Peying off Mortgage

cazcl

Sorry if this is on the wrong board but...

I was left monies after my mum sadly died last year. I rang my mortgage company for a settlement figure which they duly sent me and I in return sent off the cheque to pay off my mortgage.

After sending them two further letters requesting deeds I rang today to be told that they had sent me a letter two weeks ago (I never received) saying that I had a charging order (yes, charing order not secured outstanding payment) on my house. The girl seemed a little vague and said she would check and ring me back .... no call yet.

Yes, I do have a charging order to a credit card company but this shouldn't effect me buying my house - should it?

I though it only affected the sale of the property which I don't intend to do.

Any answers please for when I ring them back.

Thanks in advance.

silvercar

Firstly sorry for your loss.

Before paying off your mortgage, the lender had first charge on your property and then the charging order lender had a second charge. By paying off the mortgage, the charging order lender moves upto first place in the pecking order. In the days when physical possession of the deeds meant something, the deeds would have been lodged with the chraging order people now that your mortgage is cleared.

Nowadays all records are held by the land registry so the physical possession of the deeds is not crucial. You should be seeking confirmation from your lender that the mortgage is cleared and that they have released their charge on your property.

In answer to your question, the charging order doesn't affect you clearing the mortgage it only affects a sale. If the charging order company get notified that they are now the first charge on the property I do wonder if they will write to you and ask for you to arrange a repayment schedule.

If they hear that you have come into money they could push for repayment, they could possibly try to go to court to force you to pay up or sell up. Whether they will or not depends on the company and the amount of money involved.

In your position I do wonder whether it would have been better to clear the charge?

cazcl

Thank you for your response.

My mortgage, of course, was my biggest monthly outlay so therefore made sense to get it out of the way.

The charging order is for £3,200 which I'm paying through Pay Plan and now with mortgage paid I've been able to increased monthly repayments to them.

Thanks again.

7blackdog7

Hi,

I to have a 2nd charge against my mortgage, only discovered when I paid it off.
In my case the charge (May1985) was paid back in 86/87, but the solicitor who handled the case has long gone and the Partnership destroys all closed files after 12 years.
The company in whose favour the charge was made was sold in 1993 and the company it was absorbed into was disolved in 2000.

There are no records to present to the Land Registry who are demanding proof positive. I am hoping to sell my house, but the charge will prevent me.

What action can I take to have this administrative error corrected.