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Alex J.
Alex J., Solicitor
Category: Property Law
Satisfied Customers: 3840
Experience:  Two years conveyancing experience.
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I have a legal charge of £25k against my property which I

Customer Question

I have a legal charge of £25k against my property which I can discharge in full on completion of my house sale in 6 weeks. The lender loaned the funds on a no interest basis with a redemtion date of 1 year - currently in month 4.
Assistant: Where are you located? It matters because laws vary by location.
Customer: he is now demanding an extra £10k as interest otherwise he's refusing to remove the charge on full payment. I'm in UK.
Assistant: Has anything been filed or reported?
Customer: A legal charge was registered with Land Registry in Feb 2017
Assistant: Anything else you want the solicitor to know before I connect you?
Customer: Yes, can he stop the sale on my property even when paid in full and within the agreed deadline of 1 yr
Submitted: 8 months ago.
Category: Property Law
Expert:  Alex J. replied 8 months ago.

Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. In theory he could stop the sale of your house but it would be a bad idea for the following reasons:

- You cannot unilaterally and retrospectively charge interest on a arbitrary when you previously had no contractual right to charge interest;

- There is a legal maximum that states you cannot "fritter away the equity of redemption". This means a charge holder cannot unreasonably with hold consent for the sale of a property by refusing to release a charge.

If he carried insisting on this payment you would have grounds to sue him.

The best way to deal with this is to get your solicitor to write to him and ask him to confirm that he will release consent. State that in equity you cannot fritter away the equity of redemption and you reserve the right to hold him responsible for any costs or losses you suffer if he unlawfully blocks the sale. Kind regards AJ