Charge on top of a Charge on property

[teaboy2]

Right, as you all probably know this area of law is not my area.

Anyway, we all know a creditor can get a charge on your property for debts.

However, a friend of my came to me yesterday and whilst we were discussing his debts, hes been to CAB and they mentioned it to him. So he asked me if a creditor can get a charge on top off a charge on property he has on his ex wifes property?

Now i have never heard of anyone getting a charge on top off a charge on a property.

Back ground story below:

Basically friend got divorced from wife, as a result of the divorce he has a charge on ex-wifes property that his wife owns, for i think 30%. She can not the sell property until there daughter reaches 18 or, if she stays in education, till she finishes full time education.

Now my friend is currently struggling with debts, and can not afford to keep up repayments. Hes offered repayment plans to creditors based on what he can afford to pay each month, and awaiting there response. CAB said, that the creditors could get a charge on top of the charge that he has on his ex-wifes wife property. What i and my friend what to know, is can they really get and place a charge on top of another charge that is on a property.

To clarify, they will not be getting a separate charge on the same property, as my friend doesn't own the property, he only has a charge on it for a percentage of value when sold, or something like that. So the CAB are saying they can get a charge on his charge.

Thanks in advance guys.

[calamity jane]

Re: Charge on top of a Charge on property

Found this which states that a Charging Order can be also made against a debtors interest in land or other assets.


Finally, a court Charging Order will place a legal charge on the judgment debtor’s property for monies owed to the creditor. The purpose of the Charging Order is to secure the debt. The majority of charging orders are made against the debtor’s own home but a charging order could also be made against the debtor’s interest in land (freehold or leasehold) or stocks and shares. Charging orders can only be granted in respect of judgment debts, where a court has already held that a debt is legally owed and payment is due. The application for a Charging Order has two stages, resulting in an interim order and then a final order. An interim Charging Order is usually granted by the court to stop the debtor from selling a property before a final order can be considered. If a court grants a final Charging Order, and the debtor subsequently sells his/her property, the full amount of the charge has to be paid before any of the proceeds of the sale can pass to the judgment debtor. If there are a number of charges on the property they will take priority according to the date that the charges were registered with the Land Registry.


Full details can be found on link below.

http://www.parliament.uk/briefing-papers/SN06614.pdf


CJ

[teaboy2]

Re: Charge on top of a Charge on property

Found this which states that a Charging Order can be also made against a debtors interest in land or other assets.


Finally, a court Charging Order will place a legal charge on the judgment debtor’s property for monies owed to the creditor. The purpose of the Charging Order is to secure the debt. The majority of charging orders are made against the debtor’s own home but a charging order could also be made against the debtor’s interest in land (freehold or leasehold) or stocks and shares. Charging orders can only be granted in respect of judgment debts, where a court has already held that a debt is legally owed and payment is due. The application for a Charging Order has two stages, resulting in an interim order and then a final order. An interim Charging Order is usually granted by the court to stop the debtor from selling a property before a final order can be considered. If a court grants a final Charging Order, and the debtor subsequently sells his/her property, the full amount of the charge has to be paid before any of the proceeds of the sale can pass to the judgment debtor. If there are a number of charges on the property they will take priority according to the date that the charges were registered with the Land Registry.


Full details can be found on link below.

http://www.parliament.uk/briefing-papers/SN06614.pdf


CJ

Many thanks CJ

I shall pass the information and links you provided on to him.

[Guest]

Re: Charge on top of a Charge on property

Yes it is called a sub charge, it is quote common in lending, but I should think the same Principe applies with an enforced charge by a creditor.

http://www.practicalconveyancing.co....t/view/7808/0/