Legal Charge Not Being Released For A Sale.

[chrissa1]

A man who has a legal charge on a property I have successfully sold via the Assisted Voluntary Scheme with my mortgage lender, has refused to release the charge, thus ending the sale. He says he is owed £20K by my late husband, (long story) but it has been explained to him that I am in Negative Equity anyway and therefore he will not get a penny.

He is just being bloody minded and spiteful. Is there anything that I can do? I've sent him an email appealing to his better nature.

[chrissa1]

I have no means to pay it as I've had to sell our home too and just have my pension left to live on.

[chrissa1]

No, nothing.

[chrissa1]

I haven't got the energy or the strength to pursue that all trigger on my own. Thanks though for your posts.

[dzug2]

Well he may have nothing to gain by holding out - but he's nothing to lose either. And he does have the satisfaction of causing you problems in exchange for making £20K out of him - which you have directly or indirectly done.

[chrissa1]

Thank you very much trigger, you're very kind. I think I'll just let matters take their course.

[bednobs]

i don't really understand either - the house will be repossessed and get much less than the £350k and you will have a bigger debt (perhaps this is just what he wants?)
I agree about the life cover though - i really thought that lenders insisted on it

[chrissa1]

I am sure you're right bednobs.

[Stu Dent]

I doubt that a solicitor acting for the other side would disclose to you how he had advised his/her client. He/she would be in breach of confidence.

Apart from that, the advice would be completely duff.

My advice (to the other party) would be sit tight, wait until the housing market recovers, and maybe get some or all of your £20k back. It's not that I am unsympathetic to your plight.

I'm surprised the property can be sold (even at auction) with the charge hanging over it. It might be a good thing for you if it does sell though since an investor may wish to make a deal with your creditor to extinguish the charge?

[factor-fiction]

Yes, if were him, if I needed the money I would hold out for my £20K I'm afraid.
But I still don't understand why, if he has a charge on the property, he doesn't automatically get £20K when the sale goes through, leaving you and the bank to sort out the negative equity issue. Or does the bank have the first charge on the property giving them first call on any sales proceeds, and he has only a secondary charge?
This case sadly also shows the need for adequate life assurance cover where large mortgages are involved.

[chrissa1]

The bank or the mortgage lender always has first charge on a property. They are hardly going to lend someone £300K and then, when it has to be sold, say to "Mr Nobody", "oh you go first with your £20K charge".

I am sorry Stu Dent but that is what his solicitor told me. I don't lie.

So theroretically, a 7 year old barn conversion s just going to allowed to rot until it reaches a sale price which covers the mortgage and arrears + all the interest that is going to build up over the years + the little sh*t's £20K?

Excuse my language but I really don't care anymore. Shall I commit suicide? That would make him happy. Lol.

[sherrardk]

Hi Chrissa, sorry to hear that you are getting so much grief over this. Have you (or have you considered) going bankrupt?

[chrissa1]

Yes sherrardk, I've looked at it but am waiting to see what state my finances will be left in. The sale of this property would have helped me but not inasmuch as to come out on the other side with anything.

[sherrardk]

Hi Chrissa, when we lost our pub we had to go bankrupt. It stops the stress (which I know can be unbearable) - it was a horrible time in our lives and not a position that we ever imagined we would be in. If you have no possible chance of repaying this our any other outstanding debt it might be a way forward.

[chrissa1]

I will have to seriously consider it sherr. Thanks.