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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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We ( a company )have a contract registered against

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We ( a company )have a contract for sale registered against a freehold residential development property from a private seller, dated 05 August 2015 ( we are buying the property subject to planning, now granted and option also engaged ), we also hold a charge on the property which is for money since 2009, we have exchanged the contract, now we are informed the seller is under a possession order, our contract for sale and value of our third charge exceeds both the second and first charge holders combined value by some 2 times, can we take priority to the property and take voluntary possession from the owner and complete our contract, or block the possession by the first charge holder to allow our purchase to complete ?, any other advise that would allow us to, effectively overreach or similar please, this is urgent ?
Hello my name is ***** ***** I will hell you.Just to be clear, is the possession order arrears being discharged by your purchase?Alex
Customer: replied 2 years ago.
Hello Alex
Thank youyes our purchase more than exceeds the debts the seller owes to the lenders, does this make a difference to our position ?
Customer: replied 2 years ago.
We have a contested second charge from 2009, with the third charge holder who says they are second charge, however, whatever position it works out to be, our purchase covers off all debts except ours in full, we are owed more than both the others put together
Has your solicitor given undertakings that the arrears for charges be paid off for their consent not to enforce the court orders?
Customer: replied 2 years ago.
Hi Alex,Sorry we do not owe the money, we are the purchaser, we have exchanged contracts with the seller a private individual who has a possession order against them. We have a charge on the property also, and are paying market value for the property. The price we are paying pays everyone off except us which is only part payment, but our debt exceeds the value of the other 2 combined, we wish to stop them taking possession from our position presently - can you assist with this ?
yes I understand that. But if you are purchasing you can discharged arrears and possession order can be removed if your solicitor gives an undertaking. Has your solicitor offered this?
Customer: replied 2 years ago.
Hi AlexNo, our lawyer is apprehensive in that he says that he would need cleared funds in his account first to give such an undertaking, and we cannot provide this amount, the sellers lender states the whole of the mortgage balance is arrears !!, this sums to some 860k, they are saying as his mortgage term has expired, he is age 76, that all is arrears.We wish to know if we can use our registered charge which sums to more than any others, and the seller is willing to give us possession as we are then able to settle all lenders he has upon completion of our purchase of the same asset, orthat we have some, overreach as we have exchanged upon the purchase and the sum being paid discharges them anyway, but we wish to have possession or control of it, hope you understand where we wish to secure our position and protect the equity for the seller as well
sadly not. Unless you have a possession order yourself then it can't be enforced by you.Even if it could be the creditors for any prior charge would have priority.Only if the possession order and debt can be assigned to you, would you have any say.It may be if there is possession the holder of the property would sell it based on clearance of sums due.Can I clairfy anything for you about this today please?Alex
Customer: replied 2 years ago.
Can the seller give voluntary possession to us at court on the basis of our debt far exceeds by 2 to 1 the other debts ? perhaps as part of a debt management order ?
Customer: replied 2 years ago.
The other question is as we have exchanged on the property we have a contract to purchase, can we enforce this ?
the seller could give you possession but you would need to deal with the possession order.If contracts are exchanged the seller is committed. The seller really needs to apply to stay any eviction.If there is no eviction then he can apply to suspend the possession order until the sale goes through
Does that clairfy?Alex
Customer: replied 2 years ago.
Hello AlexCan you explain if the owner gave us possession what you mean we would have to deal with the possession order ?, do you mean the existing possession order ?, they do not as yet have enforcement of that order with bailiff's, but we do know they are likely to - so, if we got possession first, as well as the purchase has exchanged for us to buy then we have occupation as well as we have exchanged along with control of the property - Am I correct in my understanding so far, if I am following you then we would have to notify them we have possession, prior to them, and then we can pay them from the purchase proceeds directly, or the sellers lawyers ?
Customer: replied 2 years ago.
We exchanged prior to end of last year
The seller need to apply to the court to stay the possession order. That is what they need to do. Apply pending sale.But when you purchase the creditor will be paid off and the possession order comes to an end in any event, if they own a charge.
Does that clairfy?Alex
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Customer: replied 2 years ago.
Dear AlexThank you, ***** ***** back to you when we have considered matters further to see if there is another position which maybe more suitable.