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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 10401
Experience:  I have been practising for 30 years.
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I have a contract with real eatate company for 40% charge

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I have a contract with real eatate company for 40% charge against Building in UK. The pay back for the charges as stated in the contract from rental and resale. However, after 2 years of receiving my income in q bases i found out in UK land registery that the company they just have borrowing aginst the same bulding from uk bank. Can the uk company do double dipping ? Or request a loan without obtaining my consent in first palce?
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Thank you for your patience,

Can you just explain a little more please what exactly this charge is in respect of.

What is it supposed to do and why?

Are you saying that there is a first charge loan against the property to a UK bank and you are second?

Is there a problem with getting paid? What is the issue?

Customer: replied 1 year ago.
On 2103 i have executed a contract whereby i transfer GBP153,000 to UK company that Owens a building under renovation. They receive my money under charge contract whereby my pay back plus the profit will be either from sales or rent upon completion of the renovation . I stareted to receive my recuring rent income. However, recently i found out that the bulding were charged again without letting me know to UK Bank. My issue is can they execute charge contract without my consent? What would be my right if they did it without my obtaining my consent at first place ? If they defult who will own the building?

They can put as many charges as they like on the property although very often, a lender will want a restriction on the property charge whereby there are no further charges without their consent.

If you had a charge against the property, you could have always put a restriction on it to prevent further charges after yours. Lenders do this to stop people over committing themselves and having other commitments which may prevent them paying that lenders loan.

If the property is sold, the charges are paid off in order based upon the date of creation. If there is not enough money to repay all the charges, then the property does not get sold. In one of the lenders repossesses the property, the charges are paid off in order and if there isn’t enough to pay them all, then the last ones don’t get paid.

Can I clarify anything for you? Please rate the service positive so that I get paid. We can still exchange emails. Best wishes. FES.

F E Smith, Advocate
Category: Law
Satisfied Customers: 10401
Experience: I have been practising for 30 years.
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