Will An Interim Charging Order Block Sale Of My House?

tarchin

First - I have read ALL the posts in ALL the forums on charging orders and understand what is entailed. My query is: would an interim charging order be sufficient to block the sale of my house? i.e. does one have to wait until the order is granted in full / dismissed before a buyer can purchase? - reason for sale is to attempt to repay debts at a final settlement reduced sum.
There is sufficient equity for the charge to be paid if it is granted, but by then the purchaser may have pulled out ! - but can one "pay off" a charge that is only interim? If not and there is an interim charge at the time of proposed final sale, my purchaser would be very unlikely to agree to buy a property with a charge of £6k on it, even if this was permitted.
CLS advise that it is probably the case that a sale could not go ahead and there is no machinery for an interim order to be withdrawn by the applicant even if they agreed to it.

ANY ADVICE / OPINIONS / EXPERT JUDGEMENT very welcome.

I do not intend to mislead my solicitor or purchasers - i only suspect the possibility that an interim charge might be applied for because that is RBS style generally; my particular case is: I received a default judgement on CCJ to pay all forthwith on the grounds that claimant did not receive N9A, however the court has agreed to a hearing to set this aside because I have proof that all necessary documents were received in time by the claimants (solicitors for RBS). The solicitors have told me that they would not accept my offer anyway and would see me at the hearing (no date yet). Meanwhile i am in the middle of selling my house (survey to be done in 2 days) with a very keen buyer.

Thanks for your interest. Tarchin

loopylu36

Who are CLS? I cannot beleive that an interim order cannot be withdrawn? I see no reason why your sale cannot proceed. If you repay the loan before the interim order becomes final, then it will no longer need to be made final as there will no more debt to secure against the property but, if the order does become final before you have exchanged, then you just need to instruct your solicitor to repay the debt from the proceeds of sale(he or she will need to have all the redemption figures so that they can be sure that there is enough money and in fact you will need to give him/her instructions to pay it from the proceeds of sale wether the order is mad final or not.) Your solicitors can then "undertake" to your buyers solicitors that the property will be sold free from all charges. Have a chat with your solicitor, I am sure they will put your mind at ease but you do really need to tell them so that they can help you find a way for the sale to proceed.

MrsTinks

Surely your solicitor handling the sale of the house should be able to answer this for you?
I'm not sure but my thoughts would be that you can still sell the house but the money you owe on the order would still be taken after the mortgage is repaid same with any secured debts... Just my guess though...

tarchin

cls is community legal services - a free legal source (dependant on income) to whom i was referred by national debtline. i wonder about asking my conveyancing solicitor re this because:
a. might not happen
b. would involve further costs, or would it be counted as part of the conveyancing?

loopylu36

Not saying cls have given you bad advice, but Im not sure I agree with what they told you (the only reason I think I am qualified to disagree is cos I was a conveyancer for 13 years til last month) If I was dealng with your case I wouldn't usually make an extra charge unless it involved me spening a LOT of extra time on the file. Again your solicitor/conveyancer should be able to confirm what (if any) extra they will charge. I am not sure whether an Interim Charging Order will show as a caution on your title deeds - it quite possibly will in which case your solicitor will know anyway and will need an explanation.

ferarrisaap01

Hi, could someone please help me... I have a property in joint names and have a charging order against it, I have checked with land Registry and it does confirm that.

I have sold my property but there is not enough equity from the property to pay the debtor back there is still a large balance outstanding! Is it a long process for the charging order to be taken off? The agent and solicitors are aware of the CO that is applied.

Can the debtor refuse for the property to be sold? At this stage no one has informed the debtor about the situation.

DVardysShadow

ferarrisaap01 wrote: »

Hi, could someone please help me... I have a property in joint names and have a charging order against it, I have checked with land Registry and it does confirm that.

I have sold my property but there is not enough equity from the property to pay the debtor back there is still a large balance outstanding! Is it a long process for the charging order to be taken off? The agent and solicitors are aware of the CO that is applied.

Can the debtor refuse for the property to be sold? At this stage no one has informed the debtor about the situation.

Please start a new thread. It just gets confusing reading a new problem mixed up with stuff from 2 years ago.

DarkConvict

Maybe worth reading this and starting a new topic - http://forums.moneysavingexpert.com/showthread.html?t=1839539