Charges on property can I still sell it?

[midnight10]

Hi

I am with Kensington mortgages and are in a lot of arrears, there are 2 charges on property can I still sell the house? The outstanding mortgage is £125000 and there are 2 charges for £4000 each had the house valued at £148000, also kensington are adding £50 every month, any help appreciated

[pedross]

Hi

 

You can still sell the house and you will need a solicitor to deal with the sale. When your solicitor receives the funds from the buyers solicitors they will have to pay kensington and pay off the 2 charges to give the buyer clear title and then you will get the balance.

 

Pedross

 

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Edited August 29, 2009 by pedross

[midnight10]

Hi

 

You can still sell the house and you will will need a solicitor to deal with the sale. When your solicitor receives the funds from the buyers solicitors they will have to pay kensington and pay off the 2 charges to give the buyer clear title and then you will get the balance.

 

Pedross

 

If you find this useful please click my scales on the left

 

Thank you Pedross that has put my mind at rest phew..

[jansus]

dont forget to at least try and claim the charges back later as well:)

 

see other threads on here tonight and my posted links

[midnight10]

dont forget to at least try and claim the charges back later as well:)

 

see other threads on here tonight and my posted links

 

OK thanks I will and let you know.

[Mrs E Blackadder]

Hi, yes you can still sell your property - infact that is probably what the holders of the charges want you to do!!! There are charges on my property and I was advised that if I was to sell then I would probably need a specialist solicitor who deals with this sort of thing. Best thing for you to do would be to approach 2 or 3 and see a) whether or not they do have to specialise and b) how much they charge.

[Crapstone]

Hi

I am with Kensington mortgages and are in a lot of arrears, there are 2 charges on property can I still sell the house? The outstanding mortgage is £125000 and there are 2 charges for £4000 each had the house valued at £148000, also kensington are adding £50 every month, any help appreciated

 

What has Kensington done so far? Have they started repossession proceedings?

 

Complain about the charges and then take it up with the FOS, just to give yourself some breathing space whilst it's disputed. If you need any help on negotiating the arrears or help with rehousing just ask and someone will be able to advise you on what your options are.

[midnight10]

What has Kensington done so far? Have they started repossession proceedings?

 

Complain about the charges and then take it up with the FOS, just to give yourself some breathing space whilst it's disputed. If you need any help on negotiating the arrears or help with rehousing just ask and someone will be able to advise you on what your options are.

 

Very helpful I will do that no proceeedings yet (fingers crossed)

Thank you all for helping

[starz 61]

Since posting my original post the mortgage outstanding is now over £130000 how have it gone up that much? my house is still up for sale and there is a lot of interest in it. I had a letter from moore & blatch Kensingtons solicitors saying I breached my court order and they will apply for eviction. But a few years ago I got into difficulties and went to court and was ordered to pay my mortgage + £100 per month on top I was doing that for quite a few months until Kensington wrote to me and said we will add the arrears to the remainder of your mortgage term and continue paying your normal monthly payment I immediately agreed to that signed the form and sent it back so does that mean the original court order is void, because I carried on paying my monthly payment of around £700 mth until Kensington put it up to over a £1000 month and we fell into drastic arrears. they put £50 charge every month also can I claim any of this back now or should I wait until I sell or they repossess? I am so confused.

[starz 61]

Also, cos I seperated with husband and both the charges were in his name and my solicitor have told me I am entitled to 60/40 because of my children I mean if we sell we will only get about £9000 how do I stand with the charging orders the house is in both names but he had the 2 loans/charging orders in his name only. Can anyone advise please.

[tifo]

if your house is jointly owned then the charging orders make no difference to the sale as your solicitor does NOT need to send any money to the charge holders but only INFORM them of the sale of the house. A good solicitor will do this just before the sale is due to complete so as not to allow the creditors time to put their foot in for the charged money. They would need to go back to court for this.

 

tell your solicitor to have a look at Land Registry guidelines if he/she isn't aware of the above (which a good solicitor will be anyway). The law is to inform them only by a written notice, not to send them money from the sale. Because of the house being in joint names and only one person has the debt, the charge is a restriction only.

 

i.e. The restriction which can be entered on the register where a charging order is made against one of joint proprietors is in the following form :-

 

No disposition of the registered estate 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.…).

Edited May 12, 2010 by tifo

[starz 61]

if your house is jointly owned then the charging orders make no difference to the sale as your solicitor does NOT need to send any money to the charge holders but only INFORM them of the sale of the house. A good solicitor will do this just before the sale is due to complete so as not to allow the creditors time to put their foot in for the charged money. They would need to go back to court for this.

 

tell your solicitor to have a look at Land Registry guidelines if he/she isn't aware of the above (which a good solicitor will be anyway). The law is to inform them only by a written notice, not to send them money from the sale. Because of the house being in joint names and only one person has the debt, the charge is a restriction only.

 

i.e. The restriction which can be entered on the register where a charging order is made against one of joint proprietors is in the following form :-

 

No disposition of the registered estate 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.…).

 

Oh thank you Tifo that is interesting I will make my solicitor aware of this, his solicitor asked if we can pay these outstanding loans b4 the house sells I have 3 children and am on benefits where does he think I got that kind of money and he took out the loans only signed for by him and when he could not pay we went to court and they put charging orders on even tho I protested and said it is not fair too me because even tho the house is in joint names I did not sign for these loans.

[tifo]

because of being jointly owned, that's why it's a restriction only and not a proper charge and you only have to inform the creditor of the sale and not send them money.

 

basically a charge on a jointly owned property where only one of the owners is the debtor is useless for the creditor unless they go for a sale of the house OR come into the loop when the house is being sold. Once sold, the new owners get a clean slate as it's not their debts.

 

hope this helps.

[starz 61]

because of being jointly owned, that's why it's a restriction only and not a proper charge and you only have to inform the creditor of the sale and not send them money.

 

basically a charge on a jointly owned property where only one of the owners is the debtor is useless for the creditor unless they go for a sale of the house OR come into the loop when the house is being sold. Once sold, the new owners get a clean slate as it's not their debts.

 

hope this helps.

 

Oh yes it does help an awful lot thank you as my ex is being so difficult and picky about things my solicitor asked for two third one third in my favour cos I have the children but he said no he wants 60 40 in my favour? and he wants the house sold mortgage repaid and the 2 charges cleared before the money is split. So you saying in effect sell the house pay the remainder of the mortgage split proceeds then let the people know who have the charges so he will have to pay as they are is debts not mine am I correct?

[tifo]

So you saying in effect sell the house pay the remainder of the mortgage split proceeds then let the people know who have the charges so he will have to pay as they are is debts not mine am I correct?

 

You have to tell the creditors while you are selling the house but your solicitor should send the written notice so that they have no time to put their claim in. Once the house is sold, it's too late for them.

 

Even with a 60/40 split, the debts would be cleared from your partner's share and not yours as they're only his debts.

 

Either way, it makes no difference to you. None of the money is paid from your share.

 

The restriction would state his name and that the charge is on his part of the equity only, not from your part. You can easily check this as your solicitors will have the title deed.

 

You could stop stressing about it and simply let the creditors take the money from his share. It's not the way you're thinking, i.e. the creditors are paid from the money left over and then it's split. It's first split and then the creditors can only be paid from his share of the money, not yours (as they're not your debts).

[tifo]

Also, don't forget to claim any arrears charges etc from the outstanding balance as this will give you more money left over.

[starz 61]

Also, don't forget to claim any arrears charges etc from the outstanding balance as this will give you more money left over.

 

You are so brilliant thanks very much for your help I am so relieved this news is wonderful

Cant wait to tell my children yay more money for them.

Thanks again. I will let you know what happened.

[tifo]

you're welcome