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Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10606
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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My husband took out a secured loan in his own name in 2006

Customer Question

My husband took out a secured loan in his own name in 2006 with Welcome Finance. He was made bankrupt in 2007, and Welcome Finance we're advised. He never heard from them again. Last year we put our house up for sale, and we did a check on Land Registry and there is a charge on their from a company called MKRR. My husband contacted them and it seems that Welcome Finance sold the debt to MKRR in 2007. My husband no longer lives here with us, but the property is still in joint names. Do I have to pay his debt to MKRR when I sell the property, or can I apply to have this charge lifted, and it become an unsecured debt as it is solely in my husbands name?
Submitted: 3 years ago.
Category: Law
Expert:  Aston Lawyer replied 3 years ago.
Hello and thanks for using Just Answer.

My name is ***** ***** am happy to assist you with your enquiry.

Could you please clarify if the Welcome Finance Charge was only signed by your husband as opposed to both of you? (Normally, if the property is in joint names, both owners would have to sign the Charge to enable it to be registered at the Land Registry).

I look forward to hearing from you.

Kind Regards
AL
Customer: replied 3 years ago.

Hi Al, thank you for getting back to me so soon. Yes we both signed the charge, I had no choice.


 


I will look forward to hearing from you.


 


Kind Regards


 


Jayne

Expert:  Aston Lawyer replied 3 years ago.

Hi Jayne,

Thanks for your reply.

As the Charge is registered against the property, albeit now in the name of MKRR, I am afraid to say that it will need to be repaid as and when you sell.
All Lenders have small print in their Charges giving them the right to assign (transfer) their Charge to a third party, and the borrower remains liable if this happens. Hence, even though the Charge is in favour of MKRR, you and your husband are jointly and severally liable for whatever is outstanding under the Charge.
Jointly and severally means MKRR can come against either of you or both of you for the debt.

Until the amount due under the Charge is therefore paid in full, it will remain on your Deeds, and whenever you do sell, your Solicitor will be under a duty to pay off MKRR from the proceeds of Sale.

I am sorry this is not the answer you were looking for, but it sets out the legal position.

Kind Regards
AL
Customer: replied 3 years ago.

Dear AL


 


Thank you for your reply. I did think this was the case. Many thanks for all your help.


 


Kind Regards


 


Jayne

Expert:  Aston Lawyer replied 3 years ago.

Thanks Jayne. All the Best. AL

 

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