2nd Charge on property - Creditor Liquidation/Debt sold to Azzurro

GDB2222

hasjav said:

silvercar said:

If Santander repossess with the charging order still in place, they would give any equity (after the Santander mortgage has been repaid) to clear the Solaris debt. Anything left over they would pass to the owners. So a key question is whether a sale price would be enough to clear  the Santander mortgage?   

Yes, my mortgage offer is adequate to cover the first (Santander) and second (PCF) charges but where I am stuck is that my mother and siblings have a financial interest in the property too and rightly so and there may not be enough left over to give to them. So I also need to protect their interest too which is why I am trying to find a way to use this as an argument in court. 

I do hope I am making sense - I understand I am out of my depth here but we see people all the time fighting their legal battles with no law degrees.

Surely, the question is not what your mortgage offer is, but how much the house is worth? Supposing the house is worth £300k, and the Santander and PCF charges combined come to £200k, then there's £100k of equity left over. Maybe, part of that is yours, but you haven't said. 

I have a feeling that you are trying to buy the house for less than it's actually worth, because that's the maximum you can borrow, and you can't do that as well as paying out your mother and siblings in full. It may be better to sell the house on the open market, and then everyone gets paid in full.  

hasjav

GDB2222 said:

hasjav said:

silvercar said:

If Santander repossess with the charging order still in place, they would give any equity (after the Santander mortgage has been repaid) to clear the Solaris debt. Anything left over they would pass to the owners. So a key question is whether a sale price would be enough to clear  the Santander mortgage?   

Yes, my mortgage offer is adequate to cover the first (Santander) and second (PCF) charges but where I am stuck is that my mother and siblings have a financial interest in the property too and rightly so and there may not be enough left over to give to them. So I also need to protect their interest too which is why I am trying to find a way to use this as an argument in court. 

I do hope I am making sense - I understand I am out of my depth here but we see people all the time fighting their legal battles with no law degrees.

Surely, the question is not what your mortgage offer is, but how much the house is worth? Supposing the house is worth £300k, and the Santander and PCF charges combined come to £200k, then there's £100k of equity left over. Maybe, part of that is yours, but you haven't said. 

I have a feeling that you are trying to buy the house for less than it's actually worth, because that's the maximum you can borrow, and you can't do that as well as paying out your mother and siblings in full. It may be better to sell the house on the open market, and then everyone gets paid in full.  

The offer is not actually far off from what the house has been valued at. I wouldn't be buying it if it wasn't for my mum. My mum doesn't want to sell the house outside of the immediate family and my siblings are not in a position to buy it. The goal is to retain our family home. The issue is we weren't aware of this second charge prior to October 2023 and the final order until 6 October 2025. So I am trying to find grounds to have it removed or varied

silvercar

My deceased Father's mortgage lender's representative were granted a repossession order and have sent a previous notice of eviction which was stopped. I am representing my Mother as she is the benefactor and I am also buying the house so that my elderly mother doesn't have to suffer from homelessness in her old age, has some money to relocate and a property of this size is difficult to find for me and my other half.

Back to the beginning, who now owns the property and in what split?

If your mother is the benefactor, does that mean she owns it all - subject to the mortgage and charge?

If so, I can see you want to get a mortgage to release the current mortgage and the other charge, so why do your siblings factor in this? 

GDB2222

I’m unclear what happens if you get the second charge removed? Are you hoping that the debt will be cancelled too? And, who owed the money in the first place? Your dad, your mum, or both of them jointly? 

As to the house, did your parents own it jointly, as joint tenants, or tenants in common? 

There are so many questions that I really think that you need legal advice from someone who has all the details and the history. 

hasjav

silvercar said:

My deceased Father's mortgage lender's representative were granted a repossession order and have sent a previous notice of eviction which was stopped. I am representing my Mother as she is the benefactor and I am also buying the house so that my elderly mother doesn't have to suffer from homelessness in her old age, has some money to relocate and a property of this size is difficult to find for me and my other half.

Back to the beginning, who now owns the property and in what split?

If your mother is the benefactor, does that mean she owns it all - subject to the mortgage and charge?

If so, I can see you want to get a mortgage to release the current mortgage and the other charge, so why do your siblings factor in this? 

Good question regarding the siblings; they're expecting to be paid something from Dad's estate. What you say is correct about getting the mortgage to pay off both debts.

The property is still in my Dad's name. He didn't leave a will so rules of intestacy apply. I'm representing my Dad and then Mum through letters of administration. I hope I have explained this well enough to make sense 

hasjav

GDB2222 said:

I’m unclear what happens if you get the second charge removed? Are you hoping that the debt will be cancelled too? And, who owed the money in the first place? Your dad, your mum, or both of them jointly? 

As to the house, did your parents own it jointly, as joint tenants, or tenants in common? 

There are so many questions that I really think that you need legal advice from someone who has all the details and the history. 

Yes, I am hoping the second charge removes the debt too - The court has the power to do this?

House is still in late father's name, he was the sole owner.

I have had legal advice and I am somewhat clear on what needs to be done but the issue is the second charge. There is contradicting information about it which has me baffled. One point says I can contest it, another refutes that point.

Maybe I will end up paying it off once all of this sinks in and depending on what information I can get. We just found out the charge was made final more than 7years ago on 6 October 2025. Solaris (Azzurro) has had the debt since 2021 and I contacted them last year but they never bothered answering allowing the debt to accrue interest. I am upset with that and want to contest it.

hasjav

2nd UPDATE:

Hi guys, while I was preparing to make an application to the court, I have received a response from Solaris this evening - They have invited me to put forward any reasonable settlement proposals to them.

Does anyone have any experience with settling debts/second charges? What would be a reasonable settlement figure to offer them considering I am borrowing money to pay off a debt that I do not owe?

I want to see an end to this misery and I am hopeful that with your help I will be able to achieve this.

Feel free to send me a private message if you didn't want to post publicly.

Thank you to everyone who has helped.

silvercar

If the main mortgage is larger than the property value, then they would get nothing, so that would be my starting point. If there would be money to pay them then it’s worth something. If they are offering to negotiate, they clearly think they aren’t going to see much money anytime soon, so 10% could be a starting point.