Charging orders

[Paddy W]

I have 5 charging orders on my property & am about to sell it.

I cannot afford to clear the total amount of the charging orders out of my equity as I will be unable to purchase another property, effectively negative equity.

 

I have offered one third of the total to have the orders removed. I also said I would enter an agreement to pay a regular monthly amount to chip away at the balances. I have also said I would be happy for a charge to be put on my new property or or have the creditors put in my will as a priority beneficiary.

 

I have a solicitor acting in respect of two of the orders but have been dealing directly with the other three. Two have come back stating they are not prepared to move & I have to send more information to the other one.

 

I am desperate. 

Any & all suggestions welcome.

Thank you.

 

[honeybee13]

Hello and welcome to CAG.

 

Site team member @dx100uk and a couple of others are good at charging orders. Can you tell us who put the charge on your house please?

 

Best, HB

[dx100uk]

is your home jointly owned and are these debts with the CO's solely yours and only in your name or joint?

 

dx

 

[Paddy W]

I have five orders on the property, four of debts were initially from MBNA, but they have sold them on. They are being handled by three different solicitors.

 

One of the orders is with MFS Portfolio & I will be able find out who owns the others through the solicitors.

 

The final one is the Halifax which is being handled by a debt recovery company.

 

The property is in joint names but the orders are solely in my name.

Thank you

[dx100uk]

Then go sack that solicitor as he is talking absolute rubbish that you need to settle them before you sell.

 

They are only restriction k's NOT full charging Orders

 

Dx

[dx100uk]

Lowell interim charging order from credit card debt 2009 - General Debt Issues - Consumer Action Group

[Paddy W]

The solicitors I mentioned are acting for the companies who have the orders.They are not mine. I have a solicitor writing to the solicitor's who have two of the orders but only because that was the only way they would consider any reduced settlement proposal.

 

Could you please explain Restriction K & how I could sell my property without having to settle the orders?

Thank you

 

Also could you please let me know what is a DCA?

Thank you.

[dx100uk]

already explaINED IN RED IN THE POST I LINKED YOU TOO.

YOU ARE BEING HAD BLIND YOU don't NEED TO PAY OFF any OF THEM SIMPLY sell THE HOUSE.

 

opps sorry caps

 

dx

 

[dx100uk]

a DCA is a debt collection agency, you know the ones that got the CCJ's and then rushed to court to get the CO's as you probably never bothered to defend any of the CCJ's. just rolled over.

 

 

 

 

[dx100uk]

Charging Orders

 

An unsecured creditor may apply to the Court for a charging order against a debtor’s property. Commercial lenders such as credit card companies and utility companies will often protect their interests in this way. The order will require the debtor to pay a fixed sum (though interest will accrue on that sum) and will oblige the land registry to accept an application to register the order as an equitable charge. As with a mortgage, the owner could not sell the property with the consent of the beneficiary of the charging order.

 

The order is granted in two stages. First, an interim order will be granted in order to protect the priority of the interest being claimed and then if the Court is satisfied with the creditor’s evidence a final charging order will be granted. Often only the interim order will be registered, which is sufficient.

Unlike a legal mortgage, an equitable mortgage does not entitle the beneficiary to take possession of the property and sell it, though once a charging order is obtained it might be possible to obtain a further order of the Court, called an Order for Sale. This entitles the beneficiary to sell but still does not contain any powers of overreaching.

 

Notices (Unilateral or Agreed)

 

A notice does not prevent the owner of a property from completing a sale however it does put a purchaser on notice (hence the name) that the beneficiary has an interest in the property.

There are two types of notice, unilateral and agreed. A unilateral notice should be used where the applicant cannot obtain the consent of the owner and an agreed notice should be used where the owner is prepared to consent.

 

Although much less effective at securing an interest than a mortgage or charging order, notices have the advantage of being simple to register. A solicitor is not usually required which keeps costs down. The necessary forms can be obtained free from the land registry’s website.

 

An application for an agreed notice will need to be signed by the owner of the property and although an application for a unilateral notice will not, the land registry will write to the owner informing him of the application and giving him the opportunity to object. Unless there is an objection then evidence of the interest being claimed does not need to be supplied however it is an offence to register a notice or restriction against another’s title without justification.

 

If a property which is the subject of a notice is sold the purchaser should insist that the form necessary to remove to, signed by the beneficiary, is supplied on completion. Obviously the beneficiary will only sign this if the debt is satisfied. It is often possible however to have a notice removed following a sale without the consent of the beneficiary depending on the circumstances.

 

Restrictions

 

A restriction prevents the property from being sold without the consent of the beneficiary or without some evidence that a specified action has been performed. In terms of securing a debt the restriction would require the consent of the creditor to the sale and that consent would not be granted unless the debt was repaid.

 

Unless the restriction is as a result of a Court Order or bankruptcy proceedings then the consent of the owner is needed in order to register it. A restriction alone does not prove that the interest being claimed is valid and will not provide the details of it however it will protect the priority of the interest if it is valid.

 

The effect of the restriction

 

The debtor and his joint owner’s freedom to sell the property is not affected by such a restriction. They could sell the property as if there was no charging order against the debtor. All that was required was that the new buyers or their solicitor write to the creditor informing them that they now owned the property and then confirm to the Land Registry that they had given that notice. Then the buyers could register the property with no further complications.

 

The creditor, who is sitting back, waiting to get paid, instead just receives a letter confirming that a sale has already taken place, typically a week or two after the sale so there is little they can do to get the debt paid. In theory the creditor could apply fora freezing order against the debtor to try and obtain the cash from the sale proceeds. However, most creditors will never make such an application: The cost of applying for such a freezing order would run into thousands of pounds. The debtor might have spent the cash from the sale of the property before the freezing order was obtained so there is little, if anything, for the freezing order to bite on.

 

 

@Andyorch

 

a DCA is a debt collection agency, you know the ones that got the CCJ's and then rushed to court to get the CO's as you probably never bothered to defend any of the CCJ's. just rolled over.

 

 

 

 

[dx100uk]

7 hours ago, Paddy W said:

I will be able find out who owns the others through the solicitors.

you don't need too.

 

pop onto the HM Land Registry - GOV.UK (www.gov.uk) site

get a copy of your deeds it's about £3.

 

the text of each restriction K will read something like this:

Remortgage issue with restriction k's - Mortgages and Secured Loans - Consumer Action Group

 

you will find that all these restriction k's are most probably as the result of old debt sold to DCA's

they got backdoor CCJ's? at and old address because you'd moved ? and not told you debt owners you had? and then they went for a charging order but ofcourse failed as the home is jointly owned by the debts were solely yours and they actually only got a restriction k, which in all truth, all you need to do with it is ensure the conveyancing solicitor for the people that buy the property simply writes to each telling them the home is now sold. they nor you do not need to pay anything 

 

where ever you got this idea that you must pay or negotiate settlement is wrong. simply drop all comms with all of them and don't WASTE your money,

 

if you look at your credit file if the CCJ's are not over 6yrs old they should still show. 

if you want more help and possibly over turn these judgements give us the details.