Equity charge on property

[Hallmark]

Can anyone give me advise on this please???

 

I purchased a house back in 2007 with now my ex partner (never married).

 

Along with the northern rock mortgage we also got a loan for home improvements etc for over £20k.

 

After a year we then split up and decided that we would both pay off the loan half each.

 

I paid NR over £13k and received a letter to say I had been removed from the loan.

 

last year I finally got my ex to sign the house over to me and I went to proceed with the change of parties with NR which was all going very well until the last hurdle.

 

After everything had been signed at the solicitors and all the documents had been sent in to NR to carry out the change of parties

I received a letter from NR stating that they are withdrawing the change of party offer due to a equity charge being put on the house

and until this was paid the change could not go ahead.

 

Unknown to me my ex had not paid her half of the loan off or any monthly payments so NR went through the courts and their is now a charge on the house.

 

I have been paying the mortgage for 5 years and to date my ex is still joint owner of the house due to this charge.

 

My ex does not have the money to pay off this charge and refuses to pay anyway.

NR won't give me any details regarding the loan as its not in my name anymore.

 

I'm not perusing this issue with my solicitor as he is not a specialist in property charges and each letter would be costing me more money.

 

Does anyone know where i stand or have any advise on where I stand with this charge and If I could get NR to remove it so I could continue with the change of parties?

 

Any advise would be appreciated.

 

Many thanks

[Hallmark]

Can anyone help.

 

Does anyone know if the charge below from my land registry search is classed as a restriction?

 

It's an outstanding debt from my ex and we are joint names on the property.

 

6 (21.04.2008) Equitable charge created by an Interim charging order of

the South Shields County Court dated 3 December 2007 in favour of

Northern Rock plc.

NOTE: Copy filed.

 

End of register

[ims21]

Two threads merged...please keep to one thread for this issue.

[eggboxy1]

It's not a Restriction as it states that an "Equitable charge" has been created.

 

This is only allowable if the debt is in joint names, too. If it isn't then there has been an error and you need to inform the Land Registry of such.

[Hallmark]

Originally the loan was I joint names but when we split up I payed half of the loan off and I was removed from the loan and was not accountable anymore.

I have that in writing from northern rock.

[eggboxy1]

If that is the case then you should inform the Land Registry immediately as your Ex's debt affects your share of the equity upon sale if the CO is left registered at the LR on an equitable basis.

[Hallmark]

Yes this is the case.

The story is I went through the change of parties process with NR to sign the house into solely my name this year and received the offer from NR but when things went to get finalised NR withdrew the change of party offer as they had realised they had put a charge on the house. They are now saying the charge needs to be paid before the transfer can go ahead or to even sell the property.

[ims21]

More posts moved to this thread.

 

Hallmark...please just keep to this one thread for this issue.

[Hallmark]

Egg box

 

I have just spoke to the land registry and they said that the equity charge will stand and that the charge will apply to my ex's half of equity if the house was sold.

 

This means I won't be able to complete the change of parties.

 

Do you think I could maybe apply to get the equity charge removed through NR if at all possible?

[eggboxy1]

Hallmark

 

The Land Registry's own rules amended in 2003 state that an "Equitable" charge is not allowed to be made on jointly owned property if the Charging Order is only against one of the joint owners. The person with the benefit of the CO can only register what is called a Restriction to notify that a CO on the "Beneficial Interest" (equity) of one of the owners has been made. So you need to ask the LR why they are allowing something that is against their own rules?

[Hallmark]

Thanks I will phone them again tomorrow and keep you posted.

[Hallmark]

Eggbox

 

Do you know if the quote who have said is written on a document anywhere so that I can reference it?

[eggboxy1]

Hallmark

 

The Land Registry shouldn't need this explaining but its notified HERE at Section 2 in their Practice Guides