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Property Auction Purchase - Issues with Charges & Restrictions

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  • loubel said:
    Use a different solicitor. The auction house are correct. The property is being sold by the first lender with a charge and the 2nd restriction will be removed on completion.

    Just to go back to this if it helps anyone - I spoke with a different solicitor this morning and he went along with this advice. So it looks like my usual solicitor had it wrong.
  • housebuyer143
    housebuyer143 Posts: 4,257 Forumite
    1,000 Posts Third Anniversary Name Dropper
    edited 14 March 2024 at 2:08PM
    The first one is the lender who is selling, the second is a form K restriction I believe (assuming it's a jointly owned property?) so before completion your solicitor will need to write to the person listed in the charge and do as it says, to notify them of the sale. They then sign to say they have done this when registering your title and assuming they did it right, the charge falls off when your title is registered. 
    Not many solicitors understand this though so make sure you get one who does.
  • The first one is the lender who is selling, the second is a form K restriction I believe (assuming it's a jointly owned property?) so before completion your solicitor will need to write to the person listed in the charge and do as it says, to notify them of the sale. They then sign to say they have done this when registering your title and assuming they did it right, the charge falls off when your title is registered. 
    Not many solicitors understand this though so make sure you get one who does.

    There's only one proprietor listed on the title absolute so it looks like it's not jointly owned. Does that change things?
  • housebuyer143
    housebuyer143 Posts: 4,257 Forumite
    1,000 Posts Third Anniversary Name Dropper
    edited 14 March 2024 at 3:20PM
    The first one is the lender who is selling, the second is a form K restriction I believe (assuming it's a jointly owned property?) so before completion your solicitor will need to write to the person listed in the charge and do as it says, to notify them of the sale. They then sign to say they have done this when registering your title and assuming they did it right, the charge falls off when your title is registered. 
    Not many solicitors understand this though so make sure you get one who does.

    There's only one proprietor listed on the title absolute so it looks like it's not jointly owned. Does that change things?
    Normally you see these restrictions on jointly owned houses because you can't get final charging orders on jointly owned property, so they are interim ones. 

    This still sounds like a form K though as the restriction does say to notify the bank it's being sold and it's an interim charging order. Your solicitor will know for sure but if it's a form K they fall of on registering your title and can't come back on you if not paid.

    This is the standard form K wording and it reads like yours. I bought a house with 3 of these and they all fell off on registration of my title as the creditors were notified.
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