Voluntary charge on a property

[Santos L Helper]

Hi all,

 

I have been searching around the web for answers to a question which I have been pondering over for a while concerning putting a voluntary charge on a property.

 

I know that in the event of your death the first charge (your mortgage) is paid off, which is obvious but my situation is that a relation of mine has been paying the vast majority of my mortgage off since I fell on hard times 2 years ago. I went from a decent income to earning just half of what I used to earn.

 

Despite trying to earn more money I have been struggling to make ends meet and instead of losing my home I have been fortunate enough to receive help from a kind relative.

 

There is no legal arrangement or anything like that, just a written agreement between the two of us (witnessed by a third party) that any sums of money paid towards the mortgage would be paid back (with 5% interest) in the event of my death or on the sale of the house.

 

The only worry I now have is if any of my creditors manage to get a charging order due to the new rules coming into force, this will leave the person who has helped me at the bottom of the pile.

 

Would it therefore be possible for said relative to get a voluntary charge off myself on the property?

 

Any advice or suggestions as always greatly appreciated.

 

Regards

 

Santos

[42man]

It's an interesting point Santos.....and I don't know the answer, I imagine something could be drawn up by a solicitor....OR you could get the relative to take you to court to get a charging order !!! sounds silly I know but it might be cheaper !!

[honey5]

im not sure but would you not be able to sign a % of your property over to your kind relative now, prior to any instigation from other outside agencies?

 

honey x

[gizmo111]

You could do as honey suggests and alter the deeds so that your relative owes a % of your property now.

You could agree a voluntary charge.

You could take out some life insurance to cover what you will owe your relative.

What sort of equity do you have currently in relation to debts?

[Santos L Helper]

What sort of equity do you have currently in relation to debts?

 

 

The equity in relation to debts is if the house is sold it may just cover the outstanding mortgage.

 

Outstanding debts to 8 creditors is more than £20K

 

If one of my creditors tries for a charging order after obtaining a CCJ and a forthwith judgement, will it affect the outcome of a charge on my property because it is unfair gain to one creditor over the rest?

 

Worst case scenario would be for all of them to get a charge on the property then get their heads together to force an order of sale:eek:

 

So far only one has gone down the court route and at present that one is in the process of being defended.

 

The rest of them keep coming forward on the attack but not actually issuing claims. It looks like they are waiting for the new law about instant charging orders to come into effect, then I expect 7 claim forms from Northampton CCBC to drop on my mat:eek:

 

Better get saving up my pennies to pay for all the special delivery letters I will be posting:roll:

 

Regards

 

Santos