Selling with an Interim charging order on property

MovingOn64

Hi . I am considering selling my house to a builder, but there is an Interim charging order on the property , it was put there in 2008, I do not think it has been make final as its never been back to court and wondering if it is still valid ?
What is the difference between an Interim charging order and a final charging order ?

It is in my husbands name from a credit card and we are both on the mortgage . 

When the kids were younger we were struggling to pay and we asked the judge to lower the monthly payment and he asked if £5 a month would be more manageable and husband said yes , the judge also told him he would never allow a forced sale on this debt , wondering if this means it has never been made a final charging order .

Hoenir

The debt has never been settled?  Still paying £5 a month ?

housebuyer143

MovingOn64 said:

Hi . I am considering selling my house to a builder, but there is an Interim charging order on the property , it was put there in 2008, I do not think it has been make final as its never been back to court and wondering if it is still valid ?
What is the difference between an Interim charging order and a final charging order ?

It is in my husbands name from a credit card and we are both on the mortgage . 

When the kids were younger we were struggling to pay and we asked the judge to lower the monthly payment and he asked if £5 a month would be more manageable and husband said yes , the judge also told him he would never allow a forced sale on this debt , wondering if this means it has never been made a final charging order .

Ok, so an interim charging order (form K restriction), which are the restrictions that are lodged against jointly owned property do not have to be paid. You can't get a final charging order on jointly owned property. Final must be taken him sale proceeds, interim does not.

You can't sell the property with the restriction on the title but interim charging orders do not need to paid - your solicitor simply needs to notify the creditor that the property is being sold. This isn't too say then they don't come after you again because they know have money from the sale. 

The problem with these restrictions is that solicitors are really uninformed about them and the majority will tell you that you need to pay it before completion. Say you find a solicitor who knows about them (and you will probably have to search), the issue then becomes does your buyers solicitor know about them as well? If they don't, then they might not accept the debt not being paid on completion.

How much is the debt? If it's not much you will probably save yourself hassle by just paying it : although literally there is no requirement to pay these, as they will fall off the title on the new registration providing the creditor is notified.

See this thread for a lot more information.

https://forums.moneysavingexpert.com/discussion/1839539/charging-order-the-myth/p514

MovingOn64

Hoenir said:

The debt has never been settled?  Still paying £5 a month ?

Yes and its going to take 71 years at this rate . I asked for a SAR on the account and there is a discrepancy from 2008 when £100 was returned which we made as a payment during a dmp . Immediately they went for a CCJ then the restriction or charge whatever it is on the house . The court set the payment amount at £25 a month then we had a period of financial hardship and then court set it to £5 a month and its been paid every month . Should we have not paid anything ? I a little confused .