Secured Loan - trying to sell property

[MPathome]

Hello

I'm new to forum today - have been searching for a while to find some info regarding my situation, but cannot find anything specific, so would really appreciate any assistance/guidance help anyone can offer.

I need to sell my house, and am in a negative equity position. I have a buyer, who wants to exchange asap. I have a mortgage with a high street bank, which will easily be covered by the sale, however, I also have a secured loan with FP (read quite a lot about them on other posts, and it all sounds familiar). When I first accepted the buyers offer, I contacted FP to let them know I needed to sell, and what the shortfall would be (35k). They initially said a shortfall would be converted into an unsecured loan, however they have now said they will not even contemplate allowing me to sell as 35k shortfall is more than 50% of the total debt (£50k).

So, I am in a position where I have a buyer looking to exchange, but 'apparently' FP stopping me. I have not received anything in writing from FP. I have checked my loan agreement, which states they have a legal charge. I spoke to my mortgage company last week, to inform them of the situation. I suggested voluntarily surrendering my keys, however they said that wasn't the best option, I should take advice from CAB or similar, and I quote 'they didn't think first plus could stop the sale'?

So my questions are:

1) Has anyone had a similar experience?
2) Legal Charge - I have read the conditions, and they seem to be more concerned with the lender having the right to sell, rather than the property owner selling. Do they have to give their permission for me to sell - can they stop my sale?
3) I read about fair and best price, which my sale is, however, it seems to relate to mortgages and not secured loans?
4) My legal charge makes reference to the consumer credit act? It states, 'this legal charge will only secure moneys due under an agreement regulated by the consurem credit act 1974 if the agrrement states that it is to be secured by this legal charge' - but I thought cca only relates to £25k or less?

Any help would be most appreciated - I have spent hours trying to find other posts/advice, as I didn't want to waste anyones time, but I just cannot find anything similar. I will get advice from CAB or similar, but I know that they are swamped at the mo, and would like as much info as I can get. Thank you. M

[rory32]

Hi and welcome to CAG.

I fail to see how they would be able to stop any sale of the property. You are correct that the CCA 1974 only covers sums up to £25K. How did the secured loan come about, was it a consolidation loan? If you speak to the CAB you must ensure that you speak to a qualified debt advisor. As another alternative you may wish to speak to National Debtline FREEPHONE: 0808 808 4000
Monday to Friday 9am to 9pm
Saturday 9.30am to 1pm
24-hour voicemail.

[MPathome]

Thanks for your reply Rory. Yes it was a consolidation loan. I have spoken to National Debtline who have basically said the same as you. They don't believe the sale can be stopped and that I should arrange for my solicitor to deal with them. They suggested it was a 'scare' tactic to try and ensure I stay in the property and payback the loan. I questioned the advisor about the Legal charge, and his answer was 'a legal charge on what?' ' the house value has decreased, what are they going to do, sit it out until house prices increase, no court would allow that, and anyway the mortgage company would repossess and sell asap'.

I have put a call into the solicitor today, I am just waiting for them to come back to me to get the ball rolling and to ask her to confirm the advice received so far. Thanks

[rory32]

Thread moved to Mortgage and Secured Loans Forum.

[MPathome]

Well now I am really confused. I have just spoken with my solicitor who has said that I cannot sell my property as the solicitor cannot continue with the exchange as she cannot guarantee that all money will be paid and therefore all charges on the property will be released? She has advised I go back to FP and request again that they release the charge.

I feel like I am going around in circles........

[MPathome]

Just spoken with FP - asked the lady if I could speak to someone again about releasing the charge, and if they will not, getting their refusal in writing, but she put me through to answerphone where I had to leave a message and they will call me back!!

Also spoke to National Debtline again, to clarify. This time they stated that FP can refuse to release the charge, and if they do this (get it in writing) then I can appeal to the courts under 'The Trusts of Land & Appointment of Trustees Act 1996' to apply for the right to sell. Has anyone done this? How long does it take? I have a purchaser waiting to exchange contracts and fear I will loose them!! I really cannot understand why FP are refusing, as either way, if it goes to court or worse still I hand back the keys there will still be a shortfall, probably more of a shortfall if I hand back the keys as the property will no doubt go to auction?

Does anyone know how to go about the court action?

Has anyone had any success with persuading FP to release the charge?

Any help much appreciated!!