Charge on Property

xylophone

They initially took on the role but although he had no property or assets, it turns out he has very large debts which have been passed to a debt collection company of dubious reputation.

He did have an asset - the charge on your property.

https://www.begbies-traynorgroup.com/articles/insolvency/what-is-an-insolvent-estate

I am wondering whether his creditors will be able to register a charge against the property.

As both your sons are in their twenties, either could choose to set up home on his own at any time.

Are you in a position to remortgage if it should come to it?

Slithery

spidercrab wrote: »

...and the wording is pretty much when the first of our children leave home permanently I will sell the house and give him £50,000...

You've been asked several times now...

Until you post the exact wording none of us can give you any accurate advice - 'pretty much' just isn't enough information.

00ec25

spidercrab wrote: »

Therefore, I’m obviously going to be stuck with some legal bills.

yes, you are

it is pointless to start a thread asking for legal advice on a general internet forum when:

a) no qualified lawyer is ever going to answer on a forum post in a way that gives you the info you are looking for since they are not in a position to advise you on a professional basis as there is no formal relationship with you.

b) you have drip fed info so it is impossible to know if the whole picture is yet visible, and have repeatedly failed to provide the exact info requested (and even if you did, i refer you to a) above)

c) your children appear to be negligent in their legal duties as executors of their father's estate. Moreover, an estate that is in debt, and with creditors who may (or may not) take legal action against those executors

AdrianC

OK, so the charge is for £50k - that's a £50k asset for the estate.

Do the executors of the estate know how big the total debts are, excluding this £50k asset...?

The wording of the charge itself is registered at the Land Registry. That's the vitally important wording here.
I'm surprised it's when the first of the two leaves home, but there we are.

GDB2222

AdrianC wrote: »

OK, so the charge is for £50k - that's a £50k asset for the estate.

Do the executors of the estate know how big the total debts are, excluding this £50k asset...?

The wording of the charge itself is registered at the Land Registry. That's the vitally important wording here.
I'm surprised it's when the first of the two leaves home, but there we are.

No, it's not a £50k asset. It's £50k payable at some unknown time in the future. Its worth much less than £50k.

What I suggest the executors do is sell the legal charge. That way they get money in, pay off such debts as they can, and wind up the estate. They should get legal advice, obviously.

What they'll find is that there is no market where such things are sold. I suggest that the OP offers to buy the charge from the estate at a fairly low figure. The executors can then take advice whether to accept that amount. There won't be loads of other investors interested in buying this, and those that are will want a very large discount against face value.

If the OP does not have the money, she can raise a mortgage against the house. This should be possible, as she will be cancelling the legal charge once she's bought it.

spidercrab

I am now going to stop posting on this thread as it’s obviously something that can’t be accurately commented upon without me stating word for word what was put on the charge. OOec25 also stating that my children are negligent in their duties as executors is a bit much. As mentioned previously, they have not had a relationship with their dad for about twenty years and then he goes and dies and nominates them as executors and leaves them to sort out his debts with absolutely no paperwork whatsoever. Thanks for all your input but I will wait and see what a solicitor will advise now, even if it’s not what I want to hear!

xylophone

then he goes and dies and nominates them as executors and leaves them to sort out his debts with absolutely no paperwork whatsoever.

This seems rather hard on the deceased. At the time he made the will naming his sons as beneficiaries and executors, he may have been in a better position - perhaps he wanted to leave them the benefit of his charge on the former marital home?

AdrianC

spidercrab wrote: »

I am now going to stop posting on this thread as it’s obviously something that can’t be accurately commented upon without me stating word for word what was put on the charge.

I'm not sure why this is an issue. Obviously, identifying factors can be blanked. But the wording is rather important if you want opinions in anything other than generic terms.

OOec25 also stating that my children are negligent in their duties as executors is a bit much. As mentioned previously, they have not had a relationship with their dad for about twenty years and then he goes and dies and nominates them as executors and leaves them to sort out his debts with absolutely no paperwork whatsoever.

That sounds rather as if you still hold bitterness towards your ex, and are applying that to the current situation. I'm sure he didn't "go and die" to deliberately spite them and you...

MobileSaver

spidercrab wrote: »

OOec25 also stating that my children are negligent in their duties as executors is a bit much.

It is very important to understand that being an executor is a serious role with significant obligations and far-reaching repercussions. If your children have already started acting as executors (e.g. informing the bank that your ex has passed) then it is now too late to renounce the position.

If that is the case then your children could become personally liable for the £50,000 due to the estate (i.e. the creditors in this case) from the sale of your home. It is crucial that they understand their only legal obligation is to their father's estate even if that makes life difficult for you and your/their home.

I know you keep mentioning you will get legal advice but to be perfectly frank it is actually your children who need legal advice much more urgently than you do.

00ec25

spidercrab wrote: »

I am now going to stop posting on this thread

there are times when this forum is great for help, there are others when professional assistance is what is really needed. This is one of the latter

spidercrab wrote: »

. OOec25 also stating that my children are negligent in their duties as executors is a bit much.

no it is not "a bit much" - you asked

spidercrab wrote: »

Please only answer this if you know the answer

well what I do know is that the legal position of an executor is that person can be accused of "maladministration" and in the worst case that can result in personal liability. Can you say how his creditors are going to react? I can't.

spidercrab wrote: »

As mentioned previously, they have not had a relationship with their dad for about twenty years and then he goes and dies and nominates them as executors and leaves them to sort out his debts with absolutely no paperwork whatsoever.

He obviously thought enough of them to remember them when he wrote his will, and you have previously drip fed that they are also beneficiaries under it. Too bad your bitterness surfaces when presented with fact.

spidercrab wrote: »

Thanks for all your input but I will wait and see what a solicitor will advise now, even if it’s not what I want to hear!

excellent, "we" got there in the end