Charge on property

ndp123

Hello
       I wonder i if anyone can give me some advice on. I loaned a substantial amount of money to my Daughter and Husband. So they could carry out building work to there existing home. I did draw up a contract, which they both signed. Sadly they are now going through a messy divorce. He has stated that he is not going to pay the money owed, when the property is sold. So is it possible for my Daughter to put a charge on the property so the debt is repaid from the proceeds of the sale.
Thank you.

CouldntResist

Why would Husband agree to a charging order if he doesn't want to pay?... You would have to force it on. How good is the 'contract'?

And why would Daughter do it, you are owed the money?

la531983

As per the above, you would likely need to go down the CCJ route if one of the parties wont agree to the charging order.

ndp123

She was told that she put a charge on the property herself. Which would be an acknowledgement of loan. But not sure that is possible.

Hoenir

If there's an existing charge on the property i.e. for a mortgage. Then this lender will need to agree to the second charge being registered. 

CouldntResist

Solicitors exist for a reason.....

If he is a joint owner (and unless ordered by court) wouldn't you expect him to have to agree to a charge on a property he owns, and he won't ; and if not jointly owned I wouldn't expect him to agree to a charge on his part either (again unless court ordered). If your daughter owns the lot then she can perhaps do what she likes to pay you back subject to their divorce financial settlement

Flugelhorn

it will come down to the divorce financial settlement where this is a debt to them both 

DullGreyGuy

Was this a real loan? Have they been making repayments to you? Or was this really a gift to your daughter that you wanted to protect from her husband in the event of them splitting up?

retiredbanker1

The horse has bolted unfortunately - the time to put the charge on was before lending the money with a properly drafted agreement by a solicitor signed by all parties.

MEM62

ndp123 said:

He has stated that he is not going to pay the money owed, when the property is sold. 

That may be his position but the judge will take a different view when the financial settlement is dealt with.  You can't just arbitrarily decide what debts you are prepared to pay which you walk away from.  (That is assuming that your paperwork is proper and valid)  

MacPingu1986

Pretty much a non-starter re the charge, even if this was considered at the time of the loan you'd have needed bank consent (assuming property is mortgaged) & time and costs in having a solicitor draft up the security doc & registering the charge. You'd need the husbands consent to do all this which absolutely won't be given now.

In the contract are your daughter and husband jointly liable for the amount, or each liable separately for a proportion?