Final charging order

[Meg888]

I have a mortgage and a secured loan against my house for the approx value of �144k. In this current climate the house is now only worth about �150k, I have been trying to sell for over a year. If I do sell at �150k, by the time i've paid lenders, & agents & legal fees there would very little if nothing left. Where do I stand with the Charging order? It's only been on the house for the past 4 months and its for a credit card debt of �4k from four years ago. I was just wanting to go back to renting once i've sold - but what will happen with charging order. Thanks in advance.

[LAW_DROP-OUT]

i always thought when ever you sell a property the charging order , alway has some sort of "priority " . meaning you cant actually sell the house , until , the "order " has been hounoured/ paid in full .... other ABers may have more accurate answers ....?

[Eve]

If they have a charging order them they will have applied to the Land Registry to have it registered on the title to your property.

There is normally a restriction entered on the title register (which any seller's solicitors will see when you go to sell) preventing any dealing with the property (eg selling or remortgaging) without their consent (usually only given if they are paid off).

It might be worth checking though as some only put a restriction they need written notice of a sale etc... Anything in this vein should only be done with legal advice though!

Could you sell any of the contents to up the price, especially if you're renting and the property is fully or partly furnished.

Could you look into the possibility of taking a lodger in (with the lender's consent) to decrease your monthly outgoings and allow you to save to pay off some of the loan depending on the interest accruing?

Have you got a repayment or interest only mortgage?

[Meg888]

Thanks Jenna, I will check whether or not it is just a notification of sale. I have an interest only mortgage which i've had for almost 4 yrs and secured loan on it for 18 mths. Obviously both of these are much higher amounts than the charging order and I would have thought a sale would certainly prioritise those. I cannot take in a lodger as I have a young daughter and it's only a 2 bed. Most of my furniture is second hand and not worth much. I got on the mortgage ladder again after a divorce, and it's just been a massive mistake. I'm now slipping into negative equity and the possibility of repossion could become very real in the coming 12 mths if circumstances dont change. I've considered selling by auction (as i've had no luck with agents even though I've reduced it �10k) but a little worried as I could only afford the outlay of an auction if it sold.