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Alex J.
Alex J., Solicitor
Category: Property Law
Satisfied Customers: 3497
Experience:  Two years conveyancing experience.
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Can negotiated terms and conditions be applied in charge against

Customer Question

Can negotiated terms and conditions be applied in charge against a property.
I.e. the loan is described to be x% for x amount of months for that charge against that property?
Submitted: 3 years ago.
Category: Property Law
Expert:  Alex J. replied 3 years ago.
Hi

Thank you for your question and welcome to Just Answer.

A charge and a loan are completely seperate concepts. A loan is what creates indebtedness and a charge is what secures

A mortgage is just a word used to describe a charge over land.

If you just have a loan with no charge then the loan is unsecured.

Can I be of any further assistance?

Kind regards

AJ
Customer: replied 3 years ago.

however the ombudsman has deliberated that I am entitled to repay the loan at x amount of months and at 0%.


 


Woolwich tried to cancel it with all sort of clauses which I managed to negotiate away.


 


However if I sign a charge then all it states is that I owe an x amount to the Lender but there are no terms.


 


So how is it possible to make the Terms and conditions that I managed to negotiate stick and be linked to the charge that I am required to sign?

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

The charge (if you are to have one) should either be for a fixed amount or should refer specifically to the ombudsman judgment.

You must ensure the charge does not cover "interest and future liabilities". This will be defined under the words "Secured Liabilities" or something similar.

If the document that creates the indebtedness does not allow the bank to charge interest it wont be covered by the charge anyway.

How much are they actually seeking to charge?

Kind regards

AJ

Customer: replied 3 years ago.

15.000 i.e. 15k approx


 


So the document indebtedness will hold all the terms and condition of the loan?



If so how is that formalized and cast in stone with all the terms?


 

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

Your indebtedness is presumably set out by the ombudsman decision?

What you need is a deed of forbearance acknowledging the debt and giving you a structured time to repay with 0% interest. In consideration for giving that deed you will grant the bank a fixed financial charge of £15,000 over your property. Can I ask are the bank insistent on having a charge?

As the bank have messed this up I would ask them to pay for you to go to a local solicitor to draft this agreement.

I look forward to hearing from you.

Kind regards

AJ
Customer: replied 3 years ago.

Thanks for your response,


the solicitor is absolutely giving ultimatums that they will go to court if I do not sign the charge.


I am already paying the debt as per agreed monthly amount as soon as the Deliberation of the ombudsman was given. Sep 2012. (or something like that) I have not defaulted or had irregular date payments as it is a standing order.


I have been trying to get this Solicitor understand that the indebtedness must be protected as well. As I tried to explain to him that he had already stated that if I missed just one payment then the indebtedness would have 8% interest applied to the whole amount for the length of the term.


and would immediately go to court for a default. I had negotiated that if I miss a payment of no fault of ay own but a bank technical problem then I am not at fault.


also have said that if I miss a payment then I may be in agreement in paying 8% interest on the monthly amount only and the indebtedness will still be at 0% less a month (or months that I missed)


all agreed in a letter and as described before a few other terms.


they did indeed agree to pay towards a solicitor but only to cover the signature of the charge and have promised only £250.


I had a solicitor which I used before but said that £700 may cover the costs and that was only for the charge as he could not see the terms and conditions described by the Ombudsman. But the ombudsman declaration clearly states that the indebtedness (loan) must be at 0% and at my choice of number of monthly payments.


So because some times it has been difficult to understand each other and I have several other Legal issues to deal with currently I had asked for my money back as I will try to seek other assistance.


He has been nice at least not to charge me the time to see the documents.


So At the moment I am stuck in explaining what is required form my solicitor.


So as per our conversation I have created an E-mail that states this:


Could you kindly please advise if you are able to provide the following services for a property law matter:

a. Provide advise that the charge and document is done properly for a Chiswick property. (flat )

b. Make sure the indebtedness is set up properly.

c. the terms and conditions of the indebtedness is on a deed/document properly and legally binding.

The reason I am asking such questions is because there is an order from the Ombudsman that I need to pay back an x amount to a previous mortgage Lender.

However, the x amount has to be at 0% for x amount of months of my choice.

After several communications we manged to agree certain terms of the indebtedness. However, the Solicitor representing the Lender is not helping at all regarding these terms and is putting a lot of pressure for me to sign the Charge and that is it.

Therefore, I need representation that everything is done properly.

Upon the above description, I would kindly like to have a response if you are able to take on this and advise and complete the whole process to a successful conclusion whilst protecting my interests.

Furthermore I would kindly like to have a quotation for these services.

Many thanks,

Paul

could you kindly advise if I am explaining correctly what I need from what we have discussed?

 


thanks,


 


 

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

I am afraid this only question and answer service. While the professionals are legally qualified we cannot act for anyone.

I would suggest you write back to the lender's solicitor and say that there is no obligation on you to provide a legal charge. It is an unsecured loan and unless you default you will not be consenting to any form of charge because it will prejudice your relationship with your other lender.

Can you absolutely confirm that you were not regard by the FOS to grant a new charge?

Kind regards

AJ
Customer: replied 3 years ago.

Thanks, regarding my previous reply I am not asking to correct the wordings or do a letter for me for the general work request from solicitors


I am asking if the wordings are correct to request work from a solicitor from the said issue. As discussed before a previous solicitor could not understand what I was asking.
Hopgully I would be able to have from you a kind response whether the letter for engaging solicitors work meets the criteria of:


describing the issue yes/no


Describing the request for work yes/no


 


And to reply to your kind last response:


yes I am legally required to put a charge on the property.


But the lender is legally required to keep the loan at x months for 0% (where I do not see any documentation prepared for it)


 


Some how solicitors a failing to understand the two different steps required


Of course the Banks's solicitors are only interested in the charge.


I need to protect my interests

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