Removal of charge on property***Resolved***

[mikkorev]

Hi,

My mother in law has accepted an offer on her house and all parties are ready to exchange.

 

 

HOWEVER a charge on her property remains which was put in place in 1989 as security for £5000 due to her ex husband, a sort of loan agreement.

This has never been repaid so the charge remains and ex husband passed away last year.

This charge has now passed on to one of his sons who has signed a DS1 to have the charge removed

but has not stated that he accepts the £5000 on the form.

 

 

the conveyancing solicitor will not have the charge removed until they receive written confirmation from him to this effect

as it is a legal undertaking by them and should he dispute the amount they are liable.

 

 

The son is incredibly difficult to get hold of, has no UK bank account, lives in Spain address unknown. So, gridlock.

 

Does anyone have any suggestions?

 

 

Its very serious now as everyone awaits his signature in order to continue with the sale.

 

Many thanks.

[dx100uk]

if the house was in joint names, should it not simply be a restriction, category K?

 

 

dx

[dx100uk]

http://www.consumeractiongroup.co.uk/forum/showthread.php?371093-House-sale-in-progress-help-needed-with-restrictions-on-land-registry-title-and-creditors

 

 

might help

[mikkorev]

if the house was in joint names, should it not simply be a restriction, category K?

 

 

dx

 

It was put there when they divorced as there weren't sufficient funds to 'pay off' his share in full. The house moved to her name with this charge attached (and a mortgage!)

[ThedaBara]

It was put there when they divorced as there weren't sufficient funds to 'pay off' his share in full. The house moved to her name with this charge attached (and a mortgage!)

 

If it's a restriction rather than a charge, then there is no obligation to pay prior to the sale... a good solicitor would know this... TB

[dx100uk]

this might not be the case

but I've gotta admit

I've know 3 sales now whereby the conveyancing sols have insisted the restriction was paid.

simply to charge a fee for doing it.

 

 

when challenged they scuttled away and completed the sale.

 

 

be careful..dont get fleeced.

 

 

the land reg site will tell you exactly what type it is .

 

 

dx

[ThedaBara]

Hmmm… well, solicitors don't care much one way or the other as long as they tie it all up and get paid… but they could be pursued for not acting in the best interest of their client by giving bad advice.

 

Definitely find out if it's a standard type K restriction, and if so, the creditor only needs to be informed once the sale has completed. There is an excellent thread on moneysaving expert.com forum entitled Charging Orders-The Myth, where a representative from land registry will give advice.

 

TB

[Ganymede]

This isn't a Charging Order though is it?

 

I thought it was a secured loan? Therefore the above won't be relevant.

[mikkorev]

Thank you everyone for your posts and advice, opinions, suggestions etc. Matter now resolved as signature finally given.