charging order

[alanbrown100]

I have a charging order on my jointly owned home,the order is in my name only,it dates to 1991 it is over �5000 and not regulated by the consumer credit act,it also states within the claim that interest will be charged at the rate of 15% p.a. Is this interest rate correct,and allowable as it now increases the debt three fold,and I am having to sell the property.Thanks

[nodumbblonde]

http://www.debtquestions.co.uk/debt_forum/ Lots of helpful people here who might be able to help.

[Killerschick]

Hi Alan

I'm assuming the Charging Order results from a CCJ, in which case interest may either be claimed based on the original contract or stautory provisions.

Statutory interest is applicable to non CC Act debts and is payable at the rate of 8% on judgments of over �5000.

Contractual interest may be claimed at the rate stipulated in the original contract. It may only be claimed if it is stated in the original contract that it will be charged AND it is fully detailed in the particulars of claim. See the case of the Director General of Fair Trading V First National Bank plc for the House of Lords decision on this issue.

I would assume the Charging Order is registered by way of a Caution with the Land Registry. This gives the creditor an interest in the sale proceeds but not the property itself. As a result if you and the co-owner own the property as joint tenants you can over-reach the Caution if you sell as two trustees. This sounds complicated but it's actually the normal way sales are conducted. However, finding a conveyancer who will let you do this is and a purchaser whose conveyancer will accept it is another matter because most of them believe they are obligated to clear anything registered against a property.