Legal Charge over My Home

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Bella_del_Rey
Bella_del_Rey Posts: 2 Newbie
in Stoozing: free cash from credit cards
Good evening,

I’d be most grateful for any advise as my estranged husband has got us into a financial mess.......

To cut a very long and unbelievable story short, he decided to prioritise non priorities instead of paying school fees amongst other things.

The school is now being paid £2k per month by my estranged husband although this took him months to do. However, they’re also insisting on a legal charge. There are arrears on the repayment mortgage but the monthly interest is being paid although primarily by me. I’m concerned that the Bank will not renew the interest only option which is renewed every 3 months if they don’t see improvements in the situation. I’m assuming these improvements mean, that the home is sold or that we start paying off the arrears.....?

I explained my concerns to the school as I’m worried about being repossessed but they showed no empathy nor compassion for my sons who were once their pupils. For an institution to have charitable status (in order to pay less taxes) and behave like an aggressive creditor does raise some questions so may lobby my local MP!

The solicitors acting for them advise that as my eldest son is now 18, he’ll need to give his permission to the legal charge. What are the implications if he say, chooses not to sign?

Can anyone help?

Many thanks

Bella
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Comments

  • pogofish
    pogofish Posts: 10,852 Forumite
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    You actually live in a credit card and manage to stooze with it at the same time - Wow...!
  • badmemory
    badmemory Posts: 7,791 Forumite
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    The problem is that these institutions apply for charitable status simply to avoid taxes. They seem to rarely actually be very charitable. I have no idea of the answer to your question but just wanted to express my sympathy for your position. Hopefully someone will be along shortly who can provide you with an answer.
  • unforeseen
    unforeseen Posts: 7,280 Forumite
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    They may be a charity but you have had a service from them so they want to ensure that they get paid for it.

    It sounds like they struggled to get you/husband to start paying the debt so now want some protection.

    If they can't get some sort of protection for their debt then think what their other options will be to get the money. It sounds like they have been patient up to now but that could be running very thin.
  • Shakin_Steve
    Shakin_Steve Posts: 2,700 Forumite
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    pogofish wrote: »
    You actually live in a credit card and manage to stooze with it at the same time - Wow...!
    I'm sure the OP will be horrified that she posted in the wrong section. Thank goodness that we have people with nothing better to do to point it out.
    I came into this world with nothing and I've got most of it left.
  • Vortigern
    Vortigern Posts: 3,243 Forumite
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    Bella_del_Rey wrote: »
    The solicitors acting for them advise that as my eldest son is now 18, he’ll need to give his permission to the legal charge.
    While your son may have received a private education, I doubt that he personally is contractually obliged to pay for it. The debt should be the parents' responsibility, not his.

    Unless your son is somehow the owner or co-owner of your house I doubt that he can authorise a legal charge.

    Perhaps board guide could move this thread to a more appropriate part of the forum?
  • pogofish
    pogofish Posts: 10,852 Forumite
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    Shakin_Steve wrote: »
    I'm sure the OP will be horrified that she posted in the wrong section. Thank goodness that we have people with nothing better to do to point it out.

    OP had all the resources needed to find and post in an appropriate forum laid-before them as part of their signup..!
  • eddddy
    eddddy Posts: 16,440 Forumite
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    Whilst many independent schools are charities, they probably cannot continue to function if parents don't pay their school fees. (The teachers wages etc have to be paid.)

    It sounds like your sons are now ex-pupils, so given that there is a large debt, I guess the school continued to educate them when no fees were being paid (which seems fairly compassionate).

    And at the time, it sounds like the fees were not paid through choice, rather than financial difficulties.


    You probably need to find out more about the terms of the proposed payment arrangement. For example, it could be that the school said:

    We will accept £2k a month plus a charge on your house, or we will take you to court to claim the full amount.

    If that suggestion was correct, and your son refused to sign the charge, I guess the school would go down the court route.
  • Sncjw
    Sncjw Posts: 3,509 Forumite
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    Charitable because they give scholarships to people who have the chance to pass their tests and who can!!!8217;t afforf to go.

    They still need paying as agreeged whentou signed the contract to send the kids the school
    Mortgage free wannabe 

    Actual mortgage stating amount £75,150

    Overpayment start date 1/3/23.

    Starting balance £66,565.45

    Current balance £63,787.16

  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    What Vortigern said, the son can no more agree to a charge over parents house than I could and I'm sure solicitors will be aware of that ! Something is missing from the telling.
  • ValiantSon
    ValiantSon Posts: 2,586 Forumite
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    This doesn't make sense. As others have said, your son is not needed to authorise the charge, unless he is a co-owner of the house. The debt is yours and your husband's, not your son's.

    Many independent schools are charities (although not all), but they are also businesses. They charge fees for their services (like any other business) and they are entitled to expect those fees to be paid. They also provide charitable financial assistance through bursaries to some pupils whose families could not afford the full fees, and further charitable assistance in the form of scholarships, to those pupils who display particular talent in a specific area, e.g. academic, music, sport. They are not charities because they can be used to provide an education at no cost to anyone who fails to pay the bill. Their charitable status means that they do not make a profit, but that all funds are re-invested in the core charitable purpose, i.e. education of children.

    Many independent schools show extraordinary goodwill, well beyond what many other businesses would, by continuing to educate children whose parents are in arrears. This can extend over a significant period of time, with some children actually benefitting from up to two years of education without payment (to the end of a Key Stage). However, even in this position, the school will ultimately expect to be paid, and to this end will try to come to an arrangement with parents that allows them to make the necessary repayments.
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