Property with 'proceeds of crime' charge on title deeds

thetcutkid

I've seen a property I'm interested in viewing.

It's been on the market a while and has been reduced in price multiple times, the fact it's detached, 3 beds, in a decent area and the EA couldn't (or wouldn't) tell me much about it got my spidey sense tingling so I paid £7 and downloaded a copy of the title deeds.

There are two charges on there under the proceeds of crime act.

I've googled the registered owner and he was convicted of fraud a couple of years ago and received a suspended sentence.

It's just had another £10,000 taken off the selling price and I think I might go and view it but clearly I'm somewhat nervous about buying a property in this scenario.

Should I absolutely walk away or, with a good solicitor onboard (which I already have) can the sale of a property like this be completed without too much additional hassle?

Any advice greatly appreciated.

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/6679447/property-with-proceeds-of-crime-charge-on-title-deeds

If you have a good solicitor why arent you asking them rather here?

In principle its fine (assuming its a confiscation order, not a restraining order) but the Courts will be involved in agreeing the sale so things will move slowly, your solicitor will charge more to deal with it all and you may struggle to get a mortgage from a regular lender until the charge is removed. If the courts have appointed a receiver then things arent as slow because they have the powers to agree or not the sale rather than it having to go back to the court.

thetcutkid

If you have a good solicitor why arent you asking them rather here?

'cos I wouldn't get the chance to interact with lovely, friendly, helpful people like you 😘🙄

The charge names the local authority that was defrauded, I'm assuming they go to the courts to get the charge put on?

I would be a cash buyer, no mortgage, at what point does the charge get removed - the exact moment my funds are transferred?

mta999

The seller's solicitor normally gives a solicitor's undertaking to remove the charge once completion has taken place - in practice that may take a few weeks

On the contract for sale at exchange it will be stated that the charge (and in fact all charges) must be removed so it's not really your problem in a way - it is the selling solicitor's problem

Exodi

https://forums.moneysavingexpert.com/discussion/comment/82099137#Comment_82099137

But then on the flipside, the property usually sells for less than one without those challenges.

A house on our road has recently had new owners move in, after the old ones were imprisoned on high profile drug charges and assets seized and sold.

It wouldn't bother me if I was buying, in fact it could be good as you might be able to pick up a bargain (though probably not suitable for an impatient first time buyer!).

thetcutkid

Absolutely Exodi, this is exactly why I'm interested, it's dropped £70,000 in the last 10 months and is now up for £5000 less than when it was last sold in 2004.

Our buyer is all set, survey done yesterday, mortgage in place etc, I could totally see me having to move in with family if I did decide to go for it 🤔

Section62

https://forums.moneysavingexpert.com/discussion/6679447/property-with-proceeds-of-crime-charge-on-title-deeds

Should I absolutely walk away or, with a good solicitor onboard (which I already have) can the sale of a property like this be completed without too much additional hassle?

Not necessarily a reason to walk away, but in addition to getting the purchase over the line, bear in mind you may get some 'hassle' in future due to the previous owner's activities. The address may appear in various databases, might be in the media, and there's a possibility you'll get letters and or visits if there are people owed money.

Whether or not that is an issue depends on your own tolerance of dealing with other people's post and/or explaining you've moved in and have no connection to the former owner.

thetcutkid

Not necessarily a reason to walk away, but in addition to getting the purchase over the line, bear in mind you may get some 'hassle' in future due to the previous owner's activities. The address may appear in various databases, might be in the media, and there's a possibility you'll get letters and or visits if there are people owed money.

An excellent point Section62 and something that has been very much in my mind…yes it has been in the media.

He's been prosecuted for this particular offence but if he is a bit 'dodgy', what's to say he hasn't done something else…?

silvercar

https://forums.moneysavingexpert.com/discussion/comment/82099207#Comment_82099207

At least it’s a matter of public record that the property has been sold. All the local undesirables will be aware.

Chief_of_Staffy

https://forums.moneysavingexpert.com/discussion/comment/82099207#Comment_82099207

My neighbour four doors down from my last place had this. He was a tenant, but the guy before him was a drug dealer. Had the place raided by the police one day (and all this in a quiet Lake District village). The guy who moved in had multiple instances of the dealer's 'customers' and / or creditors coming round at 2am, kicking the door, threatening him and even… no, I won't say, but he had to clear it up. And because there was only one police officer in a ten mile radius, and he mainly concerned himself with lost sheep, it continued for some time.

SDLT_Geek

https://forums.moneysavingexpert.com/discussion/6679447/property-with-proceeds-of-crime-charge-on-title-deeds

You might want to ask the estate agent who is selling the property.

(a) It could be the registered owner, in which case it can only go through if there is enough money from the sale to clear all of the charges, but one would expect undertakings to be given at completion between solicitors to remove the charges.

(b) It could be by a chargee, which might make the position easier in that any subsequent charges would be "overreached" at completion, so the sale can go through and give you good title even if there is not enough money to pay off all of the charges.