How does one go about putting a voluntary charge on a house

[Basil Fawlty]

How does one go about putting a voluntary charge on a house?

I owe my wife's family a substantial amount of money from a few years back, and although there is no hurry, or anything in writing for it to be paid back (I'm paying it back in installments, as and when I can), I would like a voluntary charge put on my share of the house equity in my wife's name (this has been agreed with her family) for the amount I borrowed.

The reason? If I ever pick up any charges from credit card debts, they will be behind the debt I owe my wife's family, and quite frankly I see that debt as a higher priority.

 

Basil

[harrassed senior]

Fairly sure you need a CCJ?

[Mr Worried]

WoW, Jeez. I cant offer you any advise regards the CO, however dont you feel pressurised to do this and if the family have already agreed for this then surley they believe it can be done, this seems a very personal family situation, and a way in which to rid you of the pressure that your obviously feeling. Hat of to you m8.

 

Mr W

[Mr Worried]

Fairly sure you need a CCJ?

 

 

 

Yeh I would agree, cant really see the LR agreeing to that or else their would be no weight to your admission, if you get my drift, I cant help thinking your under a lot of pressure from wifey and her family?

Mr

[newstarter]

Before a charging order can be issued there must have been a judgement in a county or high court applications are done on form N379 but as already stated ,cannot be done without a judgement.

[Basil Fawlty]

Is it true that you need a CCJ first? I thought that a charging order could be accepted voluntarily.

 

@ Mr Worried......I've not been pressurised in any way, its my idea, as I'm the only one in the family even understands these things (through reading this forum).

I feel much more comfortable with my family having first charge on my house equity rather than those CC company parasites. It also means that they cant force

a sale, as there would be nothing in it for them.

 

BF

[Basil Fawlty]

So what is the quickest, cheapest and least painful way for my wife to get a judgement on me?

Can it all be done online, or by paper, or do we physically have to go to court?

 

BF

[newstarter]

Without a judgement, no chance

[newstarter]

For what its worth i admire your commitment regarding the debt to your wife,s familly i really do,however i would think long and hard before even attemting to give away the equity in my home for fear of some event or financial crisis which may never happen.If things are ticking along nicely as they are why awaken the sleeping dog,and keep this in mind,there maybe some emergency in the future with which you and your wife may need that equity,any attempt to give a third party a percentage of that equity would in my opinion be placing legal hurdles which may be difficult to overcome.

[Basil Fawlty]

Thanks newstarter, your comments are much appreciated but the charge would be in my wife's name, the family have agreed to this, and as we are joint owners I dont see a problem, especially as that debt is a priority one for me and will be paid back in time. The advantage of making sure any possible credit card charge will be second in line with there being no possibility of there being a force of sale from them makes it more than worthwhile.

 

BF

[Mr Worried]

Hi Baz

 

Sorry M8, I admire you really however if you wish this to happen then your wife needs to sue, through the courts then you admit etc, I am sure it will get a bit sticky if the judge realizes what you's are doing. should be simple but I am sure their will be hurdles on the way.

 

Mr.

[Basil Fawlty]

Hi Baz

 

Sorry M8, I admire you really however if you wish this to happen then your wife needs to sue, through the courts then you admit etc, I am sure it will get a bit sticky if the judge realizes what you's are doing. should be simple but I am sure their will be hurdles on the way.

 

Mr.

 

Understand that Mr Worried, but as this is a genuine debt I cant see that the Judge can come to any bad conclusion. Surely my wife's family have as much right as anyone to secure the debt owing to them.

 

BF

[Mr Worried]

Hi Baz

 

I understand your thinking as I thought of that prior to responding, Maybe it will sail through and a sympathetic judge may grant ccj, lets hope he dosent get a wiff of you not wanting dca's to have a bite of the cherry, thats the grey area in this case IMO, its gonna read like this I would assume.

 

Hi your honnour I owe my wife's family money and admit yet dont wish to defend, will you grant them a ccj against me so that I can default on previous agreements then they can obtain a charging order, oh thanks sir, your so understanding??

 

Do you see where I am coming from? whilst myself and other cagers may understand your intentions it all seems a

little ' fairytale '.

 

I wish you luck on this and I will follow your thread with exitement.

 

Mr. never say never

[Basil Fawlty]

I've been mulling this over and while its certainly unpalatable to have your wife sue you, its something I'd be prepared to do, but I've had another thought, could there be a much simpler way of doing this.

Is it possible for my wife simply to secure the loan against my equity in the house, by drawing up a document by a solicitor and thereby turning it into a secure loan?

 

BF

[victoria_siempre]

Hi Basil

 

This is an interesting and creative approach; and I think it possible.

 

It wouldn't stop others from getting a CO, and might make it harder for you to defend these, and a CO does not force a sale.

 

This needs some careful thought and research; I take it that there's no rush?

 

love

 

vic

[Mr Worried]

Hi Bas

 

I have a CO on my home re ( My Debt ) however I was advised by a solicitor a few weeks ago when we had a buyer that the CO belongs to the both of us. even though I was the only one that got sued. dunno if this helps, like I said before this is tricky ground yet I'm sure its going to get interesting.' for the better '

 

Mr.

[Basil Fawlty]

No rush at all victoria. I am in dispute with a few CC companies and I feel quite confident as none have much paperwork to worry about, but you often read on here about judges siding with the companies even with reconstitued copies, so I'm taking nothing for granted and preparing for the worst that can happen.

 

If it goes their way and they start applying for charging orders, I dont see it in the least immoral that a debt I have with my wife's family is made a higher priority than the CC debts. The debt I owe my wife's family completely covers my equity in our jointly owned home, so even if they get a charging order it wouldnt be worth much as there would be no equity left for them after the debt to my wife is dealt with.

 

The only question is whether to have my wife sue me and apply for a CO, or make that debt secured in some other way, for example through a solicitor.

 

BF

[Basil Fawlty]

But the amount that can be realised by that charging order can only be your amount of equity in the home if the debt is only in your name, I believe?

 

BF

[Mr Worried]

Lets just say that you get 3 CO on the property your wife having the first interest apart from Motgage Co and secured loans. does that mean CO's 2 and 3 ' get in line '.

 

The solicitor told me that once home is sold then they divvy the money and they must advise LR that the sale is complete within 14 days, and if there is no equity then....?????

 

Mr W

 

 

 

No rush at all victoria. I am in dispute with a few CC companies and I feel quite confident as none have much paperwork to worry about, but you often read on here about judges siding with the companies even with reconstitued copies, so I'm taking nothing for granted and preparing for the worst that can happen.

 

If it goes their way and they start applying for charging orders, I dont see it in the least immoral that a debt I have with my wife's family is made a higher priority than the CC debts. The debt I owe my wife's family completely covers my equity in our jointly owned home, so even if they get a charging order it wouldnt be worth much as there would be no equity left for them after the debt to my wife is dealt with.

 

The only question is whether to have my wife sue me and apply for a CO, or make that debt secured in some other way, for example through a solicitor.

 

BF

[Basil Fawlty]

Yes, I believe they ''get in line''. First taker is the mortgage company, then the others in order. If all the equity goes to the first one, there's nothing left for the others.

Maybe someone can correct me if I'm wrong?

 

BF

[Seminole]

What you're after here is a charge and not a charging order. A CO can only be granted following a default on a CCJ. A charge however can easily arise as a result of a financial or property transaction. A mortgage is a charge and I would have thought that any property lawyer would be able to sort this out for you but there are two problems. First, you may the need the consent of your mortgage company if you have one and any charge would rank behind them in the event of default. The more serious problem is that I think a court might view the charge in favour of close family as a means of trying to isolate assets from other creditors. I'm not a lawyer but I could easily see a court unravelling such an agreement and making it pretty worthless. This is one of those occasions when you should probably get legal advice.

[Basil Fawlty]

What you're after here is a charge and not a charging order. A CO can only be granted following a default on a CCJ. A charge however can easily arise as a result of a financial or property transaction. A mortgage is a charge and I would have thought that any property lawyer would be able to sort this out for you but there are two problems. First, you may the need the consent of your mortgage company if you have one and any charge would rank behind them in the event of default. The more serious problem is that I think a court might view the charge in favour of close family as a means of trying to isolate assets from other creditors. I'm not a lawyer but I could easily see a court unravelling such an agreement and making it pretty worthless. This is one of those occasions when you should probably get legal advice.

 

 

Thanks very much Seminole, you learn something new everyday here! I always thought a charge and a charging order were the same thing! I thought it was strange that someone would have to sue me first before securing a loan against something I own, particularly if I I agree to it 100%.

Appreciate what you're saying about what a lawyer may do, but I dont see why someone I owe money to cant safeguard their money in the same way that a CC company could do.

 

Thanks

 

BF

[victoria_siempre]

Hi BF

 

I'll do some research tomorrow. But, I don't think your wife suing you will help; a third party doing so might but you would have to demonstrate that a contract existed. Not something to rush into, methinks.

 

x

 

 

v

[Basil Fawlty]

Hi BF

 

I'll do some research tomorrow. But, I don't think your wife suing you will help; a third party doing so might but you would have to demonstrate that a contract existed. Not something to rush into, methinks.

 

x

 

 

v

 

Thanks Victoria, but its a charge I'm looking at, not a charging order...I didnt realise they were different until recently, so I dont think any suing will be necessary.

 

BF