Charging Order? The myth

Rangers123 - sorry for the delay in posting again but I have been in discussions with colleagues over the specifics involved here. The outcome is a positive one with regards the issues raised so hopefully it will put the sale/purchase back on track for you. But I wanted to update you now to try and ease the frustrations you mentioned earlier

I will be emailing the buyer's conveyancer with regards their original enquiry made in June and the response we provided.
A colleague will be emailing your own conveyancer who submitted their own enquiry at the end of July as it was they who replied to that enquiry on 1st August.

I'll post a general response here once those emails have been sent as I feel it is proper to notify the conveyancers directly and share the specific details with them. I'm sure you will understand.

Rangers123 wrote: »

I can't thank you enough for spending time looking into this. I truly hope your intervention can break the deadlock. Sincerely appreciated.

We have now emailed both conveyancers to advise that providing the form K restriction is complied with and the named (on the register) creditor is notified of the sale by two or more registered owners for value then it will be overreached and automatically cancelled when the purchase is registered.

The buyer's conveyancer contacted us initially to query whether the above was still true in light of the fact that the creditor, a company, had been dissolved. Our response sign-posted them to our guidance on corporate insolvency. As a result, and perhaps quite naturally, I assume they contacted your conveyancer to assist.

Although the creditor's insolvency is relevant as to the debt/the CO it is not relevant with regards the overreaching of the form K restriction in the circumstances mentioned above.
I have highlighted in the thread a few times how the devil is always in the detail re the Qs asked of us but in this case whilst I believe the reference to the creditor's insolvency caused us to answer as we did, we should have explained the above and how it did not impact on the requirements for the sale overreaching the form K restriction.

Your conveyancer raised their own enquiry with us in an effort to remove the form K restriction. Removal in this case was not required as explained but doubtless our reply to the buyer's conveyancer caused them to then refer.
Our response then sought to explain how the insolvency affected the debt and how the Treasury Solicitor, for the Channel islands in this case, might be involved. Those details are in the original response and today's additional reply.

Your conveyancer has been provided with an explanation of the specifics involved and additional information re how the creditor's insolvency may affect the debt. However as already stated that is after the sale/purchase has completed and does not impact on how we would treat the purchaser's application/automatic cancellation of the form K restriction.

Provided the restriction is complied with as per the registered details and the application is to register a transfer as described I do not envisage any further issues.

eggbox from a wider perspective this example does not alter the position already shared and explained in your thread. The corporate insolvency is not significant to how a form K restriction might be overreached and automatically cancelled.

The creditor's insolvency has, from a registration perspective, the same impact as say the debt being sold on as unless the register reflects such a change of circumstances a purchaser/their conveyancer need only comply with what is actually registered and not 'chase the debt' so to speak. The debt is the seller's concern after all in such cases and not the purchaser's

The relevance of the Treasury Solicitor, there is also a Channel Islands 'version, is not significant re the overreaching. They would be involved re the actual debt hence reference to them in Rangers 123's posts previously