Charging order

TomThumb2

Have you called the Land Registry? Would they not accept your proof of trying to locate the debt as evidence for the CO removal, or at least be able to advise what you should do? They must have come across this type of thing before.

Rita1960

I have contacted the land registry several times explaining the position and filling out their RX3 form including supplying the information regarding the no contact of the other parties but they keep saying that they require a contact from the claimant of which i cant provide.  When i speak directly to them and explain the situation they say that they understand but then send a letter saying that they need proof of payment of which i cant provide due to the length  of time involved or as said a name of a contact from this company again of which is impossible.

TomThumb2

I'd suggest emailing them after calling to recap the call, saying that as discussed you can't provide proof of payment and that you don't have a contact at the claimant company and detailing the attempts you've made to obtain a contact. Escalate to a manager if necessary. They should understand this and if this isn't enough for them to remove the CO they should be able to suggest a way forward. They must have cone across this sort of thing before.

housebuyer143

TomThumb2 said:

I'd suggest emailing them after calling to recap the call, saying that as discussed you can't provide proof of payment and that you don't have a contact at the claimant company and detailing the attempts you've made to obtain a contact. Escalate to a manager if necessary. They should understand this and if this isn't enough for them to remove the CO they should be able to suggest a way forward. They must have cone across this sort of thing before.

You make the mistake of thinking the land registry have the power to do this - they solely process the paperwork that they get as per the rules and regulations at the time. If they need proof of payment or the creditor to discharge it then without that I don't know what you want them to do. 
I imagine the OP needs to go to court to sort this out. 

Alternatively if they do nothing they can't remortgage, this is true but they can still sell the property down the line with the restriction on it, as you don't need to have proof of payment to remove a form K on sale, you just need to notify the creditor. 

TomThumb2

Is it a mistake though, that's the question, it sounds as if you don't really know. Land Registry are best placed to confirm. The OP is asking them to process the paperwork they have, including proof they haven't been able to reach the claimant. LR have been understanding of the OP position on the phone, so it makes sense to get clarification. They're best placed to provide guidance as to what they can accept and must have come across cases like this before. Maybe the OP does have to go to court, maybe the LR can accept what the OP is providing, best to confirm. The OP can't notify the creditor about the sale because they can't locate them.

GDB2222

housebuyer143 said:

TomThumb2 said:

I'd suggest emailing them after calling to recap the call, saying that as discussed you can't provide proof of payment and that you don't have a contact at the claimant company and detailing the attempts you've made to obtain a contact. Escalate to a manager if necessary. They should understand this and if this isn't enough for them to remove the CO they should be able to suggest a way forward. They must have cone across this sort of thing before.

You make the mistake of thinking the land registry have the power to do this - they solely process the paperwork that they get as per the rules and regulations at the time. If they need proof of payment or the creditor to discharge it then without that I don't know what you want them to do. 
I imagine the OP needs to go to court to sort this out. 

Alternatively if they do nothing they can't remortgage, this is true but they can still sell the property down the line with the restriction on it, as you don't need to have proof of payment to remove a form K on sale, you just need to notify the creditor. 

As the charge is from a bedding company, it can’t be for a huge amount of money. So, I’m surprised that no lenders are prepared to lend. Does the existing charge prevent a new secured lender from foreclosing, or do they merely have to take on the liability to the bedding company? Or, none of the above?

housebuyer143

GDB2222 said:

housebuyer143 said:

TomThumb2 said:

I'd suggest emailing them after calling to recap the call, saying that as discussed you can't provide proof of payment and that you don't have a contact at the claimant company and detailing the attempts you've made to obtain a contact. Escalate to a manager if necessary. They should understand this and if this isn't enough for them to remove the CO they should be able to suggest a way forward. They must have cone across this sort of thing before.

You make the mistake of thinking the land registry have the power to do this - they solely process the paperwork that they get as per the rules and regulations at the time. If they need proof of payment or the creditor to discharge it then without that I don't know what you want them to do. 
I imagine the OP needs to go to court to sort this out. 

Alternatively if they do nothing they can't remortgage, this is true but they can still sell the property down the line with the restriction on it, as you don't need to have proof of payment to remove a form K on sale, you just need to notify the creditor. 

As the charge is from a bedding company, it can’t be for a huge amount of money. So, I’m surprised that no lenders are prepared to lend. Does the existing charge prevent a new secured lender from foreclosing, or do they merely have to take on the liability to the bedding company? Or, none of the above?

The current charge I believe means that any new lender ends up with a change that isn't a first charge and I don't know any mainstream mortgage lender who will accept not being a first charge. 
They don't know how much they debt is for and so it's safer to just not lend.

They don't take on the liability and it doesn't stop them repossessing, but if the first charge is for £50k it could impact the money they got back if they did repossess.

Rita1960

It’s for a small amount of @ £600 but the new lender wants the charge removed before they proceed with the remortgage they won’t shift . 

GDB2222

Rita1960 said:

It’s for a small amount of @ £600 but the new lender wants the charge removed before they proceed with the remortgage they won’t shift . 

I'm not surprised by that, as it's a box-ticking exercise. There are apparently lenders who will lend on a second charge (which this would be). I'm sure the interest rate would be higher. 

https://www.moneyhelper.org.uk/en/homes/buying-a-home/second-charge-or-second-mortgages

https://www.moneysupermarket.com/mortgages/second-charge/


Can I ask whether the property is in your name alone?

TomThumb2

Is it the underwriter at the lender who is refusing to proceed without the charge being removed? Asking because for that size of charge there isn't much of a commercial reason for doing so. The might regard it as a 'bad credit indicator' but you're trying to pay it off. Might be worth seeing if you can escalate it with the lender, like the LR they will likely have come across this sort of thing before.