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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 26069
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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Joshua You helped me earlier with some advice around my

Resolved Question:

Hi Joshua
You helped me earlier with some advice around my family's proposal to buy my aunts house & allow her to live in it with them.Her husband has died and she no means of paying off her mortgage as there is no insurance. The issue we discussed was that whilst the family may be able to raise enough to cover her mortgage they would not have enough to pay off the restrictions that are in my late uncle's name. It would mean she would sell her home at less than market value to the family and you felt this may not be acceptable to holders of the charging orders. Since our chat I have obtained an up to date copy of the register of title. The actual wording is "RESTRICTION" It seems it is an "interim charging order" and there is no mention of a final charging order. As the property was in joint names, and this a restriction not an actual charging order I wondered if this made a difference? I had read something relating to cases where Northern Rock (this is not the company we are dealing with by the way) had been misleading people into thinking they had to repay the amount when they sold their properties when in fact they did not as they had restrictions not charging orders on jointly owned properties? Now I am confused.com Please help.
Submitted: 2 years ago.
Category: Law
Expert:  Joshua replied 2 years ago.
Joshua :

Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.

Joshua :

Hello again. With your permission I will be with you in a minute or so...

Joshua :

Thank you for your patience.

Joshua :

There are two stages to obtaining a charging order. The first stage is to make an application to the court; and judge will review the documents submitted and if he is satisfied with them, will grant an interim charging order and schedule a hearing to decide whether to make the charging order permanent. The purpose of an interim charging order as to prevent the defendant disposing of property between the time an applicant applies for a charging order and the time it is granted. If the charging order application was never heard or was refused, then a charging order exists. This is not mean that there is no debt owed but rather that the debt is not secured against the property

Joshua :

you may wish to contact the court that dealt with the application to ascertain whether the charging order was made final and granted in the first instance. If you are unsure which court was dealing with the matter, a copy of the interim charging order can be obtained from the land registry which will contain the details. if you find no final charging order was ever granted for the application was refused, with you wish to dispense with the step of checking that the court altogether, you can make an application to the land registry to remove the interim charging order restriction

Joshua :

you can do so using the following form which would need to be signed by your aunt as owner of the property:

Joshua :

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/352956/RX3.pdf

Joshua :

is there anything above I can clarify for you?

Customer:

OK so IF a final charging order was never granted I can ask the court to remove the interim charging orders? Unless the charging order was made final the debt is NOT secured against the property so my aunt would be free to sell it for however much she choses?

Joshua :

yes-actually you don't need to ask the court to do anything. your aunt can make an application to the land registry directly to remove the interim charging order on the basis the charging order was not confirmed-assuming this was the case. you can do so using the RX3 form above.

Customer:

brilliant. Thank you!

Joshua :

Your conclusion is correct in that if the charging order was not confirmed, the debt is not secured against the property but do not forget that does not mean that the debt is not owed and the creditor could decide to make a future application to seek to enforce the debt. however, crucially it would not prevent the property from being sold so it may allow at the very least some immediate flexibility

Joshua :

A pleasure. Do let me know if I can assist any further as matters progress.

Joshua :

If you have no further questions just now, I should be very grateful if you would kindly take a moment to rate my service to you above.

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