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Ask Clare Your Own Question
Clare, Solicitor
Category: Property Law
Satisfied Customers: 34885
Experience:  I have been a solicitor in High Street Practise since 1985 with a wide general experience.
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I have a fairly complicated question I need help with but

This answer was rated:

I have a fairly complicated question I need help with but it's too long to fit in your chat message box. how do I ask it?
Assistant: Where are you located? It matters because laws vary by location.
Customer: England
Assistant: Has anything been filed or reported?
Customer: Our BS has applied for a possession order which was granted yesterday and we have 56 days to vacate
Assistant: Anything else you want the solicitor to know before I connect you?
Customer: Yes there is a second charge on the property that adds a complication.

Thank you for your question

My name is Clare

I shall do my best to help you but I need some further information first

What would you like to know?

Customer: replied 9 months ago.
Our building society has applied to the court for a possession order due to our breach of contract, as we don't have the money to settle. Yesterday the order was granted and we have 56 days to vacate. There is also a second charge on the property and although they are not pressing us they are asking for a redemption figure that we believe is wrong. I don't mind the BS selling the property to recover their capital but I don't want the 2nd charge holder obtaining any money from the sale until I have had a chance to review the information they hold under the data protection act and how they have calculated the redemption figure. All we have is the figure and no explanation for it. Am I right to think that the conveying solicitor the BS will use, will prevent any monies from being paid to the 2nd charge if they were notified that the figure was in dispute? If so how do we find out who the solicitor is or will be and how do we need to go about notifying them? Also would this affect the BS's recovery of their capital?I understand that a Subject Access Request under the Data Protection Act could take a maximum of 40 days but some institutions don't meet the deadline and if I have to send a follow up letter that could delay things another 14 days etc. and this is my worry. They could spin it out until they get away with it.There should be money left over for us once these accounts have been discharged but I believe and it is my opinion that the 2nd charge holder is trying to pull a fast one by claiming more than their share.

Who holds the second charge?

Customer: replied 9 months ago.
The second charge was initially registered with HMLR by Consumer Loans who went into administration last year. The account was picked up by Manchester BS. I suspect there has been some collusion between them (1st and 2nd charges) but I have no firm evidence or at least not sufficient to make an allegation, It's just intuition. The redemption figure they have given us is £75000 and we believe the figure should be less than half that.
Customer: replied 9 months ago.
Hello Clare
I've not heard from you for several days, are you still considering this or have you dropped it?
Vic Ryder

My apologies for the delay

How much do you believe it should be?

Customer: replied 8 months ago.
Well their agent told me in an email that:- 'The amount you were originally expected to repay, which is calculated by simply multiplying the monthly payment by the term (in months) was £125,652.60. To date you have repaid £114,546.17, a difference of £11,106.43.'Plus we have to consider that they may have an acquisition outlay and will want a return on that. without doing any calculations I guess we expected maybe 20 to 25 000 pounds.However, through mismanagement by consumer Loans and by myself to some degree the balance has compounded its way to £130 000 and the Manchester BS could claim to be doing us a favour by reducing it to $75 000. Hence my SAR for more info. It will need delicate handling if I'm going to negotiate without upsetting them. But I also need an element of control so they don't get paid until the dispute is settled. Hence my original questions.Vic Ryder
Customer: replied 8 months ago.
I've got an email yesterday 24 June, saying 'I'm glad I could answer your Property Law question' but when I follow the links there's nothing new on the site and wherever I look I can't find an answer, am I missing something here?
I also have one delivered on the 21 June asking 'How was our service?' How can I answer that until the service is finished? Unless it is finished and I just can't find your answer.
Confused, enlighten me please.Vic Ryder

I am sorry - your last answer went awol - and the site standard emails are computer generated

I and as confused as you by the information you received from their agent - have you not been provided with a proper breakdown yet?

Customer: replied 8 months ago.
I have checked all the chat boxes on the site and they all seem to be there, Clare. So which went awol I don't know.In answer to your last question. NO we have you not been provided with a proper breakdown yet, I'm hoping one comes in the SAR package when it arrives, otherwise I'll have to ask for one specifically.

The problem is that the Mortgage Company have no choice but to pass any excess to the Holders of the Second Charge.

They have to arrange the sale of the property pay of the principal loan, the sale costs and the repossession costs and then forward the balance to the holders of the Second Charge.

The Second Charge holders are then meant to deduct the Principal debt and costs etc before accounting to you

This is not optional - it is the legal process

I am sorry - I know that this is not the informtaion you were hoping for - but the matter is outside your control.

Please ask if you need further details

Customer: replied 8 months ago.
Than you for that Clare. Just to clarify, are you saying that the second charge holder can legally deduct any amount they see fit even though that amount is disputed by the client?

Technically they could - although you retain your right to challenge them for the return of any overpayment?

Clare and other Property Law Specialists are ready to help you
Customer: replied 8 months ago.
Thank you for your help Clare, at least I'm better informed about the situation.