Buying house with Interim charging order

housebuyer143

middleagedriver said:

housebuyer143 said:

On reading again, if you seller plans to settle the charges (even though they don't have to) it might be much easier and could be as simple as an undertaking from the sellers solicitor to pay and remove the changes after completion.

Depends if they are paying them off or not as to the course of action to be taken. 

Yeah they plan to settle the charge.

Redacted enquiry for context:

There  is  a  restriction  registered  in  favour  of  XXXXXX.  We  will  require  an  RX3/RX4  (whichever  is applicable) to be handed over on completion duly signed. Please provide your undertaking to discharge your  clients'  liability  and  forward  to  us  the  appropriate  discharge  documentation  on  or  before completion.

FURTHER OBSERVATION: 

We note your response that you are in receipt of the redemption statement from XXXXX and upon Completion  and  out  of  the  sale  proceeds  you  Undertake  to  pay  the  requisite  sum  to  XXXXXX. However, we will require an RX3/RX4 (whichever is applicable) to be handed over on completion duly  signed.  Please  provide  your  undertaking  to  forward  to  us  the  appropriate  discharge documentation on or before completion

It sounds promising. I'm sure it won't be long before you can exchange 👍

middleagedriver

@Land_Registry are you able to help with this please? I’ve also sent you a DM with the title number.

Land_Registry

Practice Guide 76 section 4 para 3 explains how a form K can be automatically cancelled after overreaching - essentially if there’s a sale and the restriction is complied with then it will be automatically cancelled as explained 
https://www.gov.uk/government/publications/charging-orders
Another poster refers to our refusing to accept RX3 or RX4 - I assume they mean ahead of the sale as at that stage the debt hasn’t been paid so the restriction can’t be cancelled and the creditor isn’t going to withdraw it. 

I’d suggest asking your solicitor if they have considered PG 76 section 4 as it may influence their position on this and enable them to review matters. They may have other reasons for asking for RX3 or RX4

middleagedriver

Land_Registry said:

Practice Guide 76 section 4 para 3 explains how a form K can be automatically cancelled after overreaching - essentially if there’s a sale and the restriction is complied with then it will be automatically cancelled as explained 
https://www.gov.uk/government/publications/charging-orders
Another poster refers to our refusing to accept RX3 or RX4 - I assume they mean ahead of the sale as at that stage the debt hasn’t been paid so the restriction can’t be cancelled and the creditor isn’t going to withdraw it. 

I’d suggest asking your solicitor if they have considered PG 76 section 4 as it may influence their position on this and enable them to review matters. They may have other reasons for asking for RX3 or RX4

Thanks for the help. I will ask my solicitor tomorrow. I can only assume our mortgage company (Nationwide) are requesting the debt to be paid off on completion and a RX3 or RX4 sent to our solicitor but will clarify tomorrow.