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Want to sell my house - charge on my property

(11 Posts)
springydaffs Tue 06-Jan-15 18:42:22

I want to sell up and my kids have a charge on my property, inherited from their father (who has since died) as part of the divorce settlement.

The charge is enforceable when the youngest finishes his first degree which won't be for a few years. If I sell up before that time do I have to pay them the charge when I sell the family home?

TIA

greenfolder Tue 06-Jan-15 18:47:33

yep

kilmuir Tue 06-Jan-15 18:49:21

Yes

MoreBeta Tue 06-Jan-15 18:51:06

Yes. In fact, legal title will not be transferred until that charge is settled.

You cannot be forced to sell if there is a legal charge but if you do then you have to pay the debt secured by the charge - as you do when there is a mortgage on a house for example.

springydaffs Tue 06-Jan-15 19:03:58

Can I wangle it (with the kids' agreement) that a new charge for the same amount is put on a new property? I don't want my kids to inherit yet.

springydaffs Tue 06-Jan-15 19:05:35

I don't want the kids' agreement but I assume I have to, legally.

VanitasVanitatum Tue 06-Jan-15 19:13:50

In theory yes you can, the kids sign a form for the land reg to discharge the charge and then you sign a new one on the new property (will have to be second to the mortgage if you have one).

This will depend on the wording of the charge though, and whether the kids have the authority to agree to this.

Could you not put their money in an isa or something, if it's possible to pay off now? Again depends on how flexible the documentation is. Your conveyancer should be able to help if it's a decent firm.

springydaffs Tue 06-Jan-15 19:27:06

I'd rather not pay off now. They went off the rails when they inherited from their dad - too late for me to intervene as they were over 18. I'm very reluctant for them to have another lump sum.

Is an ISA a better bet than property?

The charge they are due is a percentage of my current property, not a future property (unless a new charge is put on the new property).

Half the equity in the house is mine, the rest is mortgage and charge. I was hoping to buy a future property in cash and do some property development - nothing heavy or risky, largely cosmetic. A new super hospital has been built locally, just finished, and I was hoping to cash in by buying property near there at a decent price and selling later on: I would realise a profit even if I did nothing to the property - but time is of the essence, I've already missed the initial boat.

I also don't want to be trapped in this property.

VanitasVanitatum Tue 06-Jan-15 19:31:14

If it's as a percentage of the current property is there a clause to pay it off before the specified time?

LandRegRep1862 Thu 08-Jan-15 09:58:36

As VanitasVanitatum states from a registration perspective it is quite simple in that the existing charge is discharged (form DS1) by the children and a new charge (form CH1) is completed by you and them to then charge the new property.

However the key issues here are the legal/financial ones for both you and them to ensure that all interests are protected.

So, yes you can sell up and deal with their charge/interest if you are all in agreement but now might be the time to revisit the scenario with a legal/financial adviser as other options may also be available.

Our forms are available online at https://www.gov.uk/government/organisations/land-registry but at this stage it is wider advice you need

springydaffs Thu 08-Jan-15 16:41:20

Thanks very much for advice.

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