House sale in progress help needed with restrictions on land registry title and creditors

[Borris the Bold]

Good morning,

 

I would really appreciate some assistance if possible. I am currently in the process of selling a property. The land registry title contains three restrictions, two of which are in my name and one in my ex-partners name, with the property being in joint names. My conveyancer has written to all three creditors listed on the title requesting settlement figures. We are currently waiting for their responses. However, I have since found out that one particular creditor, namely, ‘Shoosmiths’ have since passed on my debt/details to ‘Eversheds’ for some reason. I only found this out yesterday after contacting Shoosmiths asking why things were taking so long. I passed this information onto my conveyancer, who is obviously waiting for an official response of sorts.

 

Can anybody please tell me how this will impact on the sale proceedings? Will Eversheds need to apply to have their name put on the title before any further progress can be made or can they simply ride on the back of Shoosmiths?

 

Many thanks,

 

Borris

[Borris the Bold]

Hi all,

 

When a creditor sells or is instructed to pass on a CO (restriction) debt, does the new creditor have to apply to the court to have the title amended? I've read conflicting opinions on this subject.

 

I have a restriction on the title that mentions: Egg Banking plc c/o Shoosmiths. Shoosmiths informed me the other day that they passed the account to Barclaycard. I suspect that this was due to the fact that Barclaycard now own Egg or am I mistaken?

 

How should i go about tackling this as I'm in the middle of selling my house. My conveyancer informed Shoosmiths for a settlement figure only to be informed that they were no longer responsible for the debt. The conveyancer has now had to make contact with Barclaycard for the final settlement figure, which could take forever if they must first register themselves on the title.

 

I'm really worried because I could end up losing my buyer. My conveyancer is just doing his job, i.e requesting settlement figures and that's it. I'm not sure they want to get involved with any other legal aspects of restrictions.

 

Regards,

 

Borris

[Andyorch]

Please keep to one thread Borris..multiple threads on the same question is pointless just bump your original.

Yes they have to inform the court if they have been assigned and assume responsibility for the judgment debt.

 

Regards

 

Andy

[Borris the Bold]

Hi Andy,

 

Sorry about that, will do. Thanks for your answer.

[Borris the Bold]

So basically I am obliged to wait until the new details appear on the title and then commence with the sale of the property?

[Andyorch]

April 2003 and onwards

 

The Land Registration Act 2002 (LRA) and Land Registration Rules 2003 (LRR) introduced significant changes to land registration procedures. Cautions were no longer to be used.

Instead when a creditor obtained a charging order against a debtor.If the property was solely owned by the debtor, or all owners of the property were debtors, for example husband and wife owning the property jointly and being joint debtors,

then an ‘agreed notice’ was to be filed at the Land Registry by the creditor.

 

Effectively this was almost as good as having a mortgage. The debtor could not realistically sell the property without repaying the debt to the creditor.

However, if the property was jointly owned by the debtor with other none debtors, for example husband and wife owning the property and only one of them being the actual debtor,

the creditor was not entitled to enter an agreed notice.

 

Instead the creditor could only file a ‘restriction’ at the Land Registry in the following terms: “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 [creditor...]being the person with the benefit of an interim/final charging order on the beneficial interest of [name of... debtor].

 

”This restriction was, and remains, practically useless.

 

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 for a 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.

 

 

Regards

 

Andy

[Borris the Bold]

Hi Andy,

 

Thanks for that. The property is in joint names with two restrictions in my name and one in my ex-partners name; both applied after 2003. So, there are no joint debts but both owners have debts. I'm not sure if our buyers would be willing to go through with the sale knowing that there are restrictions on the property, regardless of this being a legal process. I would say that it's generally assumed that people will clear the orders as part of the sale. I could speak with my conveyancer and see what he thinks. I'm in a real pickle with this because all creditors, except Barclaycard, and their solicitors know of the sale as they must agree to an RX4. I think once Barclaycard receive this account from Shoosmiths along with a nice request for a final settlement, they will add statutory interest, although Shoosmiths at the time were not going to!

 

Regards,

 

Borris

 

P.S. We are dealing with just two restrictions, one in my name and one in my ex-partners name. The third restriction, which is in my name is under 5k. The restriction in my name was with Egg Banking plc c/o of Shoosmiths, but as of last week was passed to Barclaycard. The restriction in my ex-partners name is with Robinson Way & Co Ltd. The original creditor was Capital One banking (Europe) plc.

Edited November 11, 2012 by Borris the Bold

[Borris the Bold]

Hello CAG members,

 

Does post statutory interest on an judgment debt have to be documented somewhere? What does the judge base his decision on to grant this interest, i.e. by default through an Act, a default notice, a claim form or a dca/creditor's proof via a credit agreement, ToCs, etc.

 

This area appears to be so unclear.

 

Do people actually contest post statutory interest?

 

Regards,

 

Borris

Edited November 13, 2012 by Borris the Bold

[Andyorch]

Do you mean Contractual Interest Borris ?

[Borris the Bold]

Hi Andy,No, by all accounts this is statutory interest they're talking about. Regards,Borris

Edited November 13, 2012 by Borris the Bold
response

[Andyorch]

Stat interest is only claimed from the date it is owed up until the date of judgment at 8%.

 

"If the debt has been outstanding for some time and there was an agreed date for repayment, you can calculate the interest which was due from the date of repayment to the date of your Particulars of Claim and add this to the amount you are claiming when you first start your case.

 

However, if you are claiming under the terms of a contract or agreement which already provides for payment of interest then you will need to calculate this from the date interest is payable under the contract to the date of the Final Hearing. Follow the same method as above but substitute the Statutory Interest of 8% with the Contract Interest rate.

 

You should note that the Statutory Interest has been 8% since 1/4/93, before then the rate was 15%. If your claim predates 1/4/93 you will need to apportion the different rates of interest accordingly."

 

" You may be suing under the terms of a contract which already provides for payment of interest. This may be a different figure to the 8%. You can claim the interest rate set out in the contract. This can be claimed from the date the money was due until the date of the Final Hearing."

[Borris the Bold]

Thanks Andy,I'm going to go through all the dates now and check. I sent off a SAR and CAA request to both Robinson Way and Capital One today. By the way, I found the original claim form, could I possibly upload it for you to check?Regards,Borris

[Borris the Bold]

Thanks Andy,I'm going to go through all the dates now and check. I sent off a SAR and CAA request to both Robinson Way and Capital One today. By the way, I found the original claim form, could I possibly upload it for you to check?Regards,Borris

 

P.S. Why can't I use the editor correctly, i.e. line spaces etc.

[Andyorch]

Thanks Andy,I'm going to go through all the dates now and check. I sent off a SAR and CAA request to both Robinson Way and Capital One today. By the way, I found the original claim form, could I possibly upload it for you to check?Regards,Borris

 

By all means (remove any identifiable data first.)

 

Andy

[Borris the Bold]

By all means (remove any identifiable data first.)

 

Andy

 

Andy sorry to be an idiot, but do you happen to know why I can't select anything from the editor?

[Borris the Bold]

Andy sorry to be an idiot, but do you happen to know why I can't select anything from the editor?

[Andyorch]

Andy sorry to be an idiot, but do you happen to know why I can't select anything from the editor?

 

Not sure I understand you..do you mean Edit Post?

[Borris the Bold]

Using quick reply or reply to thread i am unable to change the font, font size, bold etc. I can't select any of the buttons!

[Andyorch]

Could be your IE browser.

[Borris the Bold]

HTML code is Off

[Borris the Bold]

Claim form

[Borris the Bold]

Final charging order

[Borris the Bold]

Letter: Capital one inform selling debt to Robinson Way & Co.

[Andyorch]

I will run through your uploads shortly Borris.Could you upload the judgment also?

[Borris the Bold]

Thanks Andy for your time.

 

I am trying to locate the judgment document, but no luck so far. Perhaps this document will be sent either by Capital One or Robinson Way in response to the SAR and CCA requests I have made to them. Do you know of any judgment document on CAG that has been uploaded in the past for scrutiny so I can see what one looks like. I'll take a look around in the meantime.

 

I can upload the Capital One default notice and one letter from 2008 stating that no payments have been made on the account since October 2004. I also have the interim charging order.

 

Kind regards,

 

Borris