Help needed - charges against house

trudie15

Hi,

I would appreciate as much help as possible with this. My Parents had their house repossessed in 1991, later in 1991 they managed to get another mortgage and buy a house, the original lender placed a £3000 charge against the new property in 1991, my parents have been paying monthly interest of approx £80. My Dad is due to retire and as a result decided to ask for the amount to clear the chrage and has received the letter today ststing the charge is £85000 (approx can't remember the exact figure).

How can this be so?

When my Dad phoned and requested the details they would not tell him over the phone but told him when he had received the details to make an offer.

If anybody can help I would be really grateful.

Dan_Collins_2

Seek legal advice as soon as possible. Check with the land reg to see what the charge is, is it a charge or a caution??

Not sure why they are charging this much. Was there much of a shortfall when the repo went through!

trudie15

Don't know I was 11 at the time. I know the charge was £3000 but thats about it. Think the original mortgage on the house was £18000

Whats the difference between a charge and a caution?

Sorry to sound so clueless

Thanks Very Much

Trudie

trudie15

Hi it says something along the following on the land registry

(28.09.1992) REGISTERED CHARGE dated 12 June 1992 to secure the moneys
including the further advances therein mentioned.

(28.09.1992) Proprietor: CHESHIRE BUILDING SOCIETY of Castle Street,
Macclesfield, Cheshire SK11 6AH. -

(07.12.2001) Equitable charge created by an order Absolute of the Mold
County Court dated 27 November 2001 in favour of West Bromwich Building
Society.

My Dad's mortgage is with Cheshire BS so what does the above mean?

Thanks

maninthestreet

So is it the Cheshire Building Society or the West Bromwich Building
Society demanding the £82,000 payment? And to whom was the £80/month payment going to?

trudie15

My Dad's current mortgage is with Cheshire - no problems with them!

The £80 a month is paid to West Brom and West Brom is saying the charge they have against the house is £82,000 with all the interest added.

Dan_Collins_2

I think you should see a solicitor. This does not make sence to me.

Are you sure its not the Cheshire asking for that money?

trudie15

No definately the west brom, My dad received the letter today. The mortgage my Dad has with Cheshire is £45 000 and not in arrears.

Dan_Collins_2

Ok, ask west brom why it is 85 and 3 and get it in writing, then go see a solicitor.

maninthestreet

£80/month interest on £3000 equates to 32% p.a. Over the 16 year period from 1991 to now, it would require a 23% p.a interest rate for the £3000 debt to balloon up to £82000 due to compound interest. The West Brom. BS needs to explain where the £15360 payments for interest made over the last 16 years have gone.

Dan_Collins_2

Very good point have they proof of payments being made?