Debt charges on a house we are buying

user1977

peterhjohnson said:

As I understand it (and I may be wrong), the seller's solicitor:

1. Finds out the redemption amount for each charge
2. Gives each charge owner an undertaking to pay off the charge from the sale proceeds in return for the creditor releasing the charge.
3. You (+ maybe your lender) pay the seller's solicitor in the normal way at completion
4. Seller's solicitor pays off the debts
5. Seller's solicitor pays the seller the balance.

Which is fine if the price covers all of the secured debts. I presume from the context that it doesn't, and the seller doesn't have the cash to make up the balance.

silvercar

user1977 said:

peterhjohnson said:

As I understand it (and I may be wrong), the seller's solicitor:

1. Finds out the redemption amount for each charge
2. Gives each charge owner an undertaking to pay off the charge from the sale proceeds in return for the creditor releasing the charge.
3. You (+ maybe your lender) pay the seller's solicitor in the normal way at completion
4. Seller's solicitor pays off the debts
5. Seller's solicitor pays the seller the balance.

Which is fine if the price covers all of the secured debts. I presume from the context that it doesn't, and the seller doesn't have the cash to make up the balance.

…which means that any one of the charge holders who isn’t getting paid in full can block the sale by refusing to remove their charge. The seller has to persuade them that either they will get more money by agreeing to the sale eg if they would get some of their money, or to release the charge in return for a repayment plan. 

gazfocus

Can you post an example of one of the charges from the title deed (minus any identifying info)? There are two types of charging orders. One is an interim charging order, which does not have to be repaid on completion, and a full charging order which does. The wording on the actual deed will help identify which it is. 

ellbels95

gazfocus said:

Can you post an example of one of the charges from the title deed (minus any identifying info)? There are two types of charging orders. One is an interim charging order, which does not have to be repaid on completion, and a full charging order which does. The wording on the actual deed will help identify which it is. 

These are some of the orders- some have beneficiary and some say unilateral notice. No idea what that means.