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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 70416
Experience:  Over 5 years in practice
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Hi, Under UK law if there is more than one charge against

Customer Question

Hi,
Under UK law if there is more than one charge against a house and the owner sells, who would be creditor to get paid, as it would seem unfair on the others if there is not enough profit on the house to go around?
Submitted: 3 years ago.
Category: Law
Expert:  Jo C. replied 3 years ago.
Hi.

Thank you for your question. My name is XXXXX XXXXX I will try to help with this.

The short answer is this. Whoever has the benefit of each charge gets paid in order of priority not in proportion.

So whoever has the first charge gets first call on the money, the second charge she gets second call and so on and so forth.

If there is not enough money to go round, the later charges miss out.

If you let me know exactly what the problem is I may be able to tell you a little more.

Can I clarify anything for you?

Jo
Jo C. and other Law Specialists are ready to help you
Customer: replied 3 years ago.

Thank you Jo,


 


Is there anyway you can get them removed other than paying them off.

Expert:  Jo C. replied 3 years ago.
Getting a charge removed is extremely difficult.

Usually it can only be removed if it was incorrectly entered such as when the lender has no interest in the property or if the lender agrees.

Sometimes, a lender will agree to "postpone" their charge in favour of someone else which means that someone with a late charge will take priority over theirs and in the event the property is sold the later charge would get paid. However no lender is ever wonder a duty to postpone their charge and the most common reason for having charges postponed is if the charge is for a local authority right to buy discount or for money due to the legal aid board.

If you are paying charges off from cash as opposed to the sale of the house, you can pay them off in any priority you wish. You do not have to pay the first charge off first in that case.

The charges being paid off in order only applies if you are selling or remortgaging or if the house is repossessed.