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Ed Turner
Ed Turner,
Category: Property Law
Satisfied Customers: 1241
Experience:  Director and Consultant Solicitor (Self-Employed) at Ed Turner LLB Limited
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My father took out a bridging loan on a property for my now

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Hi my father took out a bridging loan on a property for my now ex husband. He never paid it off an my father was left with a charge on his property. Does the charge get taken off after so many years if it hasnt been paid off or will it stay there forever. It was for £100,000 and the company he got it from no longer exist.
Assistant: What steps have been taken so far? Has any paperwork been prepared or filed?
Customer: No nothing this happened about 9 years ago now and my father couldnt afford a solicitor so jist left it as my ex husband said he would start to pay it back but never has.
Assistant: Where is the property located?
Customer: Bolton
Assistant: Anything else you want the Lawyer to know before I connect you?
Customer: No i dont think so

Hello. I am Ed, a Solicitor qualified in England & Wales with over a decade’s experience in the legal profession advising clients.

I specialise in Commercial Contracts, Business Transactions, Employment, Dispute Resolution, Personal Injury and Road Traffic Law and will be able to resolve your legal problem today.

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Customer: replied 6 months ago.
How much is the premium call?

The site will offer you a phone call and give you a price.

While the death or insolvency of a party to a contract does not automatically terminate a contract, it is arguable that the charge has lapsed in view of the passage of time and the charge-holder no longer being an extant legal entity.

I recommend that you investigate the current corporate incarnation of the charge-holder. It may be the case that the company was bought out by another company when it went into administration or liquidation and that the new company has assumed all the assets and liabilities of the old company.

For example, if the original charge-holder was the now-defunct Northern Rock bank, their purchasers, Virgin Money may be the charge-holder.

If you can no longer identify the charge-holder, I recommend that you instruct specialist property solicitors to review all your documentation and apply to the Land Registry for the charge to be removed from the property’s entry on the Register.

Do you still need expert assistance in this matter?

Please revert to me if you have any further questions and I will be delighted to assist.

Otherwise, I shall be grateful if you will please mark your enquiry as “Closed” and give me a “Positive” rating in order to conclude this matter.

Kind regards

LawyerEd

Customer: replied 6 months ago.
Does the charge come off anyway after a certain amount of time or does is stay there until paid off in full?

I am not aware of any legislation that would mean that the charge would "lapse" after a period of inactivity.

I would need to see the original loan and charge documents to advise if there is a minimum term before the borrower is released, but this would certainly be an unusual provision.

Going by basic contract law principles, I believe that the liquidation of the lender and the long period of inactivity would lead a court reasonably to conclude that the loan contract and the charge has lapsed.

You should seek advice from the Land Registry. However, they may insist on an Order from the Lands Tribunal for the charge to be removed.

Ed Turner and other Property Law Specialists are ready to help you