Re: Mortgage & 2nd charges on property

[Bazza]

I hope someone with expertise can help regarding a couple of issues in respect of two secured loans on my property and a copy of my Legal / Charge Register in which I have just obtained from Land Registry.

There are 3 charges on the property - 1 x original mortgage lender, 2 x secured loans

2nd secured loan company previously stated that they follow original mortgage lender and so see no reason why they should have notified original mortgage lender. Therefore registered their charge directly to LR.

Register extract clearly states that they are actually the 3rd charge on property ?

Now under Section b: Proprietorship Register / Title absolute, the 2nd secured loan company (3rd charge) have entered a restriction dated when the loan was taken out but there is no other entry for the 2nd charge ?

Under Section c: Charges register all seems to be in order as per the Register extract, with the 2nd loan entity as the 3rd charge on property ?

Apologies for any confusion but I would appreciate some clarity regarding the above mentioned and if all seems correct.

Thank-you

[Openlaw15]

Re: Mortgage & 2nd charges on property

I hope someone with expertise can help regarding a couple of issues in respect of two secured loans on my property and a copy of my Legal / Charge Register in which I have just obtained from Land Registry.

There are 3 charges on the property - 1 x original mortgage lender, 2 x secured loans

2nd secured loan company previously stated that they follow original mortgage lender and so see no reason why they should have notified original mortgage lender. Therefore registered their charge directly to LR.

Register extract clearly states that they are actually the 3rd charge on property ?

Now under Section b: Proprietorship Register / Title absolute, the 2nd secured loan company (3rd charge) have entered a restriction dated when the loan was taken out but there is no other entry for the 2nd charge ?

Under Section c: Charges register all seems to be in order as per the Register extract, with the 2nd loan entity as the 3rd charge on property ?

Apologies for any confusion but I would appreciate some clarity regarding the above mentioned and if all seems correct.

Thank-you

Hello Bazza

It would be easier if you just attached the property register's details or copy pasted its version here. The restriction under PR indicates that the property is no longer a joint tenancy (JT). It means that any Wills you make, from the point of registering the charge, now does not go to the other JT (as it would have done under a JT), but instead to whomever you have as your beneficiary/ies (if you have a Will).

[Bazza]

Re: Mortgage & 2nd charges on property

Hello Bazza

It would be easier if you just attached the property register's details or copy pasted its version here. The restriction under PR indicates that the property is no longer a joint tenancy (JT). It means that any Wills you make, from the point of registering the charge, now does not go to the other JT (as it would have done under a JT), but instead to whomever you have as your beneficiary/ies (if you have a Will).

Thanks openlaw and I will post up details in a minute.

Sorry to sound dumb but I am slightly confused as to why the third charge done this and not the second. I have a joint mortgage with my OH.

I just need a bit of educating in laymen's terms as I am concerned as to why this has been done.

Thanks

[Bazza]

Re: Mortgage & 2nd charges on property

And here's edited details.

Thanks for any advice / comments.

[Openlaw15]

Re: Mortgage & 2nd charges on property

Thanks openlaw and I will post up details in a minute.

Sorry to sound dumb but I am slightly confused as to why the third charge done this and not the second. I have a joint mortgage with my OH.

I just need a bit of educating in laymen's terms as I am concerned as to why this has been done.

Thanks

There are various types of charges and the main one will be by deed (creates a legal right) for say a mortgage through a bank, which is known as the legal mortgage. It is usually the first mortgagee (ie bank) who has legal rights over the property, it would seem normal practice for the bank mortgagee to permit other companies' 2nd and 3rd charges. Let's say the first bank offers a 95% mortgage but over the years the property increases in value (ie equity), the bank is secure (secure creditor) and other banks etc may have land charges for any subsequent loans. There can still be 2nd and 3rd legal mortgagees, as the reason for this is that only one can hold the deeds. Other mortgages are not legal type mortgages (ie not by deed or other legal mortgage), known as equitable mortgages which require court order for sale as they cannot take possession with out one. A legal mortgage (ie bank) can take possession based on non payment of mortgage, but are likely to ask for court order of possession. Ok the restriction type where you put the '*' is a different type of restriction to the one I was thinking of. This type of restriction is normally independent of or in addition to a charge. A restriction could be just as effective as charge in that it restricts the owner from selling the property, but it is also possible to challenge a restriction in some circumstances; which in essence serves to protect the loaner's interest on the property. Can you please show me the charges register also.

[Bazza]

Re: Mortgage & 2nd charges on property

There are various types of charges and the main one will be by deed (creates a legal right) for say a mortgage through a bank, which is known as the legal mortgage. It is usually the first mortgagee (ie bank) who has legal rights over the property, it would seem normal practice for the bank mortgagee to permit other companies' 2nd and 3rd charges. Let's say the first bank offers a 95% mortgage but over the years the property increases in value (ie equity), the bank is secure (secure creditor) and other banks etc may have land charges for any subsequent loans. There can still be 2nd and 3rd legal mortgagees, as the reason for this is that only one can hold the deeds. Other mortgages are not legal type mortgages (ie not by deed or other legal mortgage), known as equitable mortgages which require court order for sale as they cannot take possession with out one. A legal mortgage (ie bank) can take possession based on non payment of mortgage, but are likely to ask for court order of possession. Ok the restriction type where you put the '*' is a different type of restriction to the one I was thinking of. This type of restriction is normally independent of or in addition to a charge. A restriction could be just as effective as charge in that it restricts the owner from selling the property, but it is also possible to challenge a restriction in some circumstances; which in essence serves to protect the loaner's interest on the property. Can you please show me the charges register also.

Thanks Openlaw, much appreciated.

I have attached charges register page as requested.

Sorry for all questions but I do not trust Progressive / Welcome one bit so I am trying to ensure that all is present and correct.

Hence why I asked about 1st loan (2nd mortgage) not appearing on restriction part.

Thanks

[Openlaw15]

Re: Mortgage & 2nd charges on property

Thanks Openlaw, much appreciated.

I have attached charges register page as requested.

Sorry for all questions but I do not trust Progressive / Welcome one bit so I am trying to ensure that all is present and correct.

Hence why I asked about 1st loan (2nd mortgage) not appearing on restriction part.

Thanks

No, it's normal to ask questions, you're bound to be curious, It would appear that Progressive have a Charge from 2003 based on part C of the Charges' register.

[Bazza]

Re: Mortgage & 2nd charges on property

No, it's normal to ask questions, you're bound to be curious, It would appear that Progressive have a Charge from 2003 based on part C of the Charges' register.

Thank-you again.

Sorry for sounding stupid but does that mean they have put a charging order on the property ? Are they allowed to enter a restriction on the register and not the 1st loan (2nd mortgage) ?

I thought that a restriction on the property was in regards to a CCJ.

Is this normal regarding Secured Loans ? So in layman's terms what does this mean if our property is sold ?

Thanks again for any further comments.

I understand that the loan has been secured against the property even though the Welcome / Progressive agreement only states a 'Personal Loan'.