Final, Interim and Registered Charge on a Property.

[chrissa1]

I have a fairly good grasp of the law with regards to charging orders but could someone please clarify these things for me please?
Is an Interim Charge fully enforceable when a property is sold ie has it not been made Final and therefore will not be paid?
What does it mean if there is a Registered Charge on a property? Do they have to be informed of a sale and can they stop a sale?
I know that the mortgagee has first call on any sale proceedings. Thanks. Chrissa.

[ubasses]

Not sure about the interim charge bit, but the solicitor for the person buying the property will find any charges registered as soon as they start their searches. A property sale cannot complete until the terms of the charge have been satisfied. Ie a mortgage is a charge on a property and the sale cannot go through until the mortgage has been repaid in full. If the property has been repossessed, the charge will be released on receipt of all sale proceeds and any shortfall will remain as an outstanding debt.
On receipt of sale funds the solicitor will pay all chargeholders in order of priority the mortgage company no doubt will hold the first charge.

[chrissa1]

There is no repossession and I have got the asking price and the mortgagee has agreed to this sale. However, another charge on the property will not be payed out so can they say, "no you can't sell it at that price"?

[buildersmate]

There's a fuller explanation in the link below, but an Interim Charging Order is just as effective as a Final Order (after the court hearing) and many creditors do not bother registering the Final Order anyway since the interim is enough to ensure they get paid the debt, as awarded by the judgement in the County Court (or wherever).
http://www.diyconveya...red-against-land.html
I believe that the mortage still gets the first call, being a 1st Charge on the property.

[chrissa1]

Thank you buildersmate. That link was very helpful.

[Eve]

Have you got a copy of the title register? What does the restriction on the title register relating to the other charge (not the mortgage) say? Does it specifically refer to say their written consent being required in order for any transfer (eg sale/remortgage) to take place (disposition)?

[chrissa1]

Yes Jenna I've got the Land Registry title search and there is no mention of wording that you write about.

[Eve]

Is there any mention of the other charge on the title register? Is it up to date?

[chrissa1]

Yes it does say that written notification is to be made before disposition.

[themas]

Chrissa

I'm a bit confused. There is an interim charging order. Is that the charge you refer to as a "Registered Charge", or are there two charges (in addition to the mortgage) on the title register?

I've a vague recollection from one of your earlier posts that you were disputing the charging order. If you were, there should have been a Court hearing which would have resulted in it either becoming a final charging order or being cancelled. Did anything like this happen? If not, it seems unfair to you if you did not have an opportunity to dispute the charge in Court. Jenna (who I think is a solicitor) might be able to advise on whether you could still apply for a final order hearing.

As a generalisation, my understanding is that anyone holding a registered charge can prevent a sale, but that it is possible to go to Court for an order allowing the sale to go ahead even if the holder of the charge will not be paid from the proceeds. Again, Jenna may have more info., but your solicitor would have to be involved.

[chrissa1]

Yes, there was going to be a Hearing to make it Final but this was postponed because my husband was in hospital and then he died in February. I received a very kind letter of condolence from the Judge and the Hearing was not going to be listed until after July.