Landlord put charge on my property

[Exeterbay]

Hi all, please don't confuse this thread with my other one concerning welcome and HPH2!

Long story short, I had a business which failed, I owed a small amount of rent but that was it, the landlord ripped me off and forced me to allow him to put a charge on my home. It was for £15k. The charge was added in 2007 and I made a monthly payment on and off until 2009. I haven't paid anything or had contact since. I have today received s letter threatening to force me to sell the house.
The mortgage is £129,000 and house is worth £135,000. There is/was a charge by welcome which has now been removed( see my other thread!)
The landlord wants £22k from me inc interest.
So my question is- can he force me to sell? There is very little equity so he won't get anything, I rent this house out as can't sell due to these charges. I have my marital home with wife and kids can they try and take this???
My other thought is is this charge binding? Is there a limitation period for charges as I have had no contact in 7 years, are they trying their luck as they found out welcome charge had gone? Do I sit still and do nothing?
A speedy response would be most appreciated!!

[Exeterbay]

Re: Landlord put charge on my property

Hi sorry just wondered if anyone had looked?

[Snoopy1948]

Re: Landlord put charge on my property

Hi Exeterbay ...

I have seen a similar scenario to this unfold, albeit with different circumstances, where the creditor applied to the court for a forced sale possession only to find that the judge denied the order on the basis that the debt did not merit the loss of the person's home. In your case, it is a second rented property that is effectively a business' albeit possibly just supporting the mortgage due.

If you statement of mortgage due and current value is accurate, then with costs, you certainly have zero or even negative equity, so a forced sale would not resolve the debt due. Failed business debts are incredibly difficult to recover but it seems like this landlord is aggressive in pursuit.

I hope that someone else on the forum can advise on what other measures this ex landlord can take to recover his money but in the meantime you should have a clear picture of the accuracy of the rent debt, what interest has been added and what payments you have made in the past, assuming you kept accurate records of those. Hoe exactly did this landlord 'rip you off'?

[Exeterbay]

Re: Landlord put charge on my property

Thanks snoopy, long story short.. Landlord claiming I left premises with his equipment amounting to 15k. I didn't absolutely not. He claims he gave me an inventory prior to my moving in - which he didn't. Therefore he can't confirm what was left. He knows this and typed a dodgy letter to me telling me to "check through inventory which I have attached" he made out this letter was typed prior to my moving in and he put the date as before Moving in... But when he typed the agreed moving in date his computer auto corrected that date to the date he typed it which happens to be the day after my solicitor mentioned the fact there was no inventory!!!
When I bought this up with my solicitor she said it wasn't enough evidence - I trusted her and went with what she said which now in heinsight I wish I hadn't.!

[Crazy council]

Re: Landlord put charge on my property

Hi

One of the problems will be the amount of time between then and now. Even challenging the original charge would be very hard, due to the time that's passed.
Can you break down what he is asking for, into rent arrear agreed, and not agreed, Items from inventory, legal costs then interest ( thats probably what the 27k is made of ? ).

You may be able to argue some of this, like interest, rent, but it maybe to late to for the inventory.

That doesn't mean the LL wont negotiate. If you want it off, why dont you offer a figure of settlement. If you ut the figures on here, you may get some sound advice. The fact that its rented means they probably will be able to force the sale at the first opportunity. The letter you have received may be the first stages of that.

[Diana M]

Re: Landlord put charge on my property

I owed a small amount of rent but that was it, the landlord ripped me off and forced me to allow him to put a charge on my home. It was for £15k. The charge was added in 2007 and I made a monthly payment on and off until 2009. I haven't paid anything or had contact since. I have today received s letter threatening to force me to sell the house

I'm assuming you mean that you agreed to a Voluntary Charge on the property albeit under pressure, and not as the result of a CCJ. Correct me if that's wrong.

Whether he has the legal right to apply for an Order for Sale may depend on the terms agreed at the time. Voluntary charges can be written in such a way that a creditor (your ex Landlord) is prevented from repossessing your house and that interest charges stop building up. Just because he says the debt has increased due to interest that doesn't necessarily mean he is lawfully entitled to it.

You say you had advice from a solicitor at the time so did they negotiate the CO terms on your behalf? If so then perhaps you should contact them for advice.

Is that letter threatening to force a sale of the property from a solicitor or from your ex Landlord?

You need to get a copy of the charge registered at the Land Registry.

Di

[Diana M]

Re: Landlord put charge on my property

long story short.. Landlord claiming I left premises with his equipment amounting to 15k.

Did your ex Landlord actually issue a claim in the county court which he then discontinued after you volunteered a charge on the house to avoid a CCJ?

Di

[Exeterbay]

Re: Landlord put charge on my property

Firstly may I thankyou both for such support!!
Crazy council- it was £15k to cover the inventory and the remaining is £7k interest(7.5% pa if I remember) can they force sale if there's no equity?

Di- yes it was voluntary under pressure! My solicitor was part time and I feel didn't give me time I needed/ I feel she bowed to their pressure. I went along with what she said as I was young and nieve. I have all paperwork now as just got it from loft!!
The letter I have received is from solicitor with heading letter before action.
I have recently had welcome finance remove their charge so they have probably seen that?
I have up to date copy of register- is there any particular wording I'm looking for?
I think landlord threatened court but I volunteered to avoid CCJ but until I look through I'm not 100%

Please keep throwing questions at me if I'm not answering correctly!!
Many thanks!

[Exeterbay]

Re: Landlord put charge on my property

I've read up on interim and full restrictions so up to speed there.
What now? Do I need to write to him saying no equity and prove it or do I let him work it out? Will he go to court to find this out? Is there anything else he can do as I don't want another CCJ or bad credit issues as I've just got rid of 6 yrs worth!!

[Exeterbay]

Re: Landlord put charge on my property

Hi all, received 2nd letter today from landlords solicitor giving me another 14 days to reply- even the the original letter was supposedly letter before action. Should I reply or wait until he goes to court (if he goes to court) and they send paperwork? He says I will be liable for costs but as there is no equity in property for sure then I can't pay it can I?!
Def no equity- house worth £135k tops and mortgage £129k

[Exeterbay]

Re: Landlord put charge on my property

Hi is anyone able to help me me with my message above? I just want to know do I reply?

[Crazy council]

Re: Landlord put charge on my property

Hi

Am perhaps not the best to help on this ( :noidea: ) but can you put a payment proposal together, so at least if/when it goes in front of a judge, you have a base to start from. Even if its a small amount monthly, whatever you can afford

As Di said, the action they can take would depend on the wording of the agreement when you put the charge on, but basic agreement would allow them to take action to start to force a sale. Really would need to see the wording on the agreement between you that you defaulted on.

[Exeterbay]

Re: Landlord put charge on my property

Hi crazy and thanks for reply! But how can they start to force sale if there's no equity? Can I be forced to pay monthly? I am adamant I don't owe him anything apart from a small amount of rent possibly - this landlord had lied from the start and now it's 10 years later I'm bigger stronger and not such a pushover I really feel I'm being done over!!!

[Exeterbay]

Re: Landlord put charge on my property

Hi - looking through paperwork it seems that when I agreed (under pressure) to a monthly payment that if I didn't keep up payments then he could apply to force sale, which he is threatening to do but as there is no equity then I can't sell correct? Is it just a waiting game then for equity to accrue? Do I need to to write to them or just wait for court to contact? Please can someone respond asap? Thanks

[Exeterbay]

Re: Landlord put charge on my property

Hi All,
Developements... there appears that my property now has more equity than first thought. approx value is £150K with mortgage of £129K
I want to sell now so after fees etc there still isnt enough equity to pay the requested £22k plus i need a couple of grand myself to pay off other bits so whats the best thing to do? if i offer a settlement figure to the landlord of say 13k do you think that would be suitable? or the big question is... can i carry on and sell the house without him knowing, at what stage would he find out its sold? does a solicitor have to inform them before the sell??