Paying off charging order

[Slinky46]

Hi all..

Just a quicky..

I have a charging order on a join property (sole debt, don't live at property, ex does).

The debt is handled by 1st Credit and is around £12k.

Order has been in place since Nov 2004 and I haven't paid anything since around 2003.

My ex is going to buy me out and wants the property clear and in her sole name.

This means paying of the debt and getting the order lifted.

Any advice on how I should go about this? Can I 'make them an offer'?

Many thanks in advance, you always come up trumps.

[Sapphire]

Re: Paying off charging order

Hiya Slinky,

I would personally write to them and say that you are in a position to pay off the debt and ask them for a full and final settlement figure. Actually I think there's a letter in the library that will fit, here try this Legal Beagles you can adapt it to suit your own situation, also add on that the offer is conditional on them removing the charging order of course and that you won't pay until you have it in writing that they will remove it.

Good luck with it and I look forward to hearing how you get on.

[Slinky46]

Re: Paying off charging order

Hey Sapphire, Thanks for the quick reply.

I'll have a look at the draft you suggest.

Should I ask for a settlement figure then go back with a counter offer or make an offer in my first contact?

Thanks again, Slinky.
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Sorry, should have read the template before replying.

[Paule]

Re: Paying off charging order

I would have thought they would want the amount from your profit from the sale.
If you mention that the house is being sold, I would guess they wont accept anything less.

regarding

Order has been in place since Nov 2004 and I haven't paid anything since around 2003

Do you mean that the debt hasnt been paid at all, or that your ex has been paying it?

[Slinky46]

Re: Paying off charging order

Hi PKea,

The house isn't being sold. The property does'nt have any mortgage or secued loan on it either, only the charging order for an old credit card debt.

My ex is getting married and is staying in the house, she is simply buying me out and wants it in her name.

There hasn't been a single penny paid by anyone since around 2003.

Hope this info helps, Thanks, Slinky.

[WendyB]

Re: Paying off charging order

Is the ex going to continue living in the property, or sell it? I am reading it that she is going to buy you out and continue to live in it? If she is buying you out, then I would presume that you will have enough money to pay off the debt? They will not remove the charging order until it is paid off, so if they know that, in effect, you are selling your half of the property, then I presume they will want the whole amount out of your share of the sale. You could try making them an offer but I doubt they would accept, if they know you are going to come out of the sale with more than what you owe them.
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Crossed in the post with yours!

Have you paid the old credit card debt at all? Best thing to do would be to pay off the debt first, then get charging order lifted, then do the sale to ex. Is she prepared to advance you the money to pay off the debt, then take it off the sale amount?

[Paule]

Re: Paying off charging order

Someone correct me if I am wrong

If there is a charging order on the house, it will be registered at the land registry as an interest on the property.
At present the house is registered to Mr & Mrs X, I presume
When she buys you out and it gets changed to Mrs X, the other party will be notified as they have an interest on the property.
Then they will want proceeds from the sale.

I am not up on charging orders, but i presume the basis of them is to make sure they get their money in the event of a change of ownership of the property.
If the ownership gets changed they will want to knwo the circumstances I presume, and will prob be able to take you back to court if you dont pay up.

If someone can clarify though, that would be great

PKea

[WendyB]

Re: Paying off charging order

That sounds exactly right to me, PK. And i don't think as sale can actually go through and complete whilst there is a charging order - the money for the charging order would be deducted at source, so to speak, I think.

Thats why I said the only way to get the charging order removed first would be to repay the debt, then lift the order once the debt is paid. Then it would be gone before the sale took place.

[Slinky46]

Re: Paying off charging order

Just to clarify..

The credit card debt which resulted in the charging order has not been paid nor have any payments been made in around 6yrs. The original MBNA debt was passed to 1st credit in 2004 and the final charging order made in Nov 2004.

My ex is 'buying' my half of the property which has no other debt secured on it.

I'm assuming that when she tries to raise the cash (secured) 1st credit will be notified?

If this is not the case will they only be notified when she tries to remove our joint ownership and put it in her name as sole owner?

[Paule]

Re: Paying off charging order

I would agree to what you said Wendy.

Get a settlement figure for the debt, then get that payment from your Ex and pay it off, then once the charging order is clear, and ttransfer takes place, then she can give you the remainder of the money.
Plus if she pays the debt direct and NOT through you, then she will have the knowledge that it has been settled.

[Paule]

Re: Paying off charging order

It may be worthwhile for her to have a word with her solicitor regarding the in and outs of this, if she is going for a mortgage on the property. As I dont know the implications that may be involved in raising monies on a property with a charging order on it.

[WendyB]

Re: Paying off charging order

Just as an extra, were there any charges on the credit card debt that you could claim back? that would reduce the balance owing. Don't want to complicate matters, just a thought.

[Paule]

Re: Paying off charging order

The credit card debt which resulted in the charging order has not been paid nor have any payments been made in around 6yrs. The original MBNA debt was passed to 1st credit in 2004 and the final charging order made in Nov 2004.

In my opinion, If the property is clear of a mortgage, they are probably just able to sit and wait for a sale, whenever it comes, as they don't have the risk of it being repossessed by the mortgagee.

But I would be wary that when it does need to be paid that they then come back with interest on all the missed payments etc, which shoots the figure up a lot.

You need all your info sorted before you make contact with them.

The 6yrs is irelevant, as they have a charging order in place. Correct me if I am wrong, and in any case the charging order was put in place 2004, so thats only just 5yrs (if done on Jan 04) or less

[Slinky46]

Re: Paying off charging order

Thanks for all the good info and advice..

Do you think it would be an idea to try and raise some cash unsecured to make a reduced offer? Then the order would be satisfied before any application for a mortgage/secured loan was made.

How much should I offer working on a £12k debt?

Thanks, Slinky.

[Paule]

Re: Paying off charging order

I would wait for others to input their ideas, but based on the fact that they are the only people with an interest, ie no mortgage, I would tend to agree that they may not take a reduced offer.
And if you do make an offer, I would guess that they would know it is what the majority of people would do before a property sale. So this may alert them to the fact that a sale is on the cards, and give them greater reasons to not accept an offer. But I dont know how they work.

I wouldnt know which way to jump, if I'm honest.

PKea