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Hi,
I have a number of debts and lenders have taken the now well trodden path of securing their debts by way of charging equitable charging orders on my home.
However, one late arrival at the party, a well known debt collection company, served me with a Statutory Demand which frightened the life out of me, and persuaded me to agree to a charge on my house. This charge, upon closer examination and after I had signed it, is what they call a Legal Charge. They tell me that it effectively allows the particular company to jump in front of all of the other charge holders, giving them first call on any equity after the mortgage company! The amount involved is some £13k. I am now being forced to offer them more money to prevent them
The house is in my sole name, although purchased with my wife some 17 years ago. There is very little equity in the house at the moment, since I re-mortgaged a few times and I have another 6 years on the mortgage before it ends. My wife does not have a registered interest in the property ( I was not astute enough to register her in the first place when charges seemed likely !!)
Two issues here, in respect of which I would appreciate help, comments and suggestions :
1. Is what they say correct? Have they managed to secure 2nd place to the mortgage company by their actions
2. If they have managed to do this, could my wife secure her obvious interest in the house in a similar way? (since she is not on land registry and given the other charges which would soak up equity, I had,in my own mind, discounted the possibility that she would be able to emerge with some funds at the end of the mortgage!)
I guess that I will need to involve solicitors at some point in all this, but any guidance or comments would help me.
I have a number of debts and lenders have taken the now well trodden path of securing their debts by way of charging equitable charging orders on my home.
However, one late arrival at the party, a well known debt collection company, served me with a Statutory Demand which frightened the life out of me, and persuaded me to agree to a charge on my house. This charge, upon closer examination and after I had signed it, is what they call a Legal Charge. They tell me that it effectively allows the particular company to jump in front of all of the other charge holders, giving them first call on any equity after the mortgage company! The amount involved is some £13k. I am now being forced to offer them more money to prevent them
The house is in my sole name, although purchased with my wife some 17 years ago. There is very little equity in the house at the moment, since I re-mortgaged a few times and I have another 6 years on the mortgage before it ends. My wife does not have a registered interest in the property ( I was not astute enough to register her in the first place when charges seemed likely !!)
Two issues here, in respect of which I would appreciate help, comments and suggestions :
1. Is what they say correct? Have they managed to secure 2nd place to the mortgage company by their actions
2. If they have managed to do this, could my wife secure her obvious interest in the house in a similar way? (since she is not on land registry and given the other charges which would soak up equity, I had,in my own mind, discounted the possibility that she would be able to emerge with some funds at the end of the mortgage!)
I guess that I will need to involve solicitors at some point in all this, but any guidance or comments would help me.
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