Can an order to sell still be made by a debtor if ownershiphas changed??

[Donny462]

I had a charge registered on my land in 2024. In 2025 , I discovered I have liver failure and as I didn't wish my partner to have to sell up to pay inheritance tax when I die, I transferred the property to my Partners ownership. The person who has a charge on my property has now said that he is going to apply to the court to sell the property, is he able to do this when I no longer own the property? He will have been notified of my intention to change ownership but seemingly did nothing to stop it? Please can anyone advise?

[atticus]

What exactly does the Land Registry title document say? Obtain and download a current version - do not rely on something that is a few years old.

When you can come back with that information it will be possible to give further advice.

[Tofros]

Is your partnership a civil partnership? If not, your attempt to avoid IHT may be fruitless unless you survive more than 7 years following the gift as it will be added back to your estate for the purposes of IHT calculation. Gifts between formal spouses are exempt during life and on death. If your estate is worth more than the 325 k IHT threshold it may be worth getting proper advice. Also, if you are not formally partnered, consider doing so. The civil partnership process is quick and easy and if you opt for the simple schedule signing and no ceremony, very cheap. You may have triggered debt enforcement unnecessarily.

[Tofros]

I have assumed this is a romantic partnership rather than a business partnership.

[Donny462]

What exactly does the Land Registry title document say? Obtain and download a current version - do not rely on something that is a few years old.

When you can come back with that information it will be possible to give further advice.

Hi atticus

Thank you for your reply, apologies for my delay in replying to you which has been due to my stay in hospital.

The Land Registry title document says :-

Registered Proprietor - Then says my partners name.

It then says:-

Proprietor register.
Title absolute - then says my partners name again and the value of the property.

It then says :-

Charges register
The register contains any charges and other matters that affect the land.

1. Details a mining lease between the previous owners and the Hatfield Main Colliery.

Then point 2 States:-

2. Equitable charge created by a final charging order of the High Court (Court is named), in favour of... then it states the debtor's details.

Thank you for taking the time to read this.

[Donny462]

Is your partnership a civil partnership? If not, your attempt to avoid IHT may be fruitless unless you survive more than 7 years following the gift as it will be added back to your estate for the purposes of IHT calculation. Gifts between formal spouses are exempt during life and on death. If your estate is worth more than the 325 k IHT threshold it may be worth getting proper advice. Also, if you are not formally partnered, consider doing so. The civil partnership process is quick and easy and if you opt for the simple schedule signing and no ceremony, very cheap. You may have triggered debt enforcement unnecessarily.

Hi Tofros
Thank you for your reply, apologies for my delay in responding to you which has been caused by my stay in hospital.

Yes, he is my romantic partner but it isn't official as yet. Thank you for your advice, I hadn't realised that I would have to survive my partner for 7 years for the gift not to be considered as part of my estate. We will definitely be taking our relationship down the legal , official route now.

Thank you again.

[atticus]

Is the named debtor in relation to the equitable charge different to the named registered proprietor?

The information in this thread may help you - https://legalbeagles.info/forums/for...-k-restriction

[Donny462]

Is the named debtor in relation to the equitable charge different to the named registered proprietor?

The information in this thread may help you - https://legalbeagles.info/forums/for...-k-restriction

Hi atticus

Thank you for your reply.

I'm really sorry but I have made an error, the title of my post should read :-
Can an order to sell still be made by a creditor if ownership has changed??

My last post should also read :-


Hi atticus

Thank you for your reply, apologies for my delay in replying to you which has been due to my stay in hospital.

The Land Registry title document says :-

Registered Proprietor - Then says my partners name.

It then says:-

Proprietor register.
Title absolute - then says my partners name again and the value of the property.

It then says :-

Charges register
The register contains any charges and other matters that affect the land.

1. Details a mining lease between the previous owners and the Hatfield Main Colliery.

Then point 2 States:-

2. Equitable charge created by a final charging order of the High Court (Court is named), in favour of... then it states the creditor's details.

Thank you for taking the time to read this.

atticus To answer your last question, the named creditor and the named debtor are both different to the named registered proprietor. I'm really sorry for getting debtor and creditor mixed up.

[atticus]

Thanks, I had understood your intended meaning. Do read the other thread - link in my previous post.

[Donny462]

Thank you for your reply atticus.

I read the article that you linked for me, thank you very much, but unfortunately I couldn't make head nor tail of it, I'm either totally stupid or the stress is playing with my brain !Therefore,, Could you please put it into basic English for me? Is the creditor able to force my partner to sell the property even though the outstanding debt isn't his? The creditor has demanded that I reply to his letter this week, which threatens to apply for an order to sell the property . He also suggests mediation, though he states I have not to take this as that he will accept less money as a settlement and to be honest I don't have any money to pay for mediation anyway.. Can you please advise how I should reply to his demands?

Many thanks for any help/advice that you can give me, I am very grateful.

[Tofros]

The answer is yes, they can get an order for sale against the new owner. However,citizens advice info indicates they can NOT get an order for sale if the original debt was covered by the Consumer Credit Act, or if the debt ( including court fees) is under £1,000. The citizens advice info is easy to understand, the info you need is towards the end.

citizens advice should be able to help you out in the first instance, so go and see them if you can.

[atticus]

The question here is whether this creditor in these circumstances can obtain an order for sale. Before leaping to any kind of conclusion, can you please post the full wording of any restriction entered on the title register.

At the moment, it seems that this shows an equitable charge, but we would need to see more. What was the date of (1) the transfer of ownership and (2) the 'equitable charge' entry and (c) the final charging order?

[Frank1]

In the guidance "How the court decides to grant an order for sale" under the title "Charging orders" Citizens Advice states that:

The court can order a sale if either:

the property and debt are in the debtors name only
the property has joint owners and the debt is in both names
the property is jointly owned but the debt is in one name only.
.
The form K restriction requires the buyer's or transferee's conveyancer to notify the debtor about the proposed sale/transfer of the property. Failure to do this may not prevent the sale/transfer going ahead

If this happens and ownership is transferred the debtor looses his security on the debt. He may decide to pursue the debtor again or sue his conveyancer for negligence

[Frank1]

Last para first line meant "creditor" not "debtor".

[atticus]

As Frank rightly says, we need to consider whether property and debt are in the same name.