Charging order against a house

housebuyer143

Lishah said:

user1977 said:

Lishah said:

Postik said:

Out of interest, what difference would it make if there was a charging order against it?  I assume when the house is sold the charge is settled.

Yea ur right, but I think sometimes the charge stops u from selling the property at all, I’m jus assuming. 

Only if you can't afford to pay it off. But the same would apply to, say, an ordinary mortgage, if you're in negative equity. It's not something to get specially concerned about as a buyer.

Is there a reason why you're asking?

A property we’re looking to buy has a charge on it. I was just curious at what point in the conveyancing process the solicitors become aware of this. 

On the day of exchange if the other side lied about paying them off and then amended the answer to the enquiry on exchange day 🙄 
That caused us a two week delay, a lot of stress and extra chaps fees.

propertyrental

Lishah said:

user1977 said:

Lishah said:

Postik said:

Out of interest, what difference would it make if there was a charging order against it?  I assume when the house is sold the charge is settled.

Yea ur right, but I think sometimes the charge stops u from selling the property at all, I’m jus assuming. 

Only if you can't afford to pay it off. But the same would apply to, say, an ordinary mortgage, if you're in negative equity. It's not something to get specially concerned about as a buyer.

Is there a reason why you're asking?

A property we’re looking to buy has a charge on it. I was just curious at what point in the conveyancing process the solicitors become aware of this. 

Your solicitor will become aware pretty early on in the process when he reviews the Title.

He'll get a 'solicitors undertaking' from the seller's solicitor that it will be paid off/removed using the sale funds.

Perfectly normal and happens with the 85% of property sales that have a mortgage against them.

A solicitor who reneged on such an undertaking would likely get struck off.

TBagpuss

Yes solicitors undertakings are legally binding so as with a mortgage (which is a legal charge!) the sellers solicitors / conveyancers will get a redemption statement for them origination with the benefit of the charge and then will arrange to pay it off as they would with a standard mortgage.

IT can cause delays - for instance if the charge is very old and the company in whose favour it is can't be traced , or if there were to be any dispute over how much was owing.

AS a previous poster said, you can download a copy of the title from the land registry for £3 if you want to check before you put an offer im, but your conveyancer will check it