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    • Lucy5
    • By Lucy5 6th Mar 18, 1:30 AM
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    Lucy5
    Charging order problem for mortgage
    • #1
    • 6th Mar 18, 1:30 AM
    Charging order problem for mortgage 6th Mar 18 at 1:30 AM
    Hi. 3 years ago as part of my divorce settlement the court awarded me full beneficial interest in the family home. The judge told me that the property should be transferred to my name by the mortgage company. The mortgage is still solely under my ex husbands name as I was not in a financial position to get a mortgage approved in my name. Lloyds bank said I must apply as a new first time buyer if I want the property transferred to my name on the land registry. The land registry still has my exs name solely listed as the mortgage payer or owner. I am now in a financial position to secure a mortgage but I have just found out that there is a final charging order on the property placed in my exs name for his debts. The final charging order was made 9 months ago. The property is not his but mine as of a court decision in 2015. The charging order was requested in 2017 for my exs debts. How can I challenge the final charging order placed last year? I am in the process of applying for a first time buyer mortgage on this property. Do I need a lawyer? Thank you
Page 1
    • bowlhead99
    • By bowlhead99 6th Mar 18, 2:32 AM
    • 7,988 Posts
    • 14,529 Thanks
    bowlhead99
    • #2
    • 6th Mar 18, 2:32 AM
    • #2
    • 6th Mar 18, 2:32 AM
    Do I need a lawyer? Thank you
    Originally posted by Lucy5
    The judge said you should get the beneficial interest in the property but you were unable to get it because you weren't in a financial position to take on the mortgage debt that allowed the beneficial interest in the property to exist. So presumably the beneficial interest in the property stayed with the husband. Did he continue to pay off the mortgage (i.e. paying down /servicing the debt that allowed 'your' interest in the property to exist), or did you do that?

    Then some creditors have placed an order on the property which was legally his (though not beneficially his, if you could have raised a mortage to take it off him, which you couldn't and didn't).

    If you want to contest someone's right to do something you do not need to be a lawyer but need to know the relevant law to know what rights you have that you could assert and to what extent you can remove the charge or realstically make the ex pay it off to remedy the situation.

    By the fact you are here asking questions because you don't know the law yourself, but are not going to get comprehensive advice for you exact facts and circumstances here for free, I'd say that yes you need a solicitor. Alternatively you will need to spend some time researching the law.

    Probably the best approach is to go back to your divorce lawyer and say that 3 years ago, as they know, you got a settlement - but it it didn't work out because of xyz, what next. If you didn't use a solicitor at that time - just represented your own interests instead - now might be time to go shopping for one.
    • Lucy5
    • By Lucy5 6th Mar 18, 2:55 AM
    • 2 Posts
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    Lucy5
    • #3
    • 6th Mar 18, 2:55 AM
    • #3
    • 6th Mar 18, 2:55 AM
    Hi, thanks for the reply. I used a solicitor and barrister, I continuously paid the mortgage a few years prior to the settlement and afterwards, up to this date. The original case was between myself, my ex and a third party wishing to secure a share of the property's equity because of my exs debt. The judge ruled that the property was mine and that my ex and the third party creditor would not receive a share of the 50% equity in the house. My ex has no claim on the house as far as the court ruling is concerned, from my limited understanding of the law, as the judge made remarks to the effect that future creditors of my exs could not make a claim on the property. I lost my job just after the settlement, so could not secure a mortgage immediately. The charging order is for roughly 10,000. I know from experience legal fees can be very high. Would it cost more than 10,000 in legal fees to attempt to set aside the charging order? Is it a one off yes or no hearing or a long prolonged affair, which increases legal fees. Thank you
    • bowlhead99
    • By bowlhead99 6th Mar 18, 3:32 AM
    • 7,988 Posts
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    bowlhead99
    • #4
    • 6th Mar 18, 3:32 AM
    • #4
    • 6th Mar 18, 3:32 AM
    The charging order is for roughly 10,000. I know from experience legal fees can be very high. Would it cost more than 10,000 in legal fees to attempt to set aside the charging order? Is it a one off yes or no hearing or a long prolonged affair, which increases legal fees. Thank you
    Originally posted by Lucy5
    A fifteen to thirty minute introductory meeting with a legal professional should be enough to establish the basic facts and likely costs before you decide whether you want to engage them to do some work for you.

    If they charge 100 per hour the price will likely be different than if you employ a QC at 500-1000 per hour. Of course the outcome could be different, too (at least the 500ph one will tell you that)
    • silvercar
    • By silvercar 6th Mar 18, 8:24 AM
    • 37,308 Posts
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    silvercar
    • #5
    • 6th Mar 18, 8:24 AM
    • #5
    • 6th Mar 18, 8:24 AM
    At the point where the judge awarded you the beneficial interest you should have registered matrimonial home rights on the deeds ie by by completing the HR1 form and registering it with Land Registry.

    https://www.gov.uk/government/publications/notice-of-home-rights-registration-hr1
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