Calculating interest on charging order

[Bedoope]

I have a charging order secured agaisnt an ex landlords property. This was for an amount around £10,000 with interest allowed to be added at a rate of 8% per annum. The landlord has made no payments to account and the charging order was granted almost 3 years ago. I am in process of writing a letter to the landlord and need to work out how much now will be owed. Do i add interest on annually onto interest already accured? if that makes sense. Or is the interest just on the original £10,000 debt?

[stevemLS]

Re: Calculating interest on charging order

It depends on the wording of the judgment, it is very often expressed as £x to the date of the judgment and £x.xxp at a daily rate thereafter, but is also often limited to a year.

If not, s69 County Court Act 1984 says that it is simple interest.

But there is no automatic right to interest unless you pleaded it and the court awarded it.

[Bedoope]

Re: Calculating interest on charging order

The charging order was finalized at ccj amount plus interest making a final total around £10,000 (i do not offhand precise figure) Interest was allowed to continue until debt settled and this is stated on documents. My question really is do i add interest on top of £10,00 + interest each year therefore the yearly interest amount would increase quite a lot. (seems a little unfair to debtor)

[Amethyst]

Re: Calculating interest on charging order

Simple interest 8% pa on £10k makes it £12400 (£800 a year basically)

[Bedoope]

Re: Calculating interest on charging order

i am being thick about this so i would apply £800 every year or would i use the 12400 figure to calculate interest in the second year ?

[Amethyst]

Re: Calculating interest on charging order

Sorry, I was doing 3 years for some reason.... just add £800 (8% of £10k) a year..... so one year would be £10800, two years 11, 600, three years £12,400 etc NOT £10800+8%=£11664+8%=£12597 etc.

the charging order was granted almost 3 years ago.

ahh good I wasn't going banana's, that's where I got the 3 years from.

[Bedoope]

Re: Calculating interest on charging order

haha thanks a lot so just to clarify interest is only added onto original debt.

[stevemLS]

Re: Calculating interest on charging order

haha thanks a lot so just to clarify interest is only added onto original debt.

You got it.