charging order and maturing mortgage

[notknowinganything]

good evening. I do hope i am doing this correctly its my first visit !!!.

 

I havent had to chance to consult the CAB etc as yet, but suffering from so much aniexty about this issue.

 

My father died from a teminal illness back in february, We were all under the impression that he would have his fiances in order, but he didnt leave anything, probably knowning that his illness was terminal he didnt bother paying the mortage, debts etc. Neither did he advise us that he has charging orders on the home since 2000.

 

My mother decided to put everything in the drawer (land registry) when putting house in her name solely. she didnt look at them until now so therefore it has prompted me to write !.

 

The mortgage due to mature in october 2012, so will have put the house on the market as they will not roll over the mortgage and she is to old to remortgage.

 

1. Do charging orders go if over six years old.

 

2. Is my mother responsible for the charge now.

 

3. How does she appeal to the court, as these were not her debts and had no knowledge of them

 

4. If she is now responsible does she have to pay the creditor/creditors on completion of the sale or sometime later. The house is not worth what is was, will not be alot left if she has this to deal with this

 

5. Will this be a problem when potential buyers do searches.

 

6. My father has left £82.000 on the mortgage which cannot be paid, will barclays start court proceeding. We have consulted them and they are based in leiceister and they dont wish to help us in any way

 

7. Could the court grant her occupancy of he current property indefinately. She is now 70, has a disability, so have I, and when I am ill she looks after my daughter. the interest is being paid

 

Please help I am so scared of this outcome, its been a horrid 2 years and it doesnt appear to be getting better, care of my deceased father......kind regards

[gemspan]

Hello there. Sorry nobody has seen your post but I'm sure somebody will be along soon to answer your questions in more detail.

 

Can you tell me if the mortgage is interest only? If so, is there nothing in place to fund the mortgage when it matures in October 2012? What are the debts for that have the Charging Orders over your mother's home?

[notknowinganything]

morning. no he didnt have any funds to cover the mortgage, yes it is interest only.

 

1. the debt secured is for a wet room he had fitted back in 2004 £8,000 owing

[Lea_HTH]

1. No.

 

2. Depends on whether the house is in joint names or not. Was it? Presumably yes if the charging order in your father's name appears on the register.

 

3. She can't appeal to the court - what will happen is that if the property is in joint names, or even if it's not, if she has established a beneficiary interest, then what the courts may do is order a sale, for the debts to be discharged, and her share of any equity is hers and won't be taken for his debts.

 

4. All debts secured on the property would be paid once monies for sale were transferred and before she was given her share - albeit, as per no.3, her share would not be used to pay the debts.

 

5. No. All debts will clear once the property is sold, so long as there is sufficient monies to settle them - the solicitors involved will ensure the property is conveyed without charges, so the buyer won't be affected.

 

6. They may well start proceedings. It is unusual for them not to want to discuss the matter with you. What precisely have they said?

 

7. No. The court has no power to do this. The property will have to be sold to discharge the debts unless your mother can prove some alternative - not going into this here as there are multiple possibilities and your mother will need to see a solicitor in order to protect her interests, irrespective of which alternative applies.

 

Don't let this mar your memories of your father - it was almost certainly not his intention to leave his family in a mess. It can be resolved, but your mother will, as aforementioned, require the assistance of a solicitor to see what defence can be put forward. As she is elderly, and her home is at stake, she may be entitled to legal aid.