What happens if a Charging Order is granted ?

[Toffee mints]

On a property ?

 

What happens if you don't sell the house and eventually pay off the mortgage ??

 

Thanks in advance

[Toffee mints]

Does anyone know ?

 

Is it added to your mortgage or if the mortgage is paid off does it become a sole debt ?

[spitfire650]

Your interest is "charged" - basically that is your equity after deducting any outstanding mortgages. The original lenders are still first in line.

 

The charge is also registered against the title at the Land Registry.

 

The Judgement Creditor can then apply for an Order for Sale, few actually do. Most just wait until the property is sold at some point in the future, when they will receive payment from the sale proceeds after the existing lenders and before yourself.

[Toffee mints]

But what if the property isn't sold and the mortgage paid off eventually ?

[spitfire650]

The creditor with the charging order will become first charge holder.

[Toffee mints]

Sorry for being stupid but what does that mean ?

 

If property is sold after the mortgage is paid off then the full debt on charging order would still be settled ?

[lickthewallfatboy]

in NI I've been told that the charge drops off after 12 years if the house hasn't been sold

[lilly white]

are you sole owner

[Toffee mints]

Joint owner of mortgage. Other half has a credit card debt that has a hearing next month that is going to get a charging order put on for £3000.

[hammyhound]

Once you pay off the mortgage the charging order then becomes the sole debt and will remain there until either you sell your house in which case the credit card company will receives payment from the proceeds or you pay the credit card company the debt outstanding and they will then remove the charge.

[hammyhound]

Toffee,

 

arent you objecting to the charging order.

 

HH

[Toffee mints]

On what grounds could I object to it ?

[lilly white]

Restriction

 

 

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.…).

You are therefore correct in saying that when the Land Registry receives an application to register, for example a transfer, we will not ask to see the consent of the person who has the benefit of the charging order. We will only want a certificate from the applicant for registration or his conveyancer that the person who has the benefit of the charging order has been given written notice of the transfer.

 

If both joint owners sell the land to a third party the restriction will be cancelled when the transfer to the purchasers is registered.

 

 

 

 

Edited January 21, 2010 by lilly white

[supasnooper]

Have a look at the links below on Charging Orders and what grounds you may oppose them -

 

Insolvency Helpline

National Debtline

[supasnooper]

Also read this link - http://www.consumeractiongroup.co.uk/forum/legal-issues/203298-guide-charging-orders-orders.html

[Toffee mints]

Cheers will take a look now.

[hammyhound]

Toffee

 

can you bring us up to speed on how this claim ended up as an application for a charging order, ie claim form, judgment, or you paying instalments etc.

 

Even though the charging order will remain after your mortgage when you come to sell house the purchasers will want clear title so your solicitor will have a duty to have that charging order removed ie pay the debt outstanding.

 

HH

[hammyhound]

Lily has quite rightly pointed out the restriction but I find this confusing having been through the same route and won - people need to be aware that when they sell their properties the restriction will need to be removed and once the company gets wind that you are selling they will hunt you down for your money.

 

HH

[Toffee mints]

The debt went to a ccj I believe and amount requested per month was too high. Not really had any idea how to deal with it and have no rec'd a letter saying a charging order will be heard at Court on 22 Feb. Letter contained background bits from land registry etc.

[lilly white]

Lily has quite rightly pointed out the restriction but I find this confusing having been through the same route and won - people need to be aware that when they sell their properties the restriction will need to be removed and once the company gets wind that you are selling they will hunt you down for your money.

 

HH

 

 

hh are you well, hope all going well, i have been following

 

please read this tread.

 

Charging Order? The myth - MoneySavingExpert.com Forums

[hammyhound]

Lilly,

 

Thanks for looking in.

 

My friend who has a restriction on her property from Halifax for £24,000 has been told that when she sells, the purchaser will require clear title and that it will require consent from the Halifax for the restriction to be removed.

 

I cannot say how a restriction falls away according to that thread when the property is sold without say the Halifax getting a hold of their money.

 

HH

[lilly white]

hh

 

Of course you will need to check this out however worth a call to a solicitor

 

 

As always best regards lilly