Help on charging order on late fathers house.

Rob_01

Hi.

I am asking if anyone can help me. My dad passed away last May. He left me as the executor of his will. The only asset is his house. It was interest only, so the mortgage needs to be paid off upon sale. I had to spend a few thousand pounds to get the house close to being able to be sold. Repairs, locksmiths decorators, life insurance only covered some of the funeral, so I had to foot the bill for that too. I got loans to pay these things off knowing I could pay them off upon sale of the house. The house has recently sold for 100K.  Say 67K for the mortgage and it owes me around 12K in loans to be paid off.

I have just come to exchange contracts to the new buyer, and a charging order is registered against it. I knew nothing about it, and if the info is correct, the order is for around 25K. This will remove all equity in the house, this was enforced in Sep 09 I believe.

I have told my kids and my sisters and brothers (who are all beneficiaries) that they are going to receive a % of the 21K equity, I have even given money upfront to my sibling on the promise it would be returned from the inheritance. Now it looks like no one will get anything, and I am going to be a few thousand in debt and repaying loans!.

This has come totally left field. I feel sick to my stomach, and can't sleep at night with worry. The inheritance for me was towards a deposit for a house, and take my kids on holiday. The inheritance for my kids was towards uni costs and driving lessons. This could be all wiped out at the last minute.

Anyone got any advice or help please, as I'm not sure what to do next.

Thanks in advance.

[Deleted User]

Rob_01 said:

Hi.

I am asking if anyone can help me. My dad passed away last May. He left me as the executor of his will. The only asset is his house. It was interest only, so the mortgage needs to be paid off upon sale. I had to spend a few thousand pounds to get the house close to being able to be sold. Repairs, locksmiths decorators, life insurance only covered some of the funeral, so I had to foot the bill for that too. I got loans to pay these things off knowing I could pay them off upon sale of the house. The house has recently sold for 100K.  Say 67K for the mortgage and it owes me around 12K in loans to be paid off.

I have just come to exchange contracts to the new buyer, and a charging order is registered against it. I knew nothing about it, and if the info is correct, the order is for around 25K. This will remove all equity in the house, this was enforced in Sep 09 I believe.

I have told my kids and my sisters and brothers (who are all beneficiaries) that they are going to receive a % of the 21K equity, I have even given money upfront to my sibling on the promise it would be returned from the inheritance. Now it looks like no one will get anything, and I am going to be a few thousand in debt and repaying loans!.

This has come totally left field. I feel sick to my stomach, and can't sleep at night with worry. The inheritance for me was towards a deposit for a house, and take my kids on holiday. The inheritance for my kids was towards uni costs and driving lessons. This could be all wiped out at the last minute.

Anyone got any advice or help please, as I'm not sure what to do next.

Thanks in advance.

There's not really much you can do if there isn't enough equity to clear the loans secured against the property.  Can you find any details about this charging order and how it came to be?

Really, and I'm sure you now realise this, shouldn't have spent your own money tarting up the house and it's debateable whether you should have contributed your own funds to the funeral.  Can you ask your sibling for the money you gave them back since it was an advance on a seemingly non existent inheritance?  

Comms69

Rob_01 said:

Hi.

I am asking if anyone can help me. My dad passed away last May. He left me as the executor of his will. The only asset is his house. It was interest only, so the mortgage needs to be paid off upon sale. I had to spend a few thousand pounds to get the house close to being able to be sold. Repairs, locksmiths decorators, life insurance only covered some of the funeral, so I had to foot the bill for that too. I got loans to pay these things off knowing I could pay them off upon sale of the house. The house has recently sold for 100K.  Say 67K for the mortgage and it owes me around 12K in loans to be paid off.

I have just come to exchange contracts to the new buyer, and a charging order is registered against it. I knew nothing about it, and if the info is correct, the order is for around 25K. This will remove all equity in the house, this was enforced in Sep 09 I believe.

I have told my kids and my sisters and brothers (who are all beneficiaries) that they are going to receive a % of the 21K equity, I have even given money upfront to my sibling on the promise it would be returned from the inheritance. Now it looks like no one will get anything, and I am going to be a few thousand in debt and repaying loans!.

This has come totally left field. I feel sick to my stomach, and can't sleep at night with worry. The inheritance for me was towards a deposit for a house, and take my kids on holiday. The inheritance for my kids was towards uni costs and driving lessons. This could be all wiped out at the last minute.

Anyone got any advice or help please, as I'm not sure what to do next.

Thanks in advance.

There is no inheritance. The estate was in the red from day 1; there is nothing you can do about this unfortunately.

Talk as a family and see if you can recoup some of the money

luvchocolate

Sorry it's such a shame you didn't know about the changing order as an insolvent estate you should have just walked away and not administered it. 
Unfortunately I think it's too late now hopefully family will pull together to financially help you 

pinkshoes

I'm afraid there is nothing you can do.

House value £100k. Mortgage £67k. Loan £25k. Owed to you £12k.  Estate value -£4000.

What is the £12k owed to you? As executor, you perhaps should have checked for any outstanding debts before spending money on the property. How much would the house have sold for at auction if no work had been done?

And giving out money before the estate has been finalised is just crazy.

All you can do now is be honest with your siblings. Your father died in debt and there is no inheritance. The sibling you loaned money to will have to pay it back, or you will have to write this debt off. Either way, it is clearly going to cause friction. 

kazwookie

Find out what the charging order was for, and maybe contact who ever and see if it is negotiable.

Tell your siblings etc that there is a charging order and it looks like there will not be any inheritance, you cannot give them what you don't have.

Mgman1965

I'd be tempted to pull out the sale and anything in the house I paid for and could be removed, I would, and sell on.

Then just bang the house into auction for whatever it makes and let the charging ordee and mortgage company fight over the proceeds.
Your getting nothing, so why worry/bother over it.

Hard lesson learned, never spend your money on something you don't own.

macman

What stage are you at with probate? As executor of the estate, you cannot start distributing assets or bequests until you have fully established what the liabilities are. It would have been better to sell the house 'as is' rather than spend your own money improving it.

luvchocolate

An insolvent estate should not be administered but left to the authority to deal with 

pleasedelete

is renting it out an option? 

Mojisola

luvchocolate said:

An insolvent estate should not be administered but left to the authority to deal with 

The council wouldn't be interested.  It would either fall to one of the companies owed money to get probate or it would be left and never dealt with.