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Second charge on property to a deceased friend

19 replies 885 views
Bit of a complex situation, my uncle owns his house outright, however when we looked at land registry for his house and there is a second charge on there. It is to his friend, who lent him some money towards the deposit. My uncle has paid back the debt in cash in drips and drabs over the past 30 years, there are no details of the charge amount showing on the title. The friend died 7 years ago. 

We have researched the charge for my uncle and have found it to be £12k with 20% per year. Starting in 1991. He believes the debt was paid about 20 years ago.

My uncle wants to sell the house but we are unsure how to get the charge removed. We think we might be able to contact the deceased family, do we write to them? Do we ask a solicitor to write to them? Would this second charge been part of the deceased friend's probate? 

Any thoughts welcome
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Replies

  • getmore4lessgetmore4less Forumite
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    What records are there that prove the debt has been repaid?

    The executors of the friends estate may not have known about the debt so would never have investigated or  included it in the administration. 

    £12k, 20% interest compounded 30 years is going to be a shock and probably more than the property is worth.
  • springmagpiespringmagpie Forumite
    47 posts
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    Very little records, they aren't the record keeping types. It was all done in cash, and cars!
    Yeah that's what we are fearing. My uncle certainly won't have understood the interest terms.
  • Sea_ShellSea_Shell Forumite
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    Are there any "statute barred" timescales with regards money owed TO and estate, rather than BY an estate?

    If the money's owed to the estate have not been followed up and the estate is now wound up, can the money still be pursued?

    Without any proof of repayments, it's going to be almost impossible to calculate what is owing, if it is still owed.


    Have you tried punching the numbers into a compound interest calculator?
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow ":beer: JOB DONE!!
    This should now read "It's time to start digging up those Squirrelled Nuts"!!! :j:j:j
  • edited 23 February at 3:32PM
    Sea_ShellSea_Shell Forumite
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    edited 23 February at 3:32PM
    £12,000 at 20% interest, over 30 years comes to...


    £4,600,000 give or take a few £££

    Assuming no repayments ever made (documented).
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow ":beer: JOB DONE!!
    This should now read "It's time to start digging up those Squirrelled Nuts"!!! :j:j:j
  • springmagpiespringmagpie Forumite
    47 posts
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    Not sure he has a spare £4.6 mil laying around! 
    Does this mean he will lose his house??
  • Sea_ShellSea_Shell Forumite
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    Not sure he has a spare £4.6 mil laying around! 
    Does this mean he will lose his house??

    I honestly don't know.

    I would have thought it depends on two things.   

    Is there ANY proof of any repayments over the years?

    If the charge is still enforcible, 7 years after the death of the lender?

    " That pound I saved yesterday, is a pound I don't have to earn tomorrow ":beer: JOB DONE!!
    This should now read "It's time to start digging up those Squirrelled Nuts"!!! :j:j:j
  • Sea_ShellSea_Shell Forumite
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    Just notice you've said 2nd charge...is there also a mortgage lender in the mix too?

    In what format had the agreement been drawn up?.   Signed by both?  Witnessed?
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow ":beer: JOB DONE!!
    This should now read "It's time to start digging up those Squirrelled Nuts"!!! :j:j:j
  • getmore4lessgetmore4less Forumite
    42.3K posts
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    ✭✭✭✭✭
    Very little records, they aren't the record keeping types. It was all done in cash, and cars!
    Yeah that's what we are fearing. My uncle certainly won't have understood the interest terms.
    Organised enough at the time to get the charge put on so there were some records.
    Any more details on the terms of the debt.
  • Sea_ShellSea_Shell Forumite
    4.6K posts
    1,000 Posts Fifth Anniversary Name Dropper Hung up my suit!
    ✭✭✭✭
    Very little records, they aren't the record keeping types. It was all done in cash, and cars!
    Yeah that's what we are fearing. My uncle certainly won't have understood the interest terms.
    Organised enough at the time to get the charge put on so there were some records.
    Any more details on the terms of the debt.

    Maybe the friend was the canny one!  Protecting their position @ 20% interest!!!

    It would be in his interest to NOT have received any repayments!!   


    " That pound I saved yesterday, is a pound I don't have to earn tomorrow ":beer: JOB DONE!!
    This should now read "It's time to start digging up those Squirrelled Nuts"!!! :j:j:j
  • springmagpiespringmagpie Forumite
    47 posts
    10 Posts
    Sea_Shell said:
    Just notice you've said 2nd charge...is there also a mortgage lender in the mix too?

    In what format had the agreement been drawn up?.   Signed by both?  Witnessed?
    There was a mortgage but it's been paid off about 5 years ago. 
    There was a start date, no end date.
    Signed and witnessed by both parties. 

    Sounds like he knew what he was doing which is odd he didn't mention it to his family to enable them to claim on it
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