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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I am the 3rd Charge Holder on a property that has been

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Hi, I am the 3rd Charge Holder on a property that has been repossessed, and the sale has just completed , However I never received the funds from the party that took possession. The 2nd Charge Holder obtained a possession order and proceeded with the sale , which completed on friday, they were at all times notified i had an interest but failed to provide a completion statement until requested. However they then paid the outstanding money from the sale into court. How can this be as I thought all charge holders were to be paid first . I understand that if the Second Charge Holder gets a possession order - granted by the courts - even the First Charge holder has limited power and they have to apply to the courts to have their interest represented, such as assurance that all out standing arrears, interest payments will be secured. Why was this money paid to court as apposed to discharging the charges which were legally registered , mies was the 3rd and final charge on the property ? There is also a shortfall of the amount owed which is circa 50K .. can this be secured against another property that the party owns , that owes me the outstanding charges ? and can i seek a bankruptcy order if they fail to pay within 30 days - or is that unreasonable ? i have waited 18 months for payment ?

Hello my name is ***** ***** I will help you.
Just to be clear, the 1st charge holder was also not paid?
Customer: replied 2 years ago.

Sorry just got this - the first charge holder was paid and the second charge holder also paid . My charge was correctly registered and granted by the party who owned the property. The money was paid into court as opposed to settling the charge

Is the money still in Court`?
Customer: replied 2 years ago.

I believe it was paid across on friday - but there are no other registered charge holders

Have you applied yet to court for payment?
Customer: replied 2 years ago.

No - is that the process - why was the charges not discharged I understand that this is the normal process ? Why was it paid into court as opposed to paying the charge holders ?

I don't know why this was not followed. I know you have to pay off charges before your charge. It may be that charges that followed they were not too bothered about which is why they made payment into court.
You therefore have to make an application to be paid out of court. You need to complete form n244 and seek payment as the third charge.
The form is here
The court will list the matter for hearing and decide whether you should be paid. Can I clarify anything for you about this today please?
Customer: replied 2 years ago.

Yes .. So there is a shortfall and the charges were registered with the land registry .. what are my rights given that there is a shortfall of some 50K .. do i have to issue proceedings to recover this shortfall .. and can i secure this against any other property ?

and what is the reasonable timescale for payment before i can issue bankruptcy proceedings ?

Yes you can secure the debt against any other property. You do not need new proceedings. You can issue bankruptcy at ANY time.
Does that help?
Customer: replied 2 years ago.

thanks ..

If this answers your question might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.
If you need more help please click reply.
Customer: replied 2 years ago.

Ok .. Answered correctly , FYI; I have just been informed by lawyers what happened;

1; The original possession order was made in 2013, stated that the 2nd charge holder would sell the property and return the proceeds to the property owner, after discharging payment to the first charge holder;

2; However, on enforcing a possession order, some 10 - 12 months after it was granted, they became aware of "our charges", so had to apply to the courts to amended the possession order, this new order stated that the balance of the sale money could no longer go to the property owner after the 1st charge holder and the party with the possession order had been paid, instead it has been paid to the courts. Thus preventing the party who gave us the charge as security from obtaining the sale proceeds.

So correct we now have to apply to the courts for the release of the mont to my lawyers.

so what do i have to do to release your payment ?

To release it just click one of the happy faces! Thanks
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