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objecting to the registering of a charge against your property


swayze
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Just had a meeting with the mortgagee of the hotel.(private individual) and he has also recived a letter from the council stating that he is no longer has first charge on the property the council do.

 

They quoted case law surporting their view But this seems extrodinary that a first charge can lose its place to a local athority.

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Below is an extract from a letter from the head of building control dated 11th June.

 

"Please find enclosed the estimate for the demolition work. The Council has accepted the Phase one sum of £24,250 minus £1,600 Leaving £2,2650. I am happy for you to negotiate a lower price as long as this does not hold up the contractor starting on site"

 

Below is a copy of a letter signed by the demolition co and Council on the 12th June.

 

"Dear Sir

 

In accordance with our verbal agreement.Could you confirm that the total price of the demolitionof the xxxxxx hotel would be no more than £25k + vat This price includes phase one and two.

 

SIGNED on behalf of xxxxx demolition co

 

Signed on behalf of XXXXXXXXXX borough council "

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Latest Update

 

Just had a meeting with the mortgagee of the hotel.(private individual) and he has also recived a letter from the council stating that he is no longer has first charge on the property the council do.

 

They quoted case law surporting their view But this seems extrodinary that a first charge can lose its place to a local athority.

 

There are certainly some statutory charges that take priority over non-statutory charges. The theory is that such a charge ought to take priority because it relates to something that was done to preserve the property and therefore protects the owner's interest and accordingly any lender's interest

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To answer an earlier point.

 

I am not familiar with the working of the Building Act. I was just answering Swayze's question about whether the council could register a charge. I made the point that at least part of the money demanded by the council (I ought perhaps to have said if incurred in accordance with proper procedure under the Act) must give a right to register a charge and that therefore from that point of view only it was of no practical significance if there was a dispute as to the amount due. Objecting to the registration is a waste of energy unless there is an intention to sell the property. When the matter is resolved and what is agreed is owed is paid, the charge will be removed. Swayze's action needs to be to determine what is owed.

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