Hello, i'm new here having only just discovered this site

I have a residential property with a mortgage in only my name which is all upto date with no arrears.

there is about £145,000 equity in it.

However i have 4 other charges on the property ( so total 5 inc initial lender)

these 4 arose out of BTL props that "went wrong",

banks sold the properties off way cheap, leaving shortfall debt which they then turned into secured charges.

the total of the shortfall debt is approx £390,000, yes i know , its huge, ( as i said the banks gave the props away)

so i have £145k equity v £390k shortfall

some questions:

If i try and sell the property what will happen?

( from a maths point of view if i did sell the property the 1st (Original) and 2nd chargeholder would be paid in full but there would no be anything left for the others)

and if i try sell the property, can the 2nd,3rd,4th or 5th chargeholder block it?

what else could i do?

TIA

How did they manage to secure the shortfalls on your private residence ? and why not on the BTLs ? After all the mortgages would have been secured already on the individual BTLs?

Andy

Andy, the BTL props were possessed by the lender after the mortgages were defaulted on. ( Long story (personal), not really relevant now , fact is they all ended up in default)

Then they were sold very quickly at way under market price, hence the shortfall on each BTL property

there were actually 2 separate lenders , one had 2 props, the other had 2 props as well

How they managed, i'm not sure , i wasnt living in the private residence property at the time, that was rented out, i was living in cheaper (rented) accommodation

but they managed to turn unsecured shortfall debt into secured charges ( the courts just rubber stamp almost anything as regards to mortgages/charges i've been told)

So basically they issued court claims...you didnt defend for what ever reason...default judgments......now secured on your personal property by way of charging orders ?

yes correct,

Roughly when did the repossessions happen...over 6 years ago or recently?

The actual possessions were over 6 years ago, not sure exactly.

I would have to check as to when they finally sold/completed

, but the charges only appeared 18 months ago

"Some people tell us the mortgage company didn’t get in touch at all about the shortfall until months or years after the repossession - or has suddenly got back in contact. We’ll consider whether it’s fair for the lender to continue to recover the money - taking into account the time limits that apply and any contact that’s been made in the meantime."

http://www.financial-ombudsman.org.uk/publications/technical_notes/mortgages-shortfall.html

thanks for that..

what i dont know at this time is all the dates involved ,

all i know was that

a) the props were taken after default,

b) they were then up for sale and

c) i ended up with charges to do with the shortfall

for sure i've had no contact with them for over 6 years now

also, is there anything else i can do ( see original post) as i really just want to sell this property now

( in case the ombudsman service can't do much for me)

And you didnt do anything when you received notification of the charge from the Land Registry re Interim Charging Order ?

With regards to your initial question...the first mortgage always takes priority and is the main charge.

If there not enough left after sale...tough they should have done their due diligence and checked the equity.

But there are still further options open (subject to the age of the CCJs) for the Judgment claimant to execute the judgment...Attachment of Earnings (unless your self employed) Warrant of control to recover personal goods to sell...or..Third Party Debts Orders or even Bankruptcy.

See what the OB advise.

Andy

And you didnt do anything when you received notification of the charge from the Land Registry re Interim Charging Order ?

 

Answer: no i did not

 

With regards to your initial question...the first mortgage always takes priority and is the main charge.

 

If there not enough left after sale...tough they should have done their due diligence and checked the equity.

 

Answer: yes that i understand but can they ( 2nd/3rd/4th) stop a sale initiated by me? because if they can then only way out then is to default on the first mortgage to force the sale, which may create more shortfall ( but it shoudn't as there is enough equity) but it will remove all the charges for the new buyer, and turn all the secured charges back into unsecured debt

 

But there are still further options open (subject to the age of the CCJs) for the Judgment claimant to execute the judgment...Attachment of Earnings (unless your self employed) Warrant of control to recover personal goods to sell...or..Third Party Debts Orders or even Bankruptcy.

 

See what the OB advise.

 

 

Andy

see above for my answers

They could make it difficult...shouldn't stop the sale if an agreement can be reached with the others..but you need a good conveyance solicitor and research primary mortgage lender....and priority.

Saves me typing the following out......

https://beatmydebt.com/self-help-guides-resources/charging-orders/selling-your-property-with-a-charging-order

Final word......out of interest ...was it the banks who got judgment.... placed the Charging Orders or DCA numpties ?

Final word......out of interest ...was it the banks who got judgment.... placed the Charging Orders or DCA numpties ?

it was the banks

They could make it difficult...shouldn't stop the sale if an agreement can be reached with the others..but you need a good conveyance solicitor and research primary mortgage lender....and priority.

 

Saves me typing the following out......

 

https://beatmydebt.com/self-help-guides-resources/charging-orders/selling-your-property-with-a-charging-order

Not sure how an agreement can be made with the others, if the property is sold at market price, the other charge holders stand to receive almost nothing so why would they agree? i/they can't make the property worth more than its market value.

On the other hand, if i just stop paying , hand the keys back (as in go down the Voluntary Repossession route) the primary mortgage holder can sell the property without recourse to the other chargeholders so they (the other chargeholders) will end with nothing anyway, i would imagine.

It is possible...if you can get the " others " to accept a payment arrangement and explain the alternative option if they dont..they may agree by consent order to remove the charges....they always have further options if you failed to honor the agreements as stated in post #11 above.

But see what the OB advise if you can show that the judgments were placed after 6 years from the repossessions.

would i have to apply to the court to get the " consent order to remove the charges." ? ( assuming i can get them to agree )

and yes i will be contacting OB about you pointed out

No the Judgment claimant facilitates the Order.