charge/restriction on property

[Thepazza]

Hi, i am looking for some advice. My parents are in the middle of selling their house to myself and my wife and when the searches ave been done it turns out there is an interim charging order from a creditor in 2007, it was for a debt outstanding to a finance company for windows they had fitted. It was originally a CCJ in both names but they are unsure if this was ever made a full charging order? Then in 2011 the same creditor placed a (form K?) restriction basically stating they need to be notified about any change of ownership. My parents solicitor is now telling them that the debt must be paid and the mortgage company will not give the mortgage on the property with this restriction/charge in place. Can you please tell me if this is the case or not? I have looked for this info online and it seems their solicitor has got it wrong?
Thanks in advance.

[Openlaw15]

Re: charge/restriction on property

Hi, i am looking for some advice. My parents are in the middle of selling their house to myself and my wife and when the searches ave been done it turns out there is an interim charging order from a creditor in 2007, it was for a debt outstanding to a finance company for windows they had fitted. It was originally a CCJ in both names but they are unsure if this was ever made a full charging order? Then in 2011 the same creditor placed a (form K?) restriction basically stating they need to be notified about any change of ownership. My parents solicitor is now telling them that the debt must be paid and the mortgage company will not give the mortgage on the property with this restriction/charge in place. Can you please tell me if this is the case or not? I have looked for this info online and it seems their solicitor has got it wrong?
Thanks in advance.

Hello, Pazaa

Sorry to say but the solicitor's advice seems to be right. On registered properties, a restriction is just as effective as a charge. A charge has to be paid off before the property can be transferred in you and your wife's name. Unless it wasn't registered property, there's not a whole lot you can do except pay it. How much is that's owed? Try to make them a fair offer if you can't pay the entire amount.

[Thepazza]

Re: charge/restriction on property

Hi, thanks for the reply, the original charge was for £6700 but now with interest and charges they have put on it the amount has gone up to £13500. The settlement figure they offered was £10300.
My only concern about them being paid is the restriction just states tgey should be notified of a change in ownership... there is no mention of them being paid any money, surely as long as they are notified on completion of the sale the land registry will allow the title deeds to be put in our name?

[Openlaw15]

Re: charge/restriction on property

Hi, thanks for the reply, the original charge was for £6700 but now with interest and charges they have put on it the amount has gone up to £13500. The settlement figure they offered was £10300.
My only concern about them being paid is the restriction just states tgey should be notified of a change in ownership... there is no mention of them being paid any money, surely as long as they are notified on completion of the sale the land registry will allow the title deeds to be put in our name?

as soon as you tried to register the property in your names, the Land Registry Service would automatically let the restriction holders know. So,, when you try is when they will want their money. 13,000 sounds expensive. What charges (money) has been added on and why, besides the 'interest' I mean.

[Thepazza]

Re: charge/restriction on property

We have no idea how its got so high. I would have assumed they were not allowed to add interest or charges after the original ccj was put in place?