natwest and charging order

[natant24]

Hi I'm hoping that some of you can give me advice. Im sorry if this is the wrong place to post this!!

I was made redundant and couldnt repay Natwest a loan and overdraft back, so they lumped it together and got a ccj against me. As I am a single mum to 2 children (aged 1 and 3) and on benefits, I am paying them £20.00 pcm. The debt is now approx £16,000.

They went back to court and got the judgment changed so the balance was due forthwith as they wanted to apply for a charging order which was granted.

Just went back to court today, the charging order was made final even though both me and my ex opposed it. Both of us sent our letters of objections to the court and the judge looked like he hadnt even read them. I told him I would probably end up with £2k at the end of the sale and he just said, well they wont get much then will they!!! Without even looking at me said it was done, stamped his paper and sent me out.

The house is currently on the market and the total equity in it is £6k, if that. And is also mortgaged in joint named and debt is totally in my name.

The land registry documents say it is a restriction.

I have been reading some of the posts on here and im more confused than ever!

If it is a restriction only, can I stick two fingers up to them when the house is sold and they get nothing?

Will the charging order (or restriction) stay on the registry once the property is sold as it will not be paid off completely?

I think I have more questions but that is all I can think of at this moment!!

Thanks for any and all advice!!

[Caspar]

Re: natwest and charging order

Acharginging order is what it says, a charge on your house. Your mortgage is the first charge on your house, meaning when you sell it your mortgage is the first thing to be paid off before you get anything. The charging order is likely to be the second charge on the house, so now after the motgage, this next charge gets paid before you get anything, then any secured loans etc... and so it goes on.

I hope that clarifies it for you.

[Judge mental]

Re: natwest and charging order

Can you post up the actual wording of the restriction on the Land registry documents?

If it is a charging restriction rather than a charging order,(and it should be as the house is in joint name but the debt in one) all it means is that they must be advised in writing by your solicitor of the sale of the house. The general idea is so the creditor can return to the court to ask for their money out of the proceeds from the house sale.

If you use a Solicitor who is familiar with the difference between charging order and restrictions (many dont) they should know they could inform Natwest 24 hours before the completion date, the creditor cannot go to court to get their hands on any of the money.

Once the house is sold, the restriction automatically ends.

Stuart

[calamity jane]

Re: natwest and charging order

Acharginging order is what it says, a charge on your house. Your mortgage is the first charge on your house, meaning when you sell it your mortgage is the first thing to be paid off before you get anything. The charging order is likely to be the second charge on the house, so now after the motgage, this next charge gets paid before you get anything, then any secured loans etc... and so it goes on.

I hope that clarifies it for you.

I thought that any existing secured loans would have priority over a charging order?

i.e. - Mortgage ,any secured loans and then charging order.


CJ

[Caspar]

Re: natwest and charging order

Sorry, it was just a brief explanation, not meant to be a pecking order. The mortgage will be first, then I imagine all other charges queue up in the order they're taken out.

[Ihaterbs]

Re: natwest and charging order

are they still applying interest?

[natant24]

Re: natwest and charging order

Ok this is what I have receieved from the Land Registry.

I have cut out the boring bits!!

"B136(CO) Notice of an application to register a restriction against the land"

"we have received an application to register a restriction in the propprietorship register of the above title"

"as a result of the application the following entry is being made: RESTRICTION: No disposition of the resgistered estate, other than a disposition by the proprietor of any registered charge registered before the entry of this restriction, is to be registered without a certificate signed by the applicant for registration or their conveyancer that written notice of the disposition was given to Natwest, being the person with the benefit of an interim charging order on the beneficial interest of (me) made by the county court on 26.05.11".

"The applicant states that the court has made a charging order against this property. Where the court has made a charging order the person with the benfit of it is entitled to protect that interest with an entry in the register of the type now applied for and set out above."

"If the court order is made against a person who owns the property with you and not personally you then the above still applies. The court oder only affects the interest in the property of that person but the applicant may still make this application."

"It is important to note that the restriction applied for will not prevent you dealing with the property as long as its terms are complied with."

Sorry its long winded but thats the gist of the letter I received before the a*s of a judge made it final yesterday!!

They shouldnt still be applying interest and nothing was mentioned about that yesterday in court but who knows. The judge was just not interested in anything I had to say and wanted me out a.s.a.p.

[Judge mental]

Re: natwest and charging order

Hi Natant24

Its a restriction . . . all that has to happen is when you sell the property, your solicitor needs to send a letter to natwest (preferably 24 hours before the sale is completed) stating that the property is to be sold and a certificate to the buyers solicitors stating that Natwest have been informed.

Once the Sale goes through, the restriction no longer exists.

Whilst this does mean that the order obtained by Natwest is not worth the paper its written on (providing the notification letter and certificate are sent) it does not mean the debt does not exist, it is likely when the sale is complete Natwest will go back to court, you should attend with a statement of income and expenditure so the Judge can decide the level of repayments, which will be based on your ability to afford.

Hope this has helped and clarified things for you..... Just make sure your solicitor is fully aware of the difference between a charging order and restriction

Stuart

[natant24]

Re: natwest and charging order

Thank you so much Stuart you have been a great help. I just need to now search the land for a solicitor who knows his, or her, stuff!!

[natant24]

Re: natwest and charging order

Anyone know of any of these wonderful solicitors?????

[Judge mental]

Re: natwest and charging order

natant24

Try solicitors local to you who claim to specialise in conveyancing, when you first meet them, advise them you have a charging restriction and ask them how they would deal with it, that way you will see if they know the difference or not.

Good luck and if you need any more help dont hesitate to come back

Stuart