assets?), the Executers have a duty to maximise the value of the Estate and pay off as many debts as they can - that means ensuring that when you sell (no, you cannot be forced to sell) but when you sell, they receive the money from you before removing the Charge.


So..... how much?

spidercrab

Why is it so important I tell you how much. Does the amount matter?

jimbog

People on here really are trying to help spidercrab even if they seem to come across as being a little frustrated!

silvercar

I don’t know the answer to your question, but you won’t be able to complete a sale without removing the charge. So it may be easier to deal with it sooner rather than later. In say 10 years time it may be difficult to contact all the creditors of his estate to get agreement for the charge to be removed.

On the other hand, if your children are the beneficiaries of his estate it could be as simple as them agreeing to remove the charge when the time comes. Time for your own legal advice.

steampowered

A charge is a security for debt.

It is difficult to understand how you could have a charge on the property without also owing a debt or some other legal obligation to your husband. What agreements were signed alongside the charge?

A charge would secure the amount of money or other legal obligations which you owed to your husband.

Your husband's estate could enforce the charge up to that amount. The executor's of your husband's estate would have a duty to enforce the charge as much as possible. Are you the executor?

I do think it is impossible for anyone on here to comment because we would need more information regarding the documents that were signed in order to do so. If you do not wish to provide that information on a public forum you will have to wait until you see a solicitor - make sure you bring all relevant documents with you to that meeting.

AdrianC

spidercrab wrote: »

Why is it so important I tell you how much. Does the amount matter?

The overall picture may be helpful.
Are we talking about half of the value of the property?
Are we talking about a figure that you could raise by remortgaging?
Are we talking about a figure that won't even begin to clear the estate's debts?
Are we talking about a figure that's going to leave a substantial amount once the debts are cleared - and if so, who are the beneficiaries, your children?
Would any residue in the estate be sufficient to trigger an IHT liability...?

Who's the executor, and what's their attitude?

It may well be that the simplest solution is for you to pay enough into the estate to clear the debts, then the existing charge is replaced with one in favour of the beneficiaries.

Remember, the executor owes you no legal duty, but does have one towards the creditors of the estate - they're owed their money, and your charge may well be viewed as an asset of the estate, especially if it's as loosely worded as it sounds. If this all turns legal, then the main winners will be the legal fees.

MobileSaver

spidercrab wrote: »

Please only answer this if you know the answer as I’ve had so many people speculating over the last few weeks.

G_M wrote: »

Please quote the exact wording of the Charge.

As G_M says, all anyone can do is speculate until you reveal the exact wording of the charge.

spidercrab wrote: »

The charge literally says that the house will be sold when the children leave home.

I very much doubt that that is true - in fact it cannot be as "the house will be sold when the children leave home" does not infer any obligation on you to give any money to anyone.

You need to type out exactly what the charge says (obviously you can change specific amounts to £xx or xx% and any names to xxxxx etc) but no-one can give you any meaningful advice without knowing exactly what the wording relating to the charge is.

G_M

spidercrab wrote: »

Why is it so important I tell you how much. Does the amount matter?

You are right- the amount does not matter. But what matters is that there is a specified amount owed. Your initial post said:

I will give him a certain amount of money when I sell the house. The house and mortgage are in my name. This is a goodwill gesture and not regarding any money I owe him.

which simultaneously suggests you owe him an amount, and at the same time suggests you do not owe him anything.


Since removal of a Charge requires a debt owed to be paid off, it is relevant exactly what has ben (legally) agreed. Hence continued requests for you to quote.


But by all means blank out the exact figure.