Charges on property

[davefirewalker]

While reading through this website and becoming overwhelmed with other peoples successes, and the wealth of knowledge here i thought that i might ask for advice on a problem thats been hounding me for years

Many years ago i was in partneship with someone and the business was doing reasonably well, until he started drinking the profits...women etc etc

to cut a very long story short, towards the end with a £20,000 UNSECURED overdraft we had an excellent business opurtunity and needed to finance it. we got a further £10,000 but had to secure it on our properties........I know I know Not long after that it all went belly up And I instigated winding up procedures while my partner was away on holiday (we had turned into a limited co by that time and I reckoned we were insolvent) I just wanted to get out

Anyway he disappeared and left his wife etc and It looks like I ended up with the debt as a charge on MY property (singly and severable). I dont know what happened to his house.

That was in about 1988/9. apart from intial panics etc I managed to keep the house
And still do. But I think the charge remains? I havent had any comunications from the bank (NatWest) for over 15 years.

Can anything be done ???

Dave

[blueskies]

I think, and I stand open to correction, that if a debt is not acknowledged for a period of more than 6 years it becomes unenforcable and therefore the charge should be removed from the property. Have you had contact with anyone over the last 6 years relative to this debt?

[davefirewalker]

No nothing at all

Dave

[davefirewalker]

Hmmm just found this

Limitations act 1980

20:--

(1) No action shall be brought to recover-

(a) any principal sum of money secured by a mortgage or other charge on property (whether real or personal); or

(b) proceeds of the sale of land;

after the expiration of twelve years from the date on which the right to receive the money accrued.

[BotB]

There's a recent case about this issue if I remember correctly. I'll try to find it. From memory, I think the bank has lost the right to force a sale of the property but they can still recover the money charged to the property when it does get sold even though more than 12 years has elapsed since it was registered.

PS. This is the case I had in mind.

Doodes v Gotham & Perry 2005.

That case says a creditor with a charging order on the debtor's property is statute barred for an order of sale after 12 years. But the debt is still recoverable - it just means the creditor has to wait until the debtor decides to sell.

[davefirewalker]

Thanks for that, its cleared up a few things

Dave