cwah
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Post by cwah on Mar 18, 2019 18:37:40 GMT
Hello,
I'm about to buy an ex council flat, and I've downloaded the title registry and it looks like there are 3 charge registers?
1. Equitable charge created by a final charging order of the Wandsworth County Court
2. Equitable charge created by an interim charging order of the County Court at Wandsworth
3. Equitable charge created by an interim charging order of the County Court Money Claims Centre
They all have a court number and all in favour of the Council with a court reference number.
So I have few questions:
1. How do I find out the amount owed from the court reference number?
2. What's the impact on mortgage? Can the property still be mortgaged with a charge? Or does the charge needs to be satisfied first?
3. Can the charge be repaid on purchase completion, so the sales proceeds will satisfy the charge?
Thank you
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copacetic
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Post by copacetic on Mar 18, 2019 19:51:14 GMT
This will be something your conveyancer should check.
It sounds like the previous owner has lost in a court case and haven't paid the other party so the court has issued a charging order over their property. When you pay the money to your solicitor they will forward it to the seller's solicitor. The seller's solicitor will satisfy all outstanding charges with the cash received before paying the remainder to the owner. There might be an issue if the amount of the debt is larger than the price you are paying for the flat.
If you are buying at auction you should engage a solicitor before bidding to check the legal pack otherwise you could be in for a world of trouble.
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cwah
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Post by cwah on Mar 18, 2019 20:22:34 GMT
This will be something your conveyancer should check.
It sounds like the previous owner has lost in a court case and haven't paid the other party so the court has issued a charging order over their property. When you pay the money to your solicitor they will forward it to the seller's solicitor. The seller's solicitor will satisfy all outstanding charges with the cash received before paying the remainder to the owner. There might be an issue if the amount of the debt is larger than the price you are paying for the flat.
If you are buying at auction you should engage a solicitor before bidding to check the legal pack otherwise you could be in for a world of trouble.
Thanks for your answer. It's not an auction. It's via agent. What shall I ask now? I'd like to buy it but the charge are against the seller not me? What trouble could I get? I suppose it's still mortgageable? it won't impact the ability to get a mortgage? Any chance to know the amount owed? Thanks
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copacetic
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Post by copacetic on Mar 19, 2019 0:51:09 GMT
When I said 'trouble' when buying at auction before your solicitor has looked at the legal pack, I just meant that you could pay a deposit then find the charge holder hasn't given their permission to sell the property if equity is less than debt, or the property has title issues, or access rights, or restrictive covenants/excessive ground rent if it's leasehold, etc. A good solicitor will make sure everything is in order whether buying by auction or private sale.
The current charges on the property will be satisfied before the title passes to you. Your bank will register a new charge on the property as security for their loan to you. It's unlikely that the bank will consider the current charges on the property as a factor when deciding if they can offer you a mortgage.
You might be able to find the amount the judgement was for at:
although you'll have to pay a fee. The amount may also change over time if the seller made partial payments or interest has accrued. The only way to get the current amount owed would be to ask the seller's creditor for a statement which your solicitor will get from the seller's solicitor.
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cwah
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Post by cwah on Mar 19, 2019 8:15:55 GMT
Thank you very much. Sounds like good news then. Hopefully it's still mortgageable and charges are low
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