Adinuff's UE Diary

[PlanB]

Re: Adinuff's UE Diary

Here's an explanation of what impact a Restriction has on remortgaging as well as selling (taken from a law firm's website):

What is a Restriction?

A restriction is an entry made in the Proprietorship register of the title to freehold property, which restricts what dispositions (sales, mortgages, gifts etc) can be registered against the title. It is registered using form RX1 and removed with form RX4. A restriction can be used to protect any number of interests, and there are many standard forms. The full list can be found in Land Registry Practice Guide 19 at section 10.

[PlanB]

Re: Adinuff's UE Diary

When did you get the CCJ? If it was less than six years ago then it'll still be on your CRA file which will make remortgaging difficult.

Are you paying 8% interest on this CCJ because if you are then if you are forced to pay it off from the proceeds of you remortgage then you'll be better off if the loan interest rate is less than 8% if that's any consolation.

The Restriction issue kicks in for remortgaging as well as selling since it will mean your new lender will want to register their interest as a first charge on Land Registry and that will require the co-operation of the second charge (Deed of Postponement).

When you remortgage a property you redeem (pay off/close) your original mortgage and that lender removes their charge from Land Registry. In effect that means the second charge moves up the line to become the first charge because all charges are registered in chronological order. Then your new lender (the remortgaging one) would in theory have to join the queue as a second charge which they won't be willing to do. This is why they will require permission from the second charge lender to let them jump the queue.

This is why I suggested you get your necessary funds as a further advance from your current lender because they'll be no need to alter their position in the queue and all the legal shenanigans which go with that manoeuvre.

Some mortgage charges are specific to the amount borrowed at the outset (£185k in your case), others say things like "any or all monies owed " which could create the flexibility for them to increase the amount you now owe without disturbing Land Registry, and without you having to inform the creditor with the Restriction.

This is a complicated area of law and I'm not a lawyer. Annoyingly for you the creditor who has obtained the Restriction uses Weightmans to manage this debt and they are a lawyer known to be an aggressive one too so you won't be able to slip anything passed them.

[Adinuff]

Re: Adinuff's UE Diary

Hi Guys,
Im going to paste the section out of our title deeds minus personal details. We pay £18.27 a month towards a debt of around £10k for the CCJ and Weightmans Solicitors are managing it. From my understanding its an interim charging order. Current mortgage is £185k and value of property is £330k. As for F&F i would like too negotiate that before i remortgage. I will say a family member is prepared to help us pay it off and then remortgage. We have some money put aside to pay them off before mortgage. Any more questions please ask. Need some help on this.

(XX.XX.2008) RESTRICTION: No disposition of the registered estate
is to be registered without a certificate signed by the applicant
for registration or his conveyancer that written notice of the
disposition was given to XXX XXX XXX at care of XXXXXX, XXXXXX,
being the person
with the benefit of an interim charging order on the beneficial
interest of XXX XXX XXX made by the XXXX XXX
Court on XX XX 200X Court Reference XXXXXX.

Many Thanks


Adinuff

[PlanB]

Re: Adinuff's UE Diary

can an you clarify whether it an interim or a full charging order?

Can you clarify whether this is an Interim Charging Order or a Charging Order (you've previously posted it is a Charging Order)?

Our posts crossed

[PlanB]

Re: Adinuff's UE Diary

this account has interim charging order on our house.

Can you clarify whether this is an Interim Charging Order or a Charging Order (you've previously posted it is a Charging Order)?

You've also posted earlier that you are making a monthly payment of only £1 towards the CCJ. Is that still the case?


EDIT: I've read back and it seems you are now paying £18.27 towards this CCJ so was there a variation at some point? You also posted that Weightmans solicitors were managing the debt, is that still the case?

[cymruambyth]

Re: Adinuff's UE Diary

Hi Guys,
Hope everyone is fine. Right this account has interim charging order on our house. The house is jointly owned but this is a my debt. So technically they cant put a charging order the house (unless laws have changed) Were looking to remortgage our house to extend it now. Should i contact the creditor and try and reach a settlement with them or is there a way we can remortgage without them taking the amount charged? I know this can be done if your selling to a 3rd party and only have a restriction on your property. Dont know if this applies to remortgages. Niddy Your input is more valued in this post.


Cheers


Adinuff

can an you clarify whether it an interim or a full charging order?

[PlanB]

Re: Adinuff's UE Diary

this account has interim charging order on our house. The house is jointly owned but this is a my debt. So technically they cant put a charging order the house (unless laws have changed) Were looking to remortgage our house to extend it now. Should i contact the creditor and try and reach a settlement with them or is there a way we can remortgage without them taking the amount charged?

As I understand it you would need to ask the creditor with the CO to sign a Deed of Postponement when you remortgage since you will be worsening their position when you extract equity from the property. A lot will depend on how much equity is in the property.

One way round this is to remortgage with your current lender i.e. apply for a further advance for the monies to cover the cost of the house extension, although you may still need to obtain permission from the creditor with the CO. They can block the remortgage by refusing to give permission.

Are you paying anything towards the CCJ which gave rise to this CO? If you have a system in place to pay off the debt and have kept to it you may be able to negotiate to leave CO there while you switch the lender with the first charge. If you're not paying anything to reduce the debt then they may well exercise their right to block the remortgage. If this happens then they still can't take any money from you (unless they obtain an Order for Sale) and you'll be stuck with no remortgage.

What the creditor will be saying to themselves is if you are capable of raising funds to extend your property then you are capable of raising funds to pay their debt off in full. Once you make them aware of the situation then could try to apply to the court to convert that CCJ instalment order into a forthwith order.

Tell us more about the repayment terms of the CCJ (£10k owed), the size of the mortgage, the amount of equity at present, the amount you intend to borrow for the extension.

When we know all that then it'll be easier to make suggestions. It's possible that you could negotiate a decent F & F despite the CO because the creditor might like the idea of getting some money now when you remortgage, rather than 100% of what is owed on the CCJ in years to come.

[nightwatch]

Re: Adinuff's UE Diary

Hi Adinuff,
your post makes a CO and restriction quite clear.
one problem is that a lot of conveyancing solicitors do not know the difference and are a little, shall we say hesitant, in going ahead with the sale for fear of a rollicking.
I am sure someone on here managed to find a solicitor who knew their onions.
In your case with a remortgage it may be slightly different, I honestly don't know
good luck NW

[Adinuff]

Re: Adinuff's UE Diary

Hi Guys,
Not to worry. Hopefully someone will come along with some info. Wheres Niddy? On some paradise island he bought with all the donations Also i have pasted a post from another site below. Hope its some help to people. think it may of already been covered on another thread.

Adinuff

I feel that this is so important that I thought a new thread should be made to highlight the importance of understanding the law on Charging Orders and how many people are stuck with their property in the false believe that they have had a Charging Order put on their property.

In particular the thousands of Northern Rock customers that have had unsecured debt turned into secured debt by their tactics.

If your property is jointly owned a creditor will not be able to obtain a CO against you, they can only get what is called a restriction.

The laws on Restrictions are totally different to Orders, the most important being there isNO OBLIGATION for you to pay any of the proceeds of the sale to the creditor.

However, during the whole court process you go through the reference from all parties (especially the creditor) will be to charging order and NOT to restriction. This is done in order to decieve you believing you are stuck with a CO.

However, not all solicitors are aware of the law in this regard and it is important that you raise this point with them in the first instance before proceeding with them

Quote:

Restriction


The restriction which can be entered on the register where a charging order is made against one of joint proprietors is in the following form :-
No disposition of the registered estate is to be registered without a certificate signed by the applicant for registration or his conveyancer that written notice of the disposition was given to [name of person with the benefit of the charging order] at [address for service], being the person with the benefit of [an interim] [a final] charging order on the beneficial interest of (name of judgment debtor) made by the(name of court) on (date) (Court reference.…).
You are therefore correct in saying that when the Land Registry receives an application to register, for example a transfer, we will not ask to see the consent of the person who has the benefit of the charging order. We will only want a certificate from the applicant for registration or his conveyancer that the person who has the benefit of the charging order has been given written notice of the transfer.

If both joint owners sell the land to a third party the restriction will be cancelled when the transfer to the purchasers is registered.


So I hope I have provided benefit to everyone who has had a restriction entered against them (especially NORTHERN ROCK CUSTOMERS) who believe wrongly that they are Charging Orders.

You now have the freedom to go and sell your houses with the knowledge that the vultures can do nothing

I also think this VERY IMPORTANT point needs highlighting by the moderators as many many people are stuck with houses that they believe they cannot sell

The restriction which can be entered on the register where a charging order is made against one of joint proprietors is in the following form :-

No disposition of the registered estate is to be registered without a certificate signed
No sale of the house can be completed without a signed letter in the format prescribed
by the applicant for registration or his conveyancer that written notice of the
by the people selling or their solicitor

disposition was given to [name of person with the benefit of the charging order] at
stating that notice is given to Northern Rock at their registered head office address
[address for service], being the person with the benefit of [an interim] [a final] charging
being the creditor who has a secured charge on the property

order on the beneficial interest of (name of judgment debtor) made by the (name of court) on (date)(Court reference.…).
of the debtor who has the CCJ at the court blah blah

we will not ask to see the consent of the
We dont need diidly squat from Northern Rock or need to inform them of the pending sale

person who has the benefit of the charging order. We will only want a certificate from the applicant for registration or his conveyancer that the person who has the benefit of the charging order has been given written notice of the transfer.
All we need is the letter confirming that Northern Rock has been informed of the date of completion

If both joint owners sell the land to a third party the restriction will be cancelled when the transfer to the purchasers is registered.
On completion date Northern Rock can swing on my finger and wave goodbye to their fake seurity

I hope this helps to the PM

[nightwatch]

Re: Adinuff's UE Diary

I'm with Pixie on this sorry Adinuff. I'm sure someone will be able to help soon hang on in there x

[Pixie]

Re: Adinuff's UE Diary

Sorry Adinuff. I don't know anything about charging orders but didn't want to read and run.

[Adinuff]

Re: Adinuff's UE Diary

HFC CC (mine)CCJ and charging order

Balance Approx £8453

Default Date - Approx 2006

Default Amount - £10000

DMP (Payplan) - £18.27

Sold - weightmans Solictors

05/01/13 SAR and CCA request sending tomorrow

07/03/13 - Reduced payment to £1

26/03/13 - Update..this account has CCJ and charging order against house. Kept payment the same £18.27 a month.

25/04/13 - received letter back from beneficial reference SAR request.Thank you for your recent letter in which you have requested information relating to the agreements you hold with us. we have assumed that your request for information is likely to be in relation PPI policies. We can confirm the account did not hold PPI charges. Returned £10 postal order :-)From the statement they have sent 2003-2006. There is nearly £1500 of charges they have put on

Hi Guys,
Hope everyone is fine. Right this account has interim charging order on our house. The house is jointly owned but this is a my debt. So technically they cant put a charging order the house (unless laws have changed) Were looking to remortgage our house to extend it now. Should i contact the creditor and try and reach a settlement with them or is there a way we can remortgage without them taking the amount charged? I know this can be done if your selling to a 3rd party and only have a restriction on your property. Dont know if this applies to remortgages. Niddy Your input is more valued in this post.


Cheers


Adinuff

[Pixie]

Re: Adinuff's UE Diary

Mum doesnt really know what they were going on about due too limited English. Dont want to send them a letter incase it resets the statue barred clock.

The letter I gave the link to is carefully worded so that it doesn't re-set the SB clock, as are all the template letters on AAD. As the doorstep collectors have already been, you won't need to send the letter but do send it if you get any more threats of them coming to your door.

Will just tell them politely to xxxx off.

That's what I did

[Adinuff]

Re: Adinuff's UE Diary

This is the template letter to send when a dca threatens to send doorstep collectors.

Doorstep collectors are NOT bailiffs and have no right to enter your home. What did your mother say to them? If any call again just tell them, it's up to you whether to do it politely or not, to go away and then close the door on them. If they refuse to leave then call the police as they are trespassing.

In four years I've only had one doorstep collector and he left without a murmur.

Hi Pixie,
Mum doesnt really know what they were going on about due too limited English. Dont want to send them a letter incase it resets the statue barred clock. Will just tell them politely to xxxx off.

Adinuff

[Adinuff]

Re: Adinuff's UE Diary

I would just wait until the next one and see what happens

Hi Mrs D,
Have been ignoring awhile now. Will wait and see if they keep sending threatograms or they get a bit more serious.

Adinuff