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Ash
Ash, Solicitor
Category: Property Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I have taken out a loan from a company to purchase a

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I have taken out a loan from a company to purchase a property many years ago. They have placed a legal charge on the property at the land registry as security for their loan. The property is now worth more than the loan. The loan agreement is very short
as in it just says four things, the interest rate, how the interest is to be applied, the fact that it is secured against the property and that the loan is repayable on their demand. The charge at the land registry references this company that the loan was
taken out against. My question is that for a separate reason, I don't live there, I want to terminate the loan and hand back the property to them as in I don't want to have to sell the property first and then hand them the cash I just want them to activate
their charge and they take ownership of the property and can sell it. I don't want to receive any money from it I just want it removed from being my ownership. The loan agreement doesn't cover this situation. I'm thinking that they will say that I have to
just sell the property first and hand them the cash, this would cause a problem for me so my question is finally, is there any way that I can force them to take the property they have a charge on and is registered as the security on in exchange for cancelling
the loan and then they sell the property themselves. I don't have any other assets that I could repay this loan with and currently they are not demanding the money back so it needs to be something I can trigger myself.
Submitted: 1 year ago.
Category: Property Law
Expert:  Ash replied 1 year ago.
Hello my name is ***** ***** I will help you with this.
What does the agreement say about ending the loan?
Customer: replied 1 year ago.
It's a very short document, the only mention of repayment is "The loan is repayable on demand" which is on their demand. The other three points just detail the interest, how it's calculated and mentions the security.
Expert:  Ash replied 1 year ago.
Have you asked them to do what you want? In law you can't make them cancel it. Only if you default can they get a Court order to sell and take control
But just ask them - they may say yes, otherwise you cant force them.
Can I clarify anything for you about this today please?
Alex
Customer: replied 1 year ago.
I had thought this, however the one point I thought was weird was that I would need their permission to sell it because they have a charge on the property so in effect they could block the sale and so block me being able to repay the loan. I basically shouldn't have signed it but it was a long time ago.
Expert:  Ash replied 1 year ago.
You dont need their permission to sell. If you do sell your Solicitor would agree to discharge the loan from the proceeds.
Does that help?
Alex
Ash and other Property Law Specialists are ready to help you
Customer: replied 1 year ago.
ok got it thanks.

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