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Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10585
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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Hi there I have a house worth 95 - 100k My mortgage is

Resolved Question:

Hi there
I have a house worth 95 - 100k
My mortgage is 75 k
I have just had a final charging order out on it for 18k so total charges are 93k
If I sell the house and the proceeds would cover all charges, is the 18k creditor legally allowed to block the sale(even if they get their money) or can the sale legally go ahead.
If a third charge is put on the property for say 20k so total charges are 113k can the 20k creditor block a sale (for say between 95 and 100k) or would the first two charges be able to allow it and not worry about the third charge?
Many thanks
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.

Your Solicitor is under a duty to make sure all the Charges are released on completion. The first 2 charges take precedence, and both Lenders will have to remove their Charge upon receipt from your Solicitor of the monies required to redeem the Charge.

As regards ***** ***** Charge, it would be normal for your Solicitor to write to them at the onset, explaining that there is negative equity and therefore insufficient funds available to clear the outstanding balance. The creditor would normally then write back and agree to receive whatever money is left in reducing their debt and in return would remove their charge from the Land Registry. On top of this, the creditor will normally ask you to sign an agreement, confirming that you will pay off the remaining balance by way of monthly payments, at a sum that you can afford.

Your Solicitor will therefor eneed to get all of this agreed, but he can then exchange Contracts with your Buyer. So, in truth, the third creditor can delay matters, but if they have any sense, they will agree to accept a reduced payment on completion of the Sale.

I hope this assists and sets out the legal position.

Kinds Regards

AL

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

For Aston Lawyer

Hi Al

Thanks for your reply

Just to clarify further , the second charge is a ccj not a secured loan that has culminated in the charging order. Does that make a difference ?

As to a potential third charge and putting business sense to one side (quite a bit of spite in this one !!) could the third charge in theory point blank refuse the sale going ahead , particularly if the second charge is looking to force a sale down the line?

My background is I am looking to sell my house to clear off first two charges and try and do it before anyone gets an idea of putting another charge on it!!

Expert:  Aston Lawyer replied 3 years ago.

Hi James,

As rgeards the second "charge" my answer remains the same even if this is

a CCJ- they will still want paying in full, I'm afraid.

In theory, yes, any third charge holder could scupper any Sale, although they would normally accept whatever is left in the pot!

Hope this helps.

Kind Regards

AL

Customer: replied 3 years ago.

For Aston LAwyer

Hi Al

Thanks for that , that clears it up.

Regards

James