Charging Order? The myth

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  • hayz347
    hayz347 Posts: 27 Forumite
    edited 9 November 2018 at 11:10AM
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    Also in relation to this part from eggbox
    If the house is to be sold then, if the Restriciton is a standard Form K as most are; then all that is required to comply with the Restriction terms (to allow the house to be transferred to a new owner) is for the buyer to i) notify the creditor the house is being sold and ii) to certify to the Land Registry that notification has been made to the creditor.

    Can my solicitor do this? i.e can my solicitor notify the creditor the house is being sold and certify to the land registry that this notification has been made? Rather than having the buyers solicitors do this? Also if my solicitor CAN do this do they need to inform the buyers solicitor?
  • D_M_E
    D_M_E Posts: 3,008 Forumite
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    Hayz347 - it is for the BUYER'S solicitor to tell the debt holder about the sale, not yours - this is what Eggbox has been banging on about many many times in this thread, and has been confirmed many times by others taking such action. This is all providing it's a Form K restriction, details of which have been posted by Land Registry one or two pages ago.

    Also, the notification by the BUYER'S solicitor can be made at any time up to the very last second before sale but is best done, I think, within a few days, but it is for the BUYER'S solicitor/conveyancer to this, NOT yours.

    You need to tell your solicitor this and get them to inform the other side.

    What I don't understand is, if the debt is yours and you already have a charging order in your name, then why has your husband ALSO got a charging order FOR THE SAME DEBT if he has no resposibility for it?
  • eggbox
    eggbox Posts: 1,774 Forumite
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    D_M_E wrote: »
    What I don't understand is, if the debt is yours and you already have a charging order in your name, then why has your husband ALSO got a charging order FOR THE SAME DEBT if he has no resposibility for it?

    hayz347 will, hopefully, clarify if this is not the case; but her husband wasn't having a charging order made against him (which wouldn't be possible anyway if he wasn't the debtor), she was stating her husband had received notification of her intended Interim Charging Order against herself?

    Joint Owners are notified as they are entitled to object to the order being made? It's a waste of time as Judges always grant the CO?

    But you are correct explaining to hayz347 that it is the buyers side that has to notify the creditor, with a Form K Restriction, as that is what is stated in the wording of the Restriction. As LRR has made clear, what is stating in the wording is what has to be followed to comply with the Restriction.
  • hayz347
    hayz347 Posts: 27 Forumite
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    DME & eggbox

    Top advice get it crystal clear now thank you! Onward and upwards as they say. Lets see where we go from here.
    hayz347 will, hopefully, clarify if this is not the case; but her husband wasn't having a charging order made against him (which wouldn't be possible anyway if he wasn't the debtor), she was stating her husband had received notification of her intended Interim Charging Order against herself?

    Above is spot on!

    Wondering If I make a call to the company enforcing this CO and explain the above. Offer to pay £10K upfront (not out of the house proceeds) and the remainder on a payment plan what they will say?
  • hayz347
    hayz347 Posts: 27 Forumite
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    Its also worth mentioning I done a land registry search today and the CO is not showing yet? The court order was on the 31st October.... I wonder if it will even show up before completion on Friday 16th?
  • D_M_E
    D_M_E Posts: 3,008 Forumite
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    Hayz347 - If it were me, would not make any contact with the company.

    Would make sure the buyer's solicitor/conveyancer knows they have to notify creditor - and certifies to LR that they have done so - then, if you feel like it, contact creditor AFTER sale completes and make any full and final offer which you feel comfortable with.

    Particularly if, as you say, there is no charging order as yet, but there could well be one in the offing.

    16th is only 7 days away so that does not give creditor much time to get their act together once notification has been sent by buyer's representative.

    That's what I would do, anyway.
  • eggbox
    eggbox Posts: 1,774 Forumite
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    hayz347 wrote: »
    Its also worth mentioning I done a land registry search today and the CO is not showing yet? The court order was on the 31st October.... I wonder if it will even show up before completion on Friday 16th?

    I think we need to back up a little here and and clarify a few things things as I'm getting confused?

    You originally said you were notified you had a Judgement for a £19k debt that was around 10 years old? I'm assuming then that this was showing on your deeds as a Restriction, yes?

    What advice has your Solicitor given you regarding the Restriction and has your buyers solicitor mentioned anything about a Restriction?

    Certainly, don't contact the creditor until you have had chance to update us on those questions asked?
  • hayz347
    hayz347 Posts: 27 Forumite
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    eggbox wrote: »
    I think we need to back up a little here and and clarify a few things things as I'm getting confused?

    You originally said you were notified you had a Judgement for a £19k debt that was around 10 years old? I'm assuming then that this was showing on your deeds as a Restriction, yes?

    What advice has your Solicitor given you regarding the Restriction and has your buyers solicitor mentioned anything about a Restriction?

    Certainly, don't contact the creditor until you have had chance to update us on those questions asked?

    I had a Judgement on my personal credit file .... not the house

    We only had the letter to my partner regarding the CO order late last week so have not informed any parties as yet.

    I have pulled the Title Register from the LR website on our property. Nothing is showing on there as yet in relation to this CO ..... wondering if it will even show up before 16th...

    Noted from DME & yourself re. contacting creditor
  • eggbox
    eggbox Posts: 1,774 Forumite
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    hayz347 wrote: »
    I had a Judgement on my personal credit file .... not the house

    We only had the letter to my partner regarding the CO order late last week so have not informed any parties as yet.

    I have pulled the Title Register from the LR website on our property. Nothing is showing on there as yet in relation to this CO ..... wondering if it will even show up before 16th...

    Noted from DME & yourself re. contacting creditor

    Okay, that's a little clearer but I'm still a little unsure how the CCJ (County Court Judgement) has affected your sale?

    A CCJ should only remain as showing on your credit file for 6 years but it would only be your mortgage lender that this item would be a problem for in, possibly, refusing to grant you a new mortgage knowing you had "bad credit" through a credit file check? So is this what has happened as a CCJ won't block a sale proceeding, otherwise?

    Unfortunately, I do have to explain that you have, most probably, alerted the creditor into taking the Interim Charging Order action you have recently received? This was through contacting the Court to fill out an affordibility form as the Court would be obliged to notify the creditor of the details?

    It's unusual for Chargng Orders not to be sought very soon after the CCJ is obtained so is it possible you didn't own a house when the CCJ was obtained? Whether you did or didn't the creditor as now jumped back into action after a delay of years doing nothing? And I don't think that is a coincidence?
  • hayz347
    hayz347 Posts: 27 Forumite
    edited 12 November 2018 at 3:54PM
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    A CCJ should only remain as showing on your credit file for 6 years but it would only be your mortgage lender that this item would be a problem for in, possibly, refusing to grant you a new mortgage knowing you had "bad credit" through a credit file check? So is this what has happened as a CCJ won't block a sale proceeding, otherwise?

    That is spot on the mortgage lender wanted to know what the CCJ was for and I had no idea so contacted the courts.
    Unfortunately, I do have to explain that you have, most probably, alerted the creditor into taking the Interim Charging Order action you have recently received? This was through contacting the Court to fill out an affordibility form as the Court would be obliged to notify the creditor of the details?

    Correct I more than likely did by filling in the affordability form. I just did not want this hanging over my head and would have rather just pay it (if £19k was available)
    It's unusual for Charging Orders not to be sought very soon after the CCJ is obtained so is it possible you didn't own a house when the CCJ was obtained? Whether you did or didn't the creditor as now jumped back into action after a delay of years doing nothing? And I don't think that is a coincidence?

    We have lived in our house since 2001 so I have no idea why the CO has only been applied for now. As you have correctly stated I probably rustled the leaves when I went to fill in the affordability paperwork at the court
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