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sequenci

A guide to Charging Orders & Orders for Sale

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hi , if an interim charing order is in place then it is discgarged and not granted when they go for the final charging order, can the claimant apply again for a new order etc.. or do they have to wait a certian length of time ?

 

thanks

icc

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hi , if an interim charing order is in place then it is discgarged and not granted when they go for the final charging order, can the claimant apply again for a new order etc.. or do they have to wait a certian length of time ?

 

thanks

icc

 

If your circumstances havent changed at all then where will it get them, you can just refer to the discharge if they try again in any defence.

 

S.


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Hi

Now I may be in the wrong place but are we talking about Charging orders or Restrictions-has anybody any experience of the following scenario?

Hi

I am struggling at the moment and wonder of anyone has any ideas. We (wife and I)are selling a property with two joint mortgages and 4 Restrictions placed upon the address in my sole name and the Restrictions are the standard type with wording which tells me that I cannot sell without notifying the four restriction holders.

My conveyancer says that I must settle all charges and that there is not enough money to pay the last one off.

Thus the sale is stuck. I say all he need do is notify and he says he must pay it all off to get good title?

Can anyone help or point me to definitive research or precedent on the matter

Thanks

Hobon

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Hi

Are they charging orders or ar they restrictions? This may make a big difference

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Hi

Now I may be in the wrong place but are we talking about Charging orders or Restrictions-has anybody any experience of the following scenario?

Hi

I am struggling at the moment and wonder of anyone has any ideas. We (wife and I)are selling a property with two joint mortgages and 4 Restrictions placed upon the address in my sole name and the Restrictions are the standard type with wording which tells me that I cannot sell without notifying the four restriction holders.

My conveyancer says that I must settle all charges and that there is not enough money to pay the last one off.

Thus the sale is stuck. I say all he need do is notify and he says he must pay it all off to get good title?

Can anyone help or point me to definitive research or precedent on the matter

Thanks

Hobon

 

Hi there.

 

You need to use Barrett & Barrett v Halifax (1995) 28 HLR 634, [1995] NPC 146. This case is where the lenders refused sale but I think the principles involved are similar.

 

Here is the lowdown:

 

A husband and wife fell into arrears in respect of the mortgage over their house, which they owned jointly. The building society obtained an order for possession which was then suspended several times in order for arrears to be paid. The order was suspended a final time so that the couple could find a purchaser for the property while it was still occupied and the fact that it was subject to a forced sale was not apparent. The property was worth less than the secured sum. When the couple found a potential purchaser the building society objected to the proposed sale because its policy was not to allow borrowers with negative equity to conduct sales themselves when no proposals had been made for repayment of the shortfall. The couple applied under the Law of Property Act 1925, s 91(2) for a sale of the property. Expert evidence put forward by the couple showed that where a mortgagee exercised its power of sale after having taken possession, a lower price was generally obtained than if the sale is conducted by the mortgagor. In addition, the couple argued that if the building society were to conduct a sale, there would be a delay of some months before a new purchaser could be found. The building society contended that they should be permitted to take over the existing proposed purchase. Held, if the mortgagee can demonstrate that he will be deprived of some tangible benefit if a sale is ordered, the discretion of the court to order the sale of mortgaged property will generally not be exercised. However, factors which the court would take into account when exercising its discretion did not include a mortgagor’s policy such as that held by the building society in the present case. If the building society conducted the sale it would have the advantage of receiving the full purchase price paid, leaving the professional parties who had acted for the couple without payment. Where the possession order had been stayed so that the couple could obtain the best possible purchase price, this was not an advantage which should be taken into account. The court was obliged to balance the advantages of the proposed sale to both parties. The advantage to the couple of the court ordering the sale to go ahead was that they would receive a market price for their property, and there was no discernable advantage to the building society in refusing the sale. Accordingly, the sale would be ordered, and, furthermore, the couple were entitled to deduct their reasonable costs and expenses of the sale before accounting to the building society.

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Hi

Now I may be in the wrong place but are we talking about Charging orders or Restrictions-has anybody any experience of the following scenario?

Hi

I am struggling at the moment and wonder of anyone has any ideas. We (wife and I)are selling a property with two joint mortgages and 4 Restrictions placed upon the address in my sole name and the Restrictions are the standard type with wording which tells me that I cannot sell without notifying the four restriction holders.

My conveyancer says that I must settle all charges and that there is not enough money to pay the last one off.

Thus the sale is stuck. I say all he need do is notify and he says he must pay it all off to get good title?

Can anyone help or point me to definitive research or precedent on the matter

Thanks

Hobon

 

as far as i know, you only need to inform them of the sale, it's then up to them to follow this through. If the sale is complete, then they can ask you for the money or take it through court.

 

a good conveyancer will inform them a day or so before the sale, thus not giving them enough time to respond before it. This is not unlawful but a use of the restriction in much the same way they use it.

Edited by tifo

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as far as i know, you only need to inform them of the sale, it's then up to them to follow this through. If the sale is complete, then they can ask you for the money or take it through court.

 

a good conveyancer will inform them a day or so before the sale, thus not giving them enough time to respond before it. This is not unlawful but a use of the restriction in much the same way they use it.

 

This is all 100% true!

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This is all 100% true!

 

Thanks. There was an article on here (from a DCA i think) which made the point that a restriction (following a charging order) on a joint property is totally useless for a creditor because the sellers can inform and then sell, thus fulfilling their obligation to inform only.

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Hi

Thank you everyone for the help and advice-nice to know you are not alone

Hobon

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Thanks. There was an article on here (from a DCA i think) which made the point that a restriction (following a charging order) on a joint property is totally useless for a creditor because the sellers can inform and then sell, thus fulfilling their obligation to inform only.

 

If the judgment is against just one person then there can be no equitable charge placed on the property. All the creditor can do is register a restriction, but that still doesn't give them any priorty. All the conveyancer has to do is let the restriction holder know ONCE the house has been sold - so that they can try and chase for payment at that point.

 

It's good to know, it's it?

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If the judgment is against just one person then there can be no equitable charge placed on the property. All the creditor can do is register a restriction, but that still doesn't give them any priorty. All the conveyancer has to do is let the restriction holder know ONCE the house has been sold - so that they can try and chase for payment at that point.

 

It's good to know, it's it?

 

Does this apply to a remortgage as well ?

 

Are Solicitors likely to be aware of the law with regard to this ?

 

If you are changing from joint ownership to single ownership (ie after a divorce) will the amount advanced just have to be enough to cover the outstanding mortgage

and not the charging order. In my case the CO is in my name the mortgage joint but wish to give the house to ex wife.

 

If this is possible what happens to the CO ?

 

Are potential lenders likely to be a problem in these circumstances ?

 

Ta

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If this is possible what happens to the CO ?

 

the charging order IS the restriction .... which is a 'charge' against the equity in your property and it clearly states the creditor must be INFORMED of any sale .... not that they should be paid from any sale.

 

the 'charge' from a mortgage provider has different wording.

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Can someone help me? Is it true that if a creditor goes after a ccj without informing other owners of the property then the ccj is invalid. I'm sure I've seen it somewhere but I cant find it. Any advice at all would be helpful.

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The creditor can go for a CCJ without notifying other residents but must contact them about a CO application.

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Diolch Cymru

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Sorry but do you have link where I can get this information. Thanks

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Thank you so much for your trouble, Sequinci but i cant find the specific piece I want. Can you help me further. Thanks

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So you're trying to find where is states that a creditor doesn't have to inform other creditors of their intention to obtain a County Court Judgment, is that right?

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Thank you so much for your trouble, Sequinci but i cant find the specific piece I want. Can you help me further. Thanks

 

 

Check the CPR. All known owners, charge holders or creditors should be notified of the charging order application. 99% of them won't care or be able to do anything about it.

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I know its not the case law you seek but it explains the process

 

http://www.bllaw.co.uk/pdf/financeandrecoveries_0806_charging%20orders%20on%20property.pdf

 

S.


Are You as Anonymous on CAG as You Think You Are? *Link*

 

The CAG is a free help site,should you be offered help that requires payment,please report it to site team.

 

Deal with your debts:

STEP ONE - Dont Panic! | STEP TWO - Priority & Non Priority Debts | STEP THREE - Personal Budget Sheet | STEP FOUR - A SAFE bank Account | STEP FIVE - Dealing with Priority Debts | STEP SIX - Non-priority Debts | STEP SEVEN - Non-Priority Debt-Repayment Opt1 | STEP EIGHT - Non-Priority Debt-Repayment Opt2 | STEP NINE - Perils of Consolidation | STEP TEN - RE-Evaluate Frequently

 

***** SERIOUSLY IN DEBT, DONT KNOW WHAT TO DO, TRY NationalDebtLine's MoneySteps *****

 

 

IMPORTANT: Please take my advice in the spirit it is given and on the basis that I am expressing my opinion, These opinions are not endorsed by CAG in anyway and are offered informally without prejudice or warranty of any kind. These opinions are solely based upon the knowledge I've gained from this fantastic site and life in general. I have NO legal training.

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Found it (I think) :-)

 

Here ->> http://www.legislation.gov.uk/uksi/2003/1417/schedule/4/made

 

 

Form K (Charging order affecting beneficial interest—certificate required)

 

No disposition of the [registered estate or registered charge dated [date]] is to be registered without a certificate signed by the applicant for registration or his conveyancer that written notice of the disposition was given to [name of person with the benefit of the charging order] at [address for service], being the person with the benefit of [an interim] [a final] charging order on the beneficial interest of (name of judgment debtor) made by the (name of court) on (date) (Court reference ... ... ... ...).


Are You as Anonymous on CAG as You Think You Are? *Link*

 

The CAG is a free help site,should you be offered help that requires payment,please report it to site team.

 

Deal with your debts:

STEP ONE - Dont Panic! | STEP TWO - Priority & Non Priority Debts | STEP THREE - Personal Budget Sheet | STEP FOUR - A SAFE bank Account | STEP FIVE - Dealing with Priority Debts | STEP SIX - Non-priority Debts | STEP SEVEN - Non-Priority Debt-Repayment Opt1 | STEP EIGHT - Non-Priority Debt-Repayment Opt2 | STEP NINE - Perils of Consolidation | STEP TEN - RE-Evaluate Frequently

 

***** SERIOUSLY IN DEBT, DONT KNOW WHAT TO DO, TRY NationalDebtLine's MoneySteps *****

 

 

IMPORTANT: Please take my advice in the spirit it is given and on the basis that I am expressing my opinion, These opinions are not endorsed by CAG in anyway and are offered informally without prejudice or warranty of any kind. These opinions are solely based upon the knowledge I've gained from this fantastic site and life in general. I have NO legal training.

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Thank you Shadow for taking the time. This looks like what I'm looking for, bit gobbldeygook in my head at the mo must read it slowly and digest every word.

Thanks again everybody.

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Hmm I'm convinced I quoted the wrong part... the bit I quoted was in reference to the solicitors having just to provide certified proof that they have let other creditors who have a restriction on a property know that the house is being sold...

 

..But I do think you'll find what you need in that set of regulations on conveyancing & Land registry rules.

 

The Land Registration Rules 2003

http://www.legislation.gov.uk/uksi/2003/1417/contents/made


Are You as Anonymous on CAG as You Think You Are? *Link*

 

The CAG is a free help site,should you be offered help that requires payment,please report it to site team.

 

Deal with your debts:

STEP ONE - Dont Panic! | STEP TWO - Priority & Non Priority Debts | STEP THREE - Personal Budget Sheet | STEP FOUR - A SAFE bank Account | STEP FIVE - Dealing with Priority Debts | STEP SIX - Non-priority Debts | STEP SEVEN - Non-Priority Debt-Repayment Opt1 | STEP EIGHT - Non-Priority Debt-Repayment Opt2 | STEP NINE - Perils of Consolidation | STEP TEN - RE-Evaluate Frequently

 

***** SERIOUSLY IN DEBT, DONT KNOW WHAT TO DO, TRY NationalDebtLine's MoneySteps *****

 

 

IMPORTANT: Please take my advice in the spirit it is given and on the basis that I am expressing my opinion, These opinions are not endorsed by CAG in anyway and are offered informally without prejudice or warranty of any kind. These opinions are solely based upon the knowledge I've gained from this fantastic site and life in general. I have NO legal training.

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style="text-align:center;"> Please note that this topic has not had any new posts for the last 1312 days.

If you are trying to post a different story then you should start your own new thread. Posting on this thread is likely to mean that you won't get the help and advice that you need.

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Thank you
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