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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I have a debtor who owes me a large amount of money who I

Resolved Question:

I have a debtor who owes me a large amount of money who I intend to issue with a CCJ and also apply to take out a charge on his property (House). Recently he arranged a new Mortgage through a Mortgage Consultant who is a friend of his. As he does not have a very good credit record he needed someone else named on the mortgage to secure the loan. The Mortgage Consultant came up with a scheme whereby he put his own name to the mortgage in order to secure the loan in both their names.
I have checked with the Land Registry and the record shows them as joint owners of the property. I understand that the Mortgage Consultant owns 1% of the property and sometime in the future will remove his name from the deeds and receive 1% of the value of the property (between £3&4K) for his troubles!! The Mortgage Consultant is obviously not contributing to the Mortgage Payments as my debtor’s bank details will confirm as this is just a financial arrangement to fool the bank into thinking my debtor is a good risk for the mortgage they have given him……… not sure if all this is legal?
My question is: Should the court grant me a charge on his property, would my debtor be able to say that the property is owned 50/50 with this Mortgage Consultant which would not leave enough equity in the property to repay his debt to me, or is it the case that once the charge has been granted, no further change can be made to the ownership details of the property?
Submitted: 10 months ago.
Category: Law
Expert:  Ash replied 10 months ago.

Hello my name is ***** ***** I will help you.

I assume you have the evidence to show its not 50/50?

Customer: replied 10 months ago.
No I don't have any evidence I only had a verbal comment from the debtor that this was the arrangement.... ref. the 1%. I don't see how I can find out any more about the arrangement!!
Expert:  Ash replied 10 months ago.

OK - then you can get a charge once you have the CCJ.

When it comes to an order for sale then you can challenge his %. He would then have to provide evidence as to how the property was funded and his legal interest.

Clearly if there was some sort of fraud going on, your charge would trump that fraud. Indeed you could report them to the Police.

But the burden would be on them to show it was owed 50/50 rather than just being named on the deeds.

Can I clarify anything for you about this today please?

Customer: replied 10 months ago.
No, that answers my question. Thank you.
Expert:  Ash replied 10 months ago.

If this answers your question could I invite you to rate my answer before you go today, otherwise the site doesn’t pay me for the time spent with you. Thanks in advance and good luck.

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