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Ask Buachaill Your Own Question
Buachaill, Barrister
Category: Law
Satisfied Customers: 10527
Experience:  Barrister 17 years experience
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1 I entered into a development loan agreement to refurbish

Customer Question

1 I entered into a development loan agreement for me to refurbish 4 houses
2 To secure the loan a charge was given over the 4 properties
3 I have discovered that the lending company is dormant and has no funds or assets.
4 The lending Company has not provided any funds in accordance with the loan agreement
5 The company is refusing to cancel the charges on my properties.
How do I get the charges removed as I now want to sell the houses.
Submitted: 1 year ago.
Category: Law
Expert:  Buachaill replied 1 year ago.
1. You need to get a Summons issued seeking a Direction to the Land Registry cancelling the charges registered on the property. Essentially, a court has power to direct that any wrongly registered charges be cancelled. In theory, the Land Registry could do it. However, if the cancellation of the charges is opposed by the lending company, then it is likely to end up in court. So you should instruct a solicitor and initially get the solicitor to write to the land Registry and seek the cancellation of the charges. If this is not successful, then you should issue a Summons and challenge it in court. Be aware that you will recoup all your legal costs in this instance, as courts take a very dim view of a lender registering charges when they haven't advanced any money. Additionally, you should also seek damages for the monies lost owing to the delay in selling the houses.
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Customer: replied 1 year ago.

Thank you for your advice.

A solicitor has estimated that to take the matter to court it could cost in the region of £30-40,000. which I don't have.

Is this something I can do myself with the proper legal advice and if so would you be in a position to advise me through the relevant stages and what and how to write and apply.

Expert:  Buachaill replied 1 year ago.
2. You definitely can do it yourself. I would advise you initially to take a look at the Land Registry website and examine their rules to see the process for cancellation of charges. You can make an application yourself to have these charges removed by the Land Registry. I would advise you to get the help of someone in a Law Centre or even some retired solicitor who dealt with conveyancing who might have a knowledge of Land registry rules. This is the first step and if you succeeded here it would avoid going to court. As regards ***** ***** court, I would advise you to approach a barrister on Directive Professional Access and get them to draft the papers and represent you in court. I should all not cost more than £3-5,000 if you do it this way.

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